10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
	Washington, D.C. 20549 __________________
	FORM 10-Q  __________________
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2018 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ______ Commission file number 001-36558 Townsquare Media, Inc. (Exact name of registrant as specified in its charter)
Delaware (State or other jurisdiction of incorporation or organization)	4832 (Primary Standard Industrial Classification Code Number)	27-1996555  (I.R.S. Employer Identification No.)
240 Greenwich Avenue Greenwich, Connecticut 06830 (203) 861-0900  (Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices) __________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x    No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of "accelerated filer," "large accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o  (Do not check if a smaller reporting company)	Smaller reporting company	o
		Emerging growth company	x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes o    No x

As of August 7, 2018, the registrant had 18,896,501 outstanding shares of common stock consisting of: (i)14,248,526 shares of Class A common stock, par value $0.01 per share; (ii) 3,011,634 shares of Class B common stock, par value $0.01 per share; and (iii) 1,636,341 shares of Class C common stock, par value $0.01 per share. The registrant also had 8,977,676 warrants to purchase Class A common stock outstanding as of that date.

TOWNSQUARE MEDIA, INC.

INDEX

PART I FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets as of December 31, 2017 and June 30, 2018	1
	Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2018	2
	Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2017 and 2018	3
	Consolidated Statement of Stockholders' Equity for the six months ended June 30, 2018	4
	Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2018	5
	Notes to Unaudited Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	31
Item 4.	Controls and Procedures	32
PART II OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Defaults upon Senior Securities	33
Item 4.	Mine Safety Disclosures	33
Item 5.	Other Information	33
Item 6.	Exhibits	33
	Signatures	34

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

TOWNSQUARE MEDIA, INC.

CONSOLIDATED BALANCE SHEETS

(in Thousands, Except Share and Per Share Data)

(unaudited)

	December 31, 2017			June 30, 2018
ASSETS
Current assets:
Cash	$	61,205		$	62,444
Accounts receivable, net of allowance of $1,079 and $1,735, respectively	61,558			67,122
Prepaid expenses and other current assets	7,540			10,670
Current assets held for sale	879			—
Current assets of discontinued operations	7,222			256
Total current assets	138,404			140,492
Property and equipment, net	104,030			107,892
Intangible assets, net	495,501			494,723
Goodwill	241,888			241,888
Investments	8,092			11,292
Other assets	8,965			11,258
Long-term assets of discontinued operations	59,478			—
Total assets	$	1,056,358		$	1,007,545
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	13,442		$	19,478
Current portion of long-term debt	9,524			5
Deferred revenue	17,281			12,248
Accrued expenses and other current liabilities	24,919			25,472
Accrued interest	5,699			4,631
Current liabilities of discontinued operations	2,440			3,038
Total current liabilities	73,305			64,872
Long-term debt, less current portion (net of deferred finance costs of $6,803 and $5,948, respectively)	555,618			556,470
Deferred tax liability	26,283			26,887
Other long-term liabilities	9,390			8,975
Long-term liabilities of discontinued operations	10,682			—
Total liabilities	675,278			657,204
Stockholders’ equity:
Class A common stock, par value $0.01 per share; 300,000,000 shares authorized; 13,819,639 and 14,248,526 shares issued and outstanding, respectively	138			138
Class B common stock, par value $0.01 per share; 50,000,000 shares authorized; 3,022,484 and 3,011,634 shares issued and outstanding, respectively	30			30
Class C common stock, par value $0.01 per share; 50,000,000 shares authorized; 1,636,341 shares issued and outstanding	17			17
Total common stock	185			185
Additional paid-in capital	367,041			363,817
Retained earnings (deficit)	13,265			(14,158		)
Accumulated other comprehensive loss	(532		)	—
Non-controlling interest	1,121			497
Total stockholders’ equity	381,080			350,341
Total liabilities and stockholders’ equity	$	1,056,358		$	1,007,545

See Notes to Unaudited Consolidated Financial Statements

1

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in Thousands, Except Per Share Data)

(unaudited)

	Three Months Ended   June 30,						Six Months Ended June 30,
	2017			2018			2017			2018
Net revenue	$	117,303		$	119,577		$	202,232		$	207,568
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	83,186			84,434			148,167			149,790
Depreciation and amortization	5,158			4,628			9,946			9,229
Corporate expenses	6,635			7,290			11,984			12,939
Stock-based compensation	175			246			356			436
Transaction costs	189			677			389			837
Net loss (gain) on sale and retirement of assets	716			(76		)	715			(398		)
Total operating costs and expenses	96,059			97,199			171,557			172,833
Operating income	21,244			22,378			30,675			34,735
Other expense:
Interest expense, net	7,990			8,532			16,243			16,960
Other expense, net	40			48			75			80
Income from continuing operations before income taxes	13,214			13,798			14,357			17,695
Provision from income taxes	5,414			3,723			5,906			4,818
Net income from continuing operations	7,800			10,075			8,451			12,877
Net loss from discontinued operations, net of income taxes	(2,237		)	(8,441		)	(5,895		)	(37,833		)
Net income (loss)	$	5,563		$	1,634		$	2,556		$	(24,956	)
Net income (loss) attributable to:
Controlling interests	$	5,137		$	1,335		$	2,106		$	(25,510	)
Non-controlling interests	426			299			450			554
Basic income (loss) per share:
Continuing operations	$	0.42		$	0.54		$	0.46		$	0.69
Discontinued operations	$	(0.12	)	$	(0.45	)	$	(0.32	)	$	(2.04	)
Diluted income (loss) per share:
Continuing operations	$	0.27		$	0.36		$	0.30		$	0.47
Discontinued operations	$	(0.08	)	$	(0.31	)	$	(0.21	)	$	(1.37	)
Weighted average shares outstanding:
Basic	18,470			18,633			18,450			18,563
Diluted	28,445			27,611			28,498			27,541
Cash dividend declared per share	$	—		$	0.075		$	—		$	0.150

See Notes to Unaudited Consolidated Financial Statements

2

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in Thousands)

(unaudited)

	Three Months Ended   June 30,				Six Months Ended June 30,
	2017		2018		2017		2018
Net income (loss)	$	5,563	$	1,634	$	2,556	$	(24,956	)
Other comprehensive income (loss):
Foreign currency translation adjustments	57		658		114		532
Total comprehensive income (loss)	5,620		2,292		2,670		(24,424		)
Less: Comprehensive income attributable to noncontrolling interest	426		299		450		554
Comprehensive income (loss) attributable to controlling interest	$	5,194	$	1,993	$	2,220	$	(24,978	)

See Notes to Unaudited Consolidated Financial Statements

3

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(in Thousands, Except Share Data)

(unaudited)

	Shares of Common Stock
	Class A	Class B		Class C
	Shares	Shares		Shares	Warrants	Common Stock		Additional Paid-in Capital			Retained Earnings (Deficit)			Accumulated Other Comprehensive Loss			Non- Controlling Interest			Total
Balance at January 1, 2018, as previously reported	13,819,639	3,022,484		1,636,341	8,977,676	$	185	$	367,041		$	13,265		$	(532	)	$	1,121		$	381,080
Impact of change in accounting policy*	—	—		—	—	—		—			2,271			—			—			2,271
Adjusted balance at January 1, 2018	13,819,639	3,022,484		1,636,341	8,977,676	185		367,041			15,536			(532		)	1,121			383,351
Net (loss) income	—	—		—	—	—		—			(25,510		)	—			554			(24,956		)
Dividends declared	—	—		—	—	—		—			(4,184		)	—			—			(4,184		)
Acquisition of non-controlling interests	—	—		—	—	—		(3,671		)	—			—			(645		)	(4,316		)
Conversion of common shares	10,850	(10,850	)
Proceeds from sale of minority interest in subsidiary	—	—		—	—	—		—			—			—			—			—
Stock options exercised	—	—		—	—	—		—			—			—			—			—
Stock-based compensation	—	—		—	—	—		447			—			—			—			447
Issuance of restricted stock	418,037	—		—	—	—		—			—			—			—			—
Disposal of subsidiary	—	—		—	—	—		—			—			656			(19		)	637
Foreign currency exchange	—	—		—	—	—		—			—			(124		)	—			(124		)
Cash distributions to non-controlling interests	—	—		—	—	—		—			—			—			(514		)	(514		)
Balance at June 30, 2018	14,248,526	3,011,634		1,636,341	8,977,676	$	185	$	363,817		$	(14,158	)	$	—		$	497		$	350,341

* See Note 2

See Notes to Unaudited Consolidated Financial Statements

4

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in Thousands)

(unaudited)

	Six Months Ended June 30,
	2017			2018
Cash flows from operating activities:
Net income (loss)	$	2,556		$	(24,956	)
Loss from discontinued operations	(5,895		)	(37,833		)
Income from continuing operations	8,451			12,877
Adjustments to reconcile income from continuing operations to net cash flows from operating activities:
Depreciation and amortization	9,946			9,229
Amortization of deferred financing costs	851			761
Deferred income tax benefit	5,906			4,818
Provision for doubtful accounts	1,112			1,518
Stock-based compensation expense	356			436
Trade activity, net	(5,009		)	(7,341		)
Non-cash interest expense	—			(10		)
Write-off of deferred financing costs	83			97
Net loss (gain) on sale and retirements of assets	715			(398		)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(5,905		)	(3,845		)
Prepaid expenses and other assets	(2,294		)	(2,891		)
Accounts payable	(2,658		)	2,244
Accrued expenses	1,484			(6,600		)
Accrued interest	(5		)	(1,037		)
Other long-term liabilities	(416		)	(416		)
Net cash provided by operating activities - continuing operations	12,617			9,442
Net cash used in operating activities - discontinued operations	(11,190		)	(8,208		)
Net cash provided by operating activities	1,427			1,234
Cash flows from investing activities:
Purchase of property and equipment	(8,415		)	(8,760		)
Payments for acquisitions, net of cash received	(2,157		)	(3,724		)
Acquisition of intangibles	(150		)	—
Proceeds from sale of assets	172			1,923
Net cash used in investing activities - continuing operations	(10,550		)	(10,561		)
Net cash (used in) provided by investing activities - discontinued operations	(3,919		)	22,592
Net cash (used in) provided by investing activities	(14,469		)	12,031
Cash flows from financing activities:
Repayment of long-term debt	(6,662		)	(9,519		)
Dividend payments	—			(2,061		)
Deferred financing costs	(432		)	(2		)
Proceeds from exercise of employee stock options	346			—
Cash distributions to non-controlling interests	(49		)	(514		)
Repayments of capitalized obligations	(88		)	(3		)
Net cash used in financing activities - continuing operations	(6,885		)	(12,099		)
Net cash used in financing activities - discontinued operations	(563		)	(19		)
Net cash used in financing activities	(7,448		)	(12,118		)
Net effect of foreign currency exchange rate changes from discontinued operations	22			92
Net (decrease) increase in cash and restricted cash	(20,468		)	1,239
Cash and restricted cash:
Beginning of period	51,540			61,205
End of period	$	31,072		$	62,444

See Notes to Unaudited Consolidated Financial Statements

5

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in Thousands)

(unaudited)

	Six Months Ended   June 30,
	2017		2018
Supplemental Disclosure of Cash Flow Information from continuing operations:
Cash payments:
Interest	$	15,314	$	17,176
Income taxes	552		1,449
Supplemental Disclosure of Non-cash Activities:
Dividends declared during the period	$	—	$	2,123

See Notes to Unaudited Consolidated Financial Statements

6

TOWNSQUARE MEDIA, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization and Basis of Presentation

Description of the Business

Townsquare Media, Inc. (together with its consolidated subsidiaries, except as the context may otherwise require, "we," "us," "our," "Company," or "Townsquare") is a radio, digital media, entertainment and digital marketing solutions company principally focused on being the premier local advertising and marketing solutions platform in small and mid-sized markets across the United States.  Our assets include 320 radio stations and more than 330 local websites in 67 U.S. markets, a digital marketing solutions company (Townsquare Interactive) serving approximately 13,650 small to medium sized businesses, a proprietary digital programmatic advertising platform (Townsquare Ignite), and approximately 200 live events with over one million attendees each year. Our brands include local media assets such as WYRK, KLAQ, K2 and NJ101.5; iconic regional and national events such as the Taste of Country Music Festival, WE Fest, Country Jam, the Boise Music Festival, the Red Direct BBQ & Music Festival and Taste of Fort Collins; and leading tastemaker music and entertainment websites such as XXLmag.com, TasteofCountry.com and Loudwire.com.

Note 2. Summary of Significant Accounting Policies

Except as stated below, there have been no significant changes in the Company’s accounting policies since December 31, 2017. For the Company's detailed accounting policies please refer to the consolidated financial statements and related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 (the "2017 Annual Report on Form 10-K") filed with the Securities and Exchange Commission ("SEC") on March 13, 2018.

Impairment of Long Lived and Intangible Assets

We evaluate the recoverability of the carrying amount of long lived and intangible assets, which include property and equipment, whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. Our review for impairment of these long lived and intangible assets takes into account estimates of future undiscounted cash flows and the fair market value based on market indicators. An impairment loss is recognized if the future undiscounted cash flows associated with the assets or the fair market value of the assets are less than their carrying value. Impairment losses are measured as the amount by which the carrying values of the assets exceed their fair market values. During the three and six months ended June 30, 2018, the Company determined that the carrying value of certain long lived and intangible assets exceeded their fair market value and an impairment charge of $38.0 million was recorded and subsequently reclassed as part of net loss from discontinued operations.

Discontinued Operations

The Company previously identified two operating segments - Local Marketing Solutions and Entertainment. During the course of 2018, two changes have occurred which affect not only the quantitative factors for determining reportable segments, but also the way in which the Chief Operating Decision Makers (“CODM(s)”) view and manage the business. The North American Midway Entertainment (“NAME”) business, which represented approximately $92.2 million of revenue and $7.3 million of operating income in 2017, was sold in May of 2018, and Mountain Jam, a multi-day music festival, representing $3.8 million of revenue and negligible operating income in 2017, was discontinued. Both were reclassified as discontinued operations for the three and six months ended June 30, 2018 and 2017. In addition, amounts related to NAME and Mountain Jam have been reclassified as discontinued operations within the December 31, 2017 consolidated balance sheet.

Following these events and without the significant net revenue contribution of NAME, the Company has been reoriented and streamlined from a Local Marketing Solutions and Entertainment products and services company to a consolidated and fully integrated local marketing company. We now view our sole product as marketing solutions (including promotion, advertising, and marketing services) geared to local communities and customers in and around our markets (or markets of similar size and/or constitution). As such, the CODM(s) and management have adjusted the

7

information used to evaluate performance and allocate resources to be based solely on net revenue and operating income, which spans across geographic regions predominately within the United States.

Recently Issued Accounting Standards

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases. ASU 2016-02 requires the lessee to recognize in the statement of financial position a liability to make lease payments, and a right-of-use asset representing its right to use the underlying asset for the lease term. The liability and asset are initially measured at the present value of the lease payments. The ASU applies to all leases, including those previously classified as operating leases under Accounting Standards Codification ("ASC") Topic 842. The standard is effective for fiscal years beginning after December 15, 2018, and will require measurement of leases at the beginning of the earliest period presented, using a modified retrospective approach. The Company is currently assessing the potential impact ASU 2016-02 will have on its Consolidated Financial Statements and has begun the process of implementing new policies and procedures.

Recently Adopted Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This new standard replaced all prior U.S. GAAP related to revenue recognition and eliminated all industry-specific guidance. The core principle of this new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. On January 1, 2018, we adopted Topic 606, Revenue from Contracts with Customers and all the related amendments to all contracts using the modified retrospective method.

We recognized the cumulative effect of adopting Topic 606 as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new standard to be immaterial to our net income or loss, as applicable, on an ongoing basis.

The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet, after consideration of discontinued operations, for the adoption of Topic 606 were as follows (in thousands):

	As Reported December 31, 2017		Adjustment due to ASC 606		Balance at January 1, 2018
Assets
Prepaid expenses and other current assets	$	7,540	$	2,271	$	9,811
Total Current Assets	138,404		2,271		140,675
Total Assets	$	1,056,358	$	2,271	$	1,058,629
Total Liabilities	$	675,278	$	—	$	675,278
Equity
Retained earnings	$	13,265	$	2,271	$	15,536
Total stockholders' equity	381,080		2,271		383,351
Total liabilities and stockholders' equity	$	1,056,358	$	2,271	$	1,058,629

As a part of Topic 606 adoption, we reclassified costs associated with sales commissions related to obtaining certain customer contracts. In accordance with the new revenue standard's requirements, for the six months ended June 30, 2018, the impact of adoption of Topic 606 on our consolidated financial statements was a decrease to operating expenses and an increase to net income of approximately $0.3 million as a result of amortizing deferred commissions under ASC 606.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities

8

with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods.  The adoption of this new guidance did not have a material impact on our consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The standard became effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of this new guidance did not have a material impact on our consolidated financial statements.

Note 3. Revenue Recognition

The following tables disaggregate our revenues into the following categories; Advertising, which includes broadcast and local digital advertising products, Live Events and our digital marketing solutions business under the brand name Townsquare Interactive (in thousands):

	Three Months Ended June 30, 2018								Six Months Ended June 30, 2018
	Advertising		Live Events		Townsquare Interactive		Total		Advertising		Live Events		Townsquare Interactive		Total
Net Revenue (ex Political)	$	84,985	$	21,586	$	11,685	$	118,256	$	155,827	$	27,240	$	22,480	$	205,547
Political	1,321		—		—		1,321		2,021		—		—		2,021
Net Revenue	$	86,306	$	21,586	$	11,685	$	119,577	$	157,848	$	27,240	$	22,480	$	207,568

	Three Months Ended June 30, 2017								Six Months Ended June 30, 2017
	Advertising		Live Events		Townsquare Interactive		Total		Advertising		Live Events		Townsquare Interactive		Total
Net Revenue (ex Political)	$	82,805	$	23,956	$	9,958	$	116,719	$	151,564	$	30,361	$	19,274	$	201,199
Political	584		—		—		584		1,033		—		—		1,033
Net Revenue	$	83,389	$	23,956	$	9,958	$	117,303	$	152,597	$	30,361	$	19,274	$	202,232

Revenue from contracts with customers is recognized as an obligation until the terms of a customer contract are satisfied; generally this occurs with the transfer of control as we satisfy contractual performance obligations over time. Our contractual performance obligations include the broadcast of commercials on our owned and operated radio stations, digital sales of internet based advertising campaigns, digital marketing solutions, and the operation of live events. Revenue is measured at contract inception as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Our contracts are at a fixed price at inception and do not include any variable consideration or financing components by normal course of business practice. Sales, value add, and other taxes that are collected concurrently with revenue producing activities are excluded from revenue.

The primary sources of net revenue are the sale of advertising on our radio stations, owned and operated websites, radio stations’ online streams, and mobile applications. We offer precision customer targeting solutions to advertisers through Townsquare Ignite, our digital programmatic advertising platform. We also offer digital marketing solutions under the brand name Townsquare Interactive, on a subscription basis, to small and mid-sized local and regional businesses in small and mid-sized markets across the United States, including the markets in which we operate radio stations. In addition, we offer a diverse range of live events which we create, promote, and produce. This includes festivals, concerts, expositions and other experiential events within and beyond our markets. Our live events also

9

generate substantial net revenue through the sale of sponsorships, food and other concessions, merchandise and other ancillary products and services.

Political net revenue includes the sale of advertising on our owned and operated radio stations from contracts with political advertisers.  Contracted performance obligations under political contracts consist of the broadcast of advertisements across our locally owned and operated radio stations. Management views political revenue separately because political is episodic based on the election cycle and local issues calendars.

Net revenue for broadcast commercials and digital advertisements are recognized as the commercials are broadcast and digital advertisements are placed and the contractual performance obligations for Townsquare services are satisfied. We measure progress towards the satisfaction of our contractual performance obligations via the output produced in accordance with the contractual arrangement (the broadcast of commercials or the placement of digital advertisements). We recognize the associated contractual revenue as the delivery takes place and the right to invoice for services performed is met.

Our advertising contracts are short-term (less than one year) and payment terms are generally net 30-60 days for traditional customer contracts and net 60-90 days for national agency customer contracts. Our billing practice is to invoice customers on a monthly basis for services delivered to date (representing the right to invoice). Our contractual arrangements do not include rights of return and do not include any significant judgments by nature of the products and services.

Net revenue from digital subscription-based contractual performance obligations is recognized ratably over time as our performance obligations are satisfied. Subscription-based service fees are typically billed in advance of the month of service at a fixed monthly fee that is contractually agreed upon at contract inception. The measure of progress in such arrangements is the number of days of successful delivery of the contracted service.

Live events net revenue is recognized as events are conducted and our contractual performance obligations are satisfied. Our live events include single day and multi-day events, generally ranging from one day to four days in duration. We measure progress towards the satisfaction of contractual performance obligations on a daily basis, measured by the successful delivery of the event and honoring customer admissions and vendor event commitments. Live event ticket purchase prices are due at the point of purchase and are nonrefundable. Live event tickets are often sold in advance of the events; in the case of advanced ticket sales, we defer the recognition of consideration received until we satisfy the future performance obligation. Live event contractual arrangements do not include any variable consideration, financing components, or significant judgments.

For all customer contracts, we evaluate whether we are the principal (i.e., report revenue on a gross basis) or the agent (i.e., report revenue on a net basis). Generally, we report revenue for advertising placed on Townsquare properties on a gross basis (the amount billed to our customers is recorded as revenue, and the amount paid to our publishers is recorded as a cost of revenue). We are the principal because we control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising inventory, being primarily responsible to our customers, having discretion in establishing pricing, or a combination of these factors. We also generate revenue through agency relationships in which revenue is reported net of agency commissions. Agency commissions are calculated based on a stated percentage applied to gross billing revenue for advertisers that use agencies.

No impairment losses have arisen from any contracts with customers during the three or six months ended June 30, 2018.

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	At Adoption January 1, 2018		June 30, 2018
Receivables	$	61,558	$	67,122
Short-term contract liabilities (deferred revenue)	$	17,281	$	12,248

10

We receive payments from customers based upon contractual billing schedules; accounts receivable is recorded when the right to consideration becomes unconditional. Contract receivables are recognized in the period the Company provides services when the Company’s right to consideration is unconditional. Payment terms vary by the type and location of our customer and the products or services offered. Payment terms for amounts invoiced are typically net 30-60 days. The term between invoicing and when payment is due is not significant. The Company had no material bad debt expense recorded during the three months or six months ended June 30, 2018.

We record contract liabilities when cash payments are received or due in advance of satisfying our performance obligations. Our contract liabilities include cash payments received or due in advance related to event ticket sales for events scheduled to take place over the course of the current year and digital subscriptions in which payment is received in advance of the service month. These contract liabilities are recognized as revenue as the related performance obligations are satisfied. The decrease in the contract liabilities balance that was included in the deferred revenue balance at January 1, 2018 is primarily driven by $7.2 million and $12.6 million of recognized revenue for the three and six months ended June 30, 2018, offset by cash payments received or due in advance of satisfying our performance obligations. No significant changes in the time-frame of the satisfaction of contract liabilities have occurred during the six months ended June 30, 2018.

In connection with the adoption of Topic 606, we are required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed (previously such costs were expensed as incurred). Our capitalized contract acquisition costs include amounts related to sales commissions paid for contract acquisition costs related to signed contracts with perceived durations exceeding one year. For these contracts, we defer the related sales commission costs and amortize such costs to expense consistent with how the related revenue is recognized over the duration of the contracts. We have evaluated the average customer contract duration (initial term and any renewals) to determine the appropriate amortization period for these contractual arrangements. For contracts with a duration of less than one year, we follow a Topic 606 practical expedient and expense these costs when incurred. As of January 1, 2018, we had a balance of $2.3 million in deferred costs and have recognized $0.5 million and $1.1 million for the three and six months ended June 30, 2018. No impairment losses have been recognized or changes made to the time-frame for performance of the obligations related to deferred contract assets during the three and six months ended June 30, 2018.

Arrangements with Multiple Performance Obligations

In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. When multiple performance obligations are identified, we identify how control transfers to the customer for each distinct contract obligation and determine the period when the obligations are satisfied. If obligations are satisfied in the same period, no allocation of revenue is deemed to be necessary. In the event performance obligations within a bundled contract do not run concurrently, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or by using expected cost-plus margins. Performance obligations that are not distinct at contract inception are combined.

Practical Expedients and Exemptions

We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within direct operating expenses.

We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed as amounts related to those performance obligations with expected durations of greater than one year are at a fixed price per unit and do not include any upfront or minimum payments requiring any estimation or allocation of revenue.

11

Note 4. Interim Financial Data

The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes thereto included in the Company's 2017 Annual Report on Form 10-K. The accompanying unaudited interim consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries, with all significant intercompany balances and transactions eliminated in consolidation. These financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of results of operations for and financial condition as of the end of the interim periods have been included. The results of operations and cash flows for the three and six months ended June 30, 2018 and the Company’s financial condition as of such date are not necessarily indicative of the results of operations or cash flows that can be expected for, or the Company’s financial condition as of, any other interim period or for the fiscal year ending December 31, 2018. The Consolidated Balance Sheet as of December 31, 2017 is derived from the audited financial statements at that date, adjusted for the impact of certain businesses that were discontinued in 2018.     

Our net revenue varies throughout the year. We expect that our first calendar quarter will produce the lowest net revenue for the year, as advertising expenditures generally decline following the winter holidays, and the second and third calendar quarters will generally produce the highest net revenue for the year. During even-numbered years, net revenue generally includes increased advertising expenditures by political candidates, political parties and special interest groups. Political spending is typically highest during the fourth quarter. In addition to advertising revenue seasonality, our live events net revenue exhibits seasonality resulting in the second quarter being the highest revenue period. The most significant driver of seasonality in live events net revenue is our multi-day music festivals which are predominately in the second and third quarter. Our operating results in any period may be affected by the incurrence of advertising and promotion expenses that typically do not have an effect on net revenue generation until future periods, if at all.

In the media industry, companies, including ours, sometimes utilize barter agreements that exchange advertising time for goods or services such as travel, lodging or assets, instead of cash. Barter revenue was $6.8 million and $7.5 million and barter expense was $3.9 million and $4.0 million for the three months ended June 30, 2017 and 2018, respectively. Barter revenue was $11.6 million and $14.7 million and barter expense was $6.6 million and $7.4 million for the six months ended June 30, 2017 and 2018, respectively.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its significant estimates, including those related to bad debts, intangible assets, income taxes, contingencies and purchase price allocations. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the result of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts and results may differ materially from these estimates under different assumptions or conditions.

Note 5. Investments

Long-term investments consist of minority holdings in companies that management believes are synergistic with Townsquare. Management does not exercise significant control over operating and financial policies of the investees; accordingly, the investments are reflected under the cost method of accounting. The initial equity valuations were based upon a combination of valuation analysis using observable inputs categorized as Level 2 and performing discounted cash flows analysis, using unobservable inputs categorized as Level 3 within the ASC 820 framework.

On May 17, 2018, the Company entered into a Marketing Service Agreement whereby the Company will provide certain marketing services across our digital and live events platforms. As part of the consideration for our marketing services, the Company was provided preferred stock with an aggregate value of $3.2 million.  The  investment represents  a  minority  ownership  position  and  is  accounted  for  under  the  cost  method  of  accounting  and  is recorded  as  an  investment  on  the  Company's Consolidated Balance Sheet as of June 30, 2018.

12

Note 6. Property and Equipment

Property and equipment consisted of the following:

(in thousands)	December 31, 2017			June 30, 2018
Land and improvements	$	20,870		$	20,975
Buildings and leasehold improvements	40,567			41,369
Broadcast equipment	74,851			77,746
Computer and office equipment	13,198			13,951
Furniture and fixtures	13,894			15,624
Transportation equipment	13,509			15,100
Software development costs	15,943			18,704
Total property and equipment, gross	192,832			203,469
Less accumulated depreciation and amortization	(88,802		)	(95,577		)
Total property and equipment, net	$	104,030		$	107,892

Depreciation and amortization expense for property and equipment was $4.6 million and $4.3 million for the three months ended June 30, 2017 and 2018, respectively and $8.8 million and $8.5 million for the six months ended June 30, 2017 and 2018, respectively.

The Company recorded an impairment charge of $25.6 million during the three months ended March 31, 2018 as the Company determined that the carrying value of certain property and equipment assets exceeded their fair market value based on market indicators. This impairment charge has been reclassed as part of net loss from discontinued operations in our Consolidated Statement of Operations for the six months ended June 30, 2018.

Note 7. Goodwill and Other Intangible Assets

Indefinite-lived assets consist of FCC broadcast licenses and goodwill. FCC licenses represent a substantial portion of the Company’s total assets. The FCC licenses are renewable in the ordinary course of business, generally for a maximum of eight years. The fair value of FCC licenses is primarily dependent on the future cash flows of the radio markets and other assumptions, including, but not limited to, forecasted revenue growth rates, profit margins and a risk-adjusted discount rate.

The Company has selected December 31^st as the annual testing date. If market conditions and operational performance of the Company’s reporting units were to deteriorate and management had no expectation that the performance would improve within a reasonable period of time or if an event occurs or circumstances change that would reduce the fair value of its goodwill and intangible assets below the amounts reflected in the balance sheet, the Company may be required to recognize additional impairment charges in future periods.

With the exception of a reclassification as a result of discontinued operations, there were no changes to the carrying value of goodwill for the three and six months ended June 30, 2018. Goodwill was $241.9 million at June 30, 2018.

13

Intangible assets consist of the following:

(in thousands)	Estimated Useful Life	December 31, 2017		June 30, 2018
Intangible Assets:
FCC licenses	Indefinite	$	484,535	$	484,535
Customer and advertising relationships	10 years	14,317		14,317
Leasehold interests	5 to 39 years	1,085		1,085
Tower space	3 to 9 years	454		454
Sports broadcast rights	1 to 2 years	665		665
Non-compete agreements	1 to 2 years	243		243
Trademarks	15 years	8,675		8,675
Other intangibles	3 years	1,141		1,141
Total		511,115		511,115
Less: Accumulated amortization		(15,614)		(16,392		)
Net amount		$	495,501	$	494,723

Amortization expense for definite-lived intangible assets was $0.6 million and $0.4 million for the three months ended June 30, 2017 and 2018, respectively and $1.2 million and $0.8 million for the six months ended June 30, 2017 and 2018, respectively.

The Company recorded an impairment charge of $12.4 million during the three months ended March 31, 2018 as the Company determined that the carrying value of certain intangible assets exceeded their fair market value based on market indicators. This impairment charge has been reclassed as part of net loss from discontinued operations in our Consolidated Statement of Operations for the six months ended June 30, 2018.

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of June 30, 2018 is as follows (in thousands):

2018 (remainder)	$	657
2019	1,313
2020	1,265
2021	1,256
2022	1,253
Thereafter	4,444
	$	10,188

Note 8. Long-Term Debt

Total debt outstanding is summarized as follows:

(in thousands)	December 31, 2017			June 30, 2018
2023 Notes	$	280,079		$	280,079
Term Loans	291,851			282,332
Capitalized obligations	15			12
Debt before deferred financing costs	571,945			562,423
Deferred financing costs	(6,803		)	(5,948		)
Total debt	565,142			556,475
Less: current portion of long-term debt	(9,524		)	(5		)
Total long-term debt	$	555,618		$	556,470

14

On April 1, 2015, the Company issued $300.0 million of 6.5% Unsecured Senior Notes due in 2023 (the "2023 Notes") and a Senior Secured Credit Facility, which includes a seven year, $275.0 million term loan facility (the "Term Loans") and a five year, $50.0 million revolving credit facility (the "Revolver"). Borrowings are guaranteed by each of the Company’s direct and indirect subsidiaries, and subject to certain exceptions, are secured by substantially all of the tangible and intangible assets of the Company and its subsidiaries. On September 1, 2015, the Company issued incremental term loans of $45.0 million under the Senior Secured Credit Facility.        

On February 8, 2017, the Company amended its Senior Secured Credit Facility agreement to reduce the applicable interest rate on its Term Loan. Under the amended Term Loan, the applicable margin was reduced by 25 basis points to 300 basis points. The LIBOR floor of 1.00% remained unchanged. All other terms of the Senior Secured Credit Facility agreement remained substantially unchanged. The Company capitalized $0.4 million of deferred financing costs in connection with this repricing. As of June 30, 2018, the interest rate on the Term Loans was 5.09%. The Revolver has an interest rate based either on LIBOR and an applicable margin of 250 basis points, or an alternative base rate and an applicable margin of 150 basis points. As of June 30, 2018, the Company had no outstanding borrowings under the Revolver.

The 2023 Notes mature on April 1, 2023, with interest payable on April 1 and October 1 of each year. Prior to maturity, the Company may redeem all or part of the 2023 Notes at specified redemption premiums as set forth in the indenture, together with any accrued and unpaid interest thereon. Additionally, if the Company experiences certain change of control events, holders of the 2023 Notes may require the Company to repurchase all or part of their notes at 101% of the principal amount thereof.

The 2023 Notes rank equally with all of the Company's existing and future senior debt, are senior to all of the Company's existing and future subordinated debt and are guaranteed on a senior basis by certain of the Company’s direct and indirect wholly-owned subsidiaries.

The 2023 Notes indenture contains restrictive covenants that limit the ability of the Company and its subsidiaries to, among other things, incur additional debt or issue preferred stock; create liens; create restrictions on the Company’s subsidiaries’ ability to make payments to the Company; pay dividends and make other distributions in respect of the Company’s and its subsidiaries’ capital stock; make certain investments or certain other restricted payments; guarantee indebtedness; designate unrestricted subsidiaries; sell certain kinds of assets; enter into certain types of transactions with affiliates; and effect mergers and consolidations.

The Term Loans mature on April 1, 2022, and the Revolver matures on April 1, 2020. Borrowings under the Senior Secured Credit Facility are subject to mandatory prepayments equal to the net proceeds to the Company of any additional debt issuances or asset sales, as well as half of the annual excess cash flow as defined in the credit agreement (both subject to certain reductions).  At December 31, 2017, we were required to make an excess cash flow payment on the outstanding Term Loans of $9.5 million which was subsequently paid on March 20, 2018. The Company recognized an expense of $0.1 million on the accelerated depreciation of unamortized deferred financing costs in connection with this prepayment in the first quarter of 2018. Borrowings are guaranteed by each of the Company’s direct and indirect subsidiaries, and subject to certain exceptions, are secured by substantially all of the tangible and intangible assets of the Company and its subsidiaries.

The Senior Secured Credit Facility contains covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness or liens; engage in mergers or other fundamental changes; sell certain property or assets; pay dividends or other distributions; make acquisitions, investments, loans and advances; prepay certain indebtedness including the 2023 Notes; change the nature of its business; engage in certain transactions with affiliates and incur restrictions on interactions between the Company and its subsidiaries, or limit actions in relation to the Senior Secured Credit Facility.

The Company is in compliance with its covenants under the 2023 Notes and Senior Secured Credit Facility as of June 30, 2018.

As of June 30, 2018, based on available market information, the estimated fair value of the 2023 Notes and the Term Loans were $255.6 million and $282.0 million, respectively.

15

Annual maturities of the Company's long-term debt as of June 30, 2018 are as follows (in thousands):

2018 (remainder)	$	3
2019	5
2020	5
2021	—
2022	282,332
Thereafter	280,079
	$	562,424

Note 9. Stockholders' Equity

The table below presents a summary, as of June 30, 2018, of our authorized and outstanding common stock, and securities convertible into common stock, excluding options issued under our 2014 Omnibus Incentive Plan.

Security1	Par Value Per Share		Number Authorized	Number Outstanding	Description
Class A common stock	$	0.01	300,000,000	14,248,526	One vote per share.
Class B common stock	$	0.01	50,000,000	3,011,634	10 votes per share.2
Class C common stock	$	0.01	50,000,000	1,636,341	No votes.2
Warrants				8,977,676	Each warrant is exercisable for one share of Class A common stock, at an exercise price of $0.0001 per share. The aggregate exercise price for all warrants currently outstanding is $898.3
Total			400,000,000	27,874,177
1 Each of the shares of common stock, including the shares of Class A common stock issuable upon exercise of the warrants, have equal economic rights.
2 Each share converts into one share of Class A common stock upon transfer or at the option of the holder, subject to certain conditions, including compliance with FCC rules.
3 The warrants are fully vested and exercisable for shares of Class A common stock, subject to certain conditions, including compliance with FCC rules.

The foregoing share totals include 418,037 shares of restricted Class A common stock, subject to vesting terms, but exclude 4,600,049 of Class A common stock and 5,111,236 of Class B common stock issuable upon exercise of stock options, which options have an exercise price of between $6.31 and $10.62 per share. Additionally, the Company is authorized to issue 50,000,000 shares of undesignated preferred stock.    

The Company's common stock is not entitled to preemptive or other similar subscription rights to purchase any of our securities. Unless the Company's Board of Directors determines otherwise, we will issue all of our capital stock in uncertificated form.

On March 12, 2018 the Board of Directors approved its first quarterly dividend of $0.075 per share. The $2.1 million dividend was paid to holders of record as of April 2, 2018 on May 15, 2018. On May 7, 2018, the Board of Directors approved its second quarterly dividend of $0.075 per share. The $2.1 million dividend will be paid to holders of record as of June 28, 2018 on August 15, 2018.

16

Stock-based Compensation    

The Company's 2014 Omnibus Incentive Plan (the "2014 Incentive Plan") provides grants of stock options, stock appreciation rights, restricted stock, other stock-based awards and other cash-based awards. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting or advisory services for the Company, are eligible for grants under the 2014 Incentive Plan. The purpose of the 2014 Incentive Plan is to provide incentives that will attract, retain and motivate high performing officers, directors, employees and consultants by providing them with appropriate incentives and rewards either through a proprietary interest in our long-term success or compensation based on their performance in fulfilling their personal responsibilities. The aggregate number of shares of common stock which may be issued or used for reference purposes under the 2014 Incentive Plan or with respect to which awards may be granted may not exceed 12,000,000 shares. As of June 30, 2018, 1,827,600 shares were available for grant.    

Options granted prior to 2016 vested immediately. Options granted beginning in 2016 generally vest 50% after three years and 50% after four years, with the exception of approximately 1.2 million options issued in 2018 that vest 25% each year over four years. The options have an exercise price of between $6.31 and $10.62 per share. The expected term of each option grant was calculated using the simplified method, defined as the midpoint between the vesting period and the contractual term of each award. The expected volatility was based on market conditions of the Company and comparable companies. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the option. The Company historically had not paid dividends and therefore did not utilize a dividend yield in the calculations, however, beginning with grants made in 2018, we have used an annual dividend of $0.30 per share in our calculations.

The following table summarizes stock option activity for the six months ended June 30, 2018:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at January 1, 2018	8,544,225		$	9.50	6.11	$	—
Granted	1,342,000		6.38
Exercised	—		—
Forfeited	(174,940	)	9.36
Outstanding at June 30, 2018	9,711,285		$	9.07	6.13	$	203,200

Stock-based compensation expense was $0.2 million and $0.3 million for the three months ended June 30, 2017 and 2018, respectively, and $0.4 million and $0.4 million for the six months ended June 30, 2017 and 2018, respectively. As of June 30, 2018, total unrecognized stock-based compensation expense is $7.2 million, including $2.6 million related to restricted stock awards, to be recognized over four or five years.

On May 31, 2018, the Company issued 400,000 shares of restricted stock under the 2014 incentive plan, none of which were vested as of June 30, 2018. At June 30, 2018, there were 418,037 restricted stock shares outstanding with a weighted average grant date fair value per share of $6.38. The fair value of the restricted stock shares is equal to the closing share price on the date of grant. Of the total restricted stock shares outstanding, 400,000 vest 25% each year over four years and the remainder have a five-year vesting term. The Company has aggregate restricted stock share commitments of $0.1 million through 2021.    

Note 10. Income Taxes

The provision for income taxes includes effects from the Tax Cuts and Jobs Act (“TCJA”) for changes that became effective January 1, 2018. We have incorporated provisional estimates for these new TCJA provisions as part of our forecasted annual effective tax rate.  For the period ended June 30, 2018, we have not recorded any adjusted tax impacts with respect to provisional amounts previously recorded at December 31, 2017 for deferred tax balances and the one-time transition tax. We are still refining our calculations and interpreting recent guidance on both the federal and state level which could change these provisional tax amounts. No material changes are anticipated.

17

The Company's effective tax rate for the six months ended June 30, 2017 and 2018 was approximately 41.2% and 27.2%, respectively. The effective tax rate may vary significantly from period to period, and can be influenced by many factors.  These factors include, but are not limited to, changes to the statutory rates in the jurisdictions where the Company has operations and changes in the valuation of deferred tax assets and liabilities.  The difference between the effective tax rate and the federal statutory rate of 21% for the six months ended June 30, 2018 primarily relates to certain non-deductible items under the TCJA provisions and state, local and foreign income taxes.

Note 11. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

(in thousands)	December 31, 2017		June 30, 2018
Accrued compensation and benefits	$	10,629	$	6,594
Accrued professional fees	1,057		869
Accrued commissions	2,010		2,324
Accrued taxes	2,039		2,356
Accrued music and FCC licensing	251		2,003
Accrued publisher fees	2,752		2,652
Accrued national representation fees	947		875
Due to sellers, business combinations	291		3
Deferred rent	1,951		1,923
Dividends payable	—		2,123
Accrued other	2,992		3,750
	$	24,919	$	25,472

Note 12. Lease and Other Commitments

Operating Leases: The Company leases certain facilities and equipment used in its operations. Certain of the Company’s operating leases contain renewal options through 2062, escalating rent provisions and/or cost of living adjustments. Total rental expense was approximately $4.8 million and $4.3 million for the three months ended June 30, 2017 and 2018, respectively and approximately $8.7 million and $8.0 million for the six months ended June 30, 2017 and 2018, respectively. Total rental expense includes costs incurred for live events such as venue and equipment rentals.

At June 30, 2018, the total minimum annual rental commitments under non-cancelable operating leases are as follows (in thousands):

2018 (remainder)	$	4,980
2019	9,236
2020	7,056
2021	5,400
2022	4,401
Thereafter	14,422
Total minimum payments	$	45,495

Other Commitments: The radio broadcast industry’s principal ratings service is Nielsen Holdings N.V. ("Nielsen"), which publishes surveys for domestic radio markets. The Company’s remaining aggregate obligation under the agreements with Nielsen as of June 30, 2018 is approximately $20.7 million and is expected to be paid in accordance with the agreements through September 2021. In addition, the Company has aggregate commitments of $2.3 million for other broadcasting services through December 2019 and aggregate commitments of $11.5 million for a business management platform through 2023.

18

Note 13. Discontinued Operations

During the fourth quarter of 2017, management undertook a corporate strategic review of the Company’s operations and concluded the Company should exit certain live events businesses. These businesses are classified as discontinued operations as they represent separate lines of business and the discontinuation thereof represents a strategic shift towards core business offerings. During the fourth quarter of 2017, management determined that following the completion of contractually committed 2017 events, the live event verticals, Premium Music and Holiday, would be discontinued.

On May 24, 2018, the  Company,  through  its  subsidiary,  Townsquare  Live  Events,  LLC,  sold all of the issued and outstanding membership interests of Heartland Group, LLC and its wholly owned subsidiary NAME to North American Fairs, LLC for total cash consideration of $23.5 million. In addition, Townsquare will have the right to receive 15% of any sales proceeds if NAME is sold in whole or in part within the next ten years. We have historically considered NAME the primary business of our Entertainment reportable segment, consistent with the manner in which the CODM(s) view the business. As the divestiture of the NAME business represents a strategic shift that will have a major effect on the Company’s operations and financial results, NAME's assets, liabilities and financial results are presented as discontinued operations separate from the Company’s continuing operations for all periods presented. We recognized a loss on the sale of NAME of approximately $1.9 million within net loss from discontinued operations and our Entertainment reportable segment will no longer be presented as part of our segment reporting.

On June 29, 2018, the Company entered into an Agreement of Purchase and Sale to transfer it's 70% controlling interest in Mountain Jam, LLC ("Mountain Jam") to Chet-5 Festivals, LLC ("Chet-5"), and to acquire the 30% minority interest in Taste of Country Productions LLC from Chet-5. The purchase and sale included a payment of $1.3 million from the Company to Chet-5. The Company recognized a gain on the sale of Mountain Jam of approximately $1.2 million within net loss from discontinued operations.     

The following table shows the components of assets and liabilities that are related to discontinued operations in the Company's Consolidated Balance Sheets:

(in thousands)	December 31, 2017		June 30, 2018
Cash and cash equivalents	$	4,090	$	228
Accounts receivable	183		18
Prepaid expenses and other current assets	3,828		10
Current assets of discontinued operations	8,101		256
Property and Equipment, net	42,962		—
Intangible assets, net	14,053		—
Other non-current assets	2,463		—
Long term assets of discontinued operations	59,478		—
Accounts payable	1,116		—
Accrued expenses and other current liabilities	1,324		3,038
Current liabilities of discontinued operations	2,440		3,038
Other long-term liabilities	10,682		—
Long term liabilities of discontinued operations	10,682		—
Net assets	$	54,457	$	(2,782	)

19

The following table shows the components of operations that are related to discontinued operations in the Company's Consolidated Statement of Operations:

	Three Months Ended   June 30,						Six Months Ended June 30,
	2017			2018			2017			2018
Net revenue	$23,360			$9,666			$26,848			$15,901
Discontinued operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	25,538			15,856			33,568			27,565
Depreciation and amortization	1,677			437			3,279			2,176
Stock-based compensation	8			4			15			11
Impairment of long lived and intangible assets	—			—			—			37,972
Net loss on sale and retirement of assets	—			423			—			423
Discontinued operating loss	(3,863		)	(7,054		)	(10,014		)	(52,246		)
Other expense:
Interest expense, net	—			—			—			(1		)
Other expense, net	(23		)	12			(26		)	24
Loss from discontinued operations before income taxes	(3,840		)	(7,066		)	(9,988		)	(52,269		)
Benefit from income taxes	(1,603		)	1,375			(4,093		)	(14,436		)
Net loss from discontinued operations	$	(2,237	)	$	(8,441	)	$	(5,895	)	$	(37,833	)

20

Note 14. Net Income (Loss) Per Common Share

The following table sets forth the computations of basic and diluted net income (loss) per share for the three and six months ended June 30, 2017 and 2018.

(in thousands, except per share data)	Three Months Ended   June 30,						Six Months Ended   June 30,
	2017			2018			2017			2018
Numerator:
Net income (loss) from continuing operations	7,800			10,075			8,451			12,877
Net (loss) income from discontinued operations, net of income taxes	(2,237		)	(8,441		)	(5,895		)	(37,833		)
Net income (loss)	$	5,563		$	1,634		$	2,556		$	(24,956	)
Denominator:
Weighted average shares of common stock outstanding	18,470			18,633			18,450			18,563
Effect of dilutive common stock equivalents	9,975			8,978			10,048			8,978
Weighted average diluted common shares outstanding	28,445			27,611			28,498			27,541
Basic income (loss) per share:
Continuing operations	$	0.42		$	0.54		$	0.46		$	0.69
Discontinued operations	(0.12		)	(0.45		)	(0.32		)	(2.04		)
Diluted income per share:
Continuing operations	$	0.27		$	0.36		$	0.30		$	0.47
Discontinued operations	(0.08		)	(0.31		)	(0.21		)	$	(1.37	)

21

Note 15. Subsequent Events

Dividend

On August 7, 2018 the Board of Directors approved a dividend of $0.075 per share. The dividend will be paid to holders of record as of September 27, 2018. The estimated $2.1 million dividend will be paid on November 15, 2018.

Option Exchange

On July 18, 2018, the Company commenced an offer to eligible executive officers, employees and directors to exchange certain outstanding eligible options to purchase shares of our common stock for new options covering a lesser number of shares of our common stock exercisable at a lower price. The exchange offer is expected to result in the grant of replacement options with a fair value, for accounting purposes, that is approximately equal to the fair value of the eligible options that are surrendered in the exchange offer.

The exchange offer is not a one-for-one exchange, which means eligible individuals will not receive one replacement option for every eligible option surrendered in the exchange offer. The number of replacement options to be granted in exchange for each eligible option surrendered depends on the grant date and exercise price of the surrendered option. The exchange offer is expected to expire on August 16, 2018.

Acquisitions

On March 21, 2018, the Company entered into an asset purchase agreement to acquire three radio stations in Princeton, NJ from Connoisseur Media, LLC for $17.3 million. The acquired assets included WPST-FM, WNJE-AM and WCHR-AM. The acquisition closed on July 2, 2018 and the consideration was paid with cash on hand.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following management’s discussion and analysis is intended to provide the reader with an overall understanding of our financial condition, results of operations, cash flows and sources and uses of cash. This section also includes general information about our business and a discussion of our management’s analysis of certain trends, risks and opportunities in our industry. In addition, we also provide a discussion of accounting policies that require critical judgments and estimates as well as discuss certain risks and uncertainties that could cause our actual future results to differ materially from our historical results or our current expectations. This discussion should be read in conjunction with our unaudited consolidated financial statements and related notes appearing elsewhere in this quarterly report. The following discussion contains forward-looking statements that involve numerous risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements as a result of these risks and uncertainties, including those set forth in this quarterly report.

Note About Forward-Looking Statements

This report includes estimates, projections, statements relating to our business plans, objectives and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act. Forward-looking statements often discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “believe,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other words and terms. Actual events or results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by us include the impact of general economic conditions in the United States or Canada, or in the specific markets in which we currently do business, industry conditions, including existing competition and future competitive technologies, the popularity of radio as a broadcasting and advertising medium, cancellations, disruptions or postponements of advertising schedules in response to national or world events, our dependence on key personnel, our capital expenditure requirements, our continued ability to identify suitable acquisition targets, and consummate and integrate any future acquisitions, legislative or regulatory requirements, risks and uncertainties relating to our leverage and changes in interest rates, our ability to obtain financing at times, in amounts

22

and at rates considered appropriate by us, our ability to access the capital markets as and when needed and on terms that we consider favorable to us and other factors discussed in this section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report and under “Risk Factors” in our 2017 Annual Report on Form 10-K, as well as other risks discussed from time to time in our filings with the SEC. Many of these factors are beyond our ability to predict or control. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future performance. The cautionary statements referred to in this section also should be considered in connection with any subsequent written or oral forward-looking statements that may be issued by us or persons acting on our behalf. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Discontinued Operations

On May 24, 2018, the  Company,  through  a  subsidiary  of  Townsquare  Live  Events,  LLC,  sold all of the issued and outstanding membership interests of Heartland Group, LLC and its wholly owned subsidiary NAME ("NAME") to North American Fairs. LLC for $23.5 million. In addition, on June 29, 2018, the Company entered into an Agreement of Purchase and Sale to transfer it's 70% controlling interest in Mountain Jam, LLC ("Mountain Jam") to Chet-5 Festivals ("Chet-5"), LLC and to acquire the 30% minority interest in Taste of Country Productions LLC from Chet-5. Refer to Note 13 in the accompanying Consolidated Financial Statements for additional information.

Format of Presentation

Townsquare is a radio, digital media, entertainment and digital marketing solutions company principally focused on being the premier local advertising and marketing solutions platform in small and mid-sized markets across the United States. Our assets include market leading radio stations, live events, and digital, mobile, video and social media properties. Our integrated and diversified product and service offerings, which we refer to as Townsquare Everywhere, enable local, regional and national advertisers to target audience engagement across multiple platforms, including on-air, online and at live events. We believe our Townsquare Everywhere capabilities, combined with our leading market position in small and mid-sized markets, enable us to generate higher total net revenue per audience member than radio station owners focused on larger markets.

Townsquare owns and operates 320 radio stations and over 330 local websites serving 67 small and mid-sized markets, a digital marketing solutions company, a digital programmatic advertising platform and an e-commerce offering. Almost all of our radio stations have local companion websites that utilize the station brands and are populated with proprietary, original content created or curated by our local media personalities. In addition, Townsquare owns and operates a diverse range of live events which we create, promote and produce. This includes festivals, concerts, expositions and other experiential events within and beyond our markets.

Our primary sources of net revenue are the sale of advertising on our radio stations, owned and operated websites, radio stations’ online streams and mobile applications. Our sales of advertisements are primarily affected by the demand for advertising from local, regional and national advertisers and the advertising rates we charge. Advertising demand and rates are based primarily on our ability to attract audiences to our various products in the demographic groups targeted by advertisers, as measured principally by various services on a periodic basis. We endeavor to develop strong audience loyalty and believe that the diversification of formats on our radio stations and websites helps to insulate our radio stations and websites from the effects of changes in musical tastes of the public with respect to any particular format. We believe that the sale of our online and mobile advertisements, which currently have rates per advertisement that are less than those of terrestrial radio advertisements, has not negatively impacted our terrestrial radio advertising net revenue. Should a significant and sudden shift in demand for these products toward online and mobile occur, there could be a material adverse impact on our financial condition and results of operations if we are unable to increase rates accordingly. However, we believe that as a result of our strong brands and quality online and mobile offerings we are well positioned to increase rates as demand increases for these products.

In addition, we offer precision customer targeting solutions to advertisers through Townsquare Ignite, our digital programmatic advertising platform. Combining first and third party audience and geographic location data, Ignite is able to hyper-target audiences for our local, regional and national advertisers, providing them the ability to reach a high percentage of their online audience. Ignite delivers these solutions across desktop, mobile, connected TV, email, paid search and social media platforms utilizing display, video and native executions.

23

We also offer digital marketing solutions, on a subscription basis, to small and mid-sized local and regional businesses in small and mid-sized markets across the United States, including the markets in which we operate radio stations. Our digital marketing solutions, offered under the brand name Townsquare Interactive, include traditional and mobile-enabled website development and hosting services, e-commerce platforms, search engine and online directory optimization services, online reputation management and social media management.

Our primary source of live events net revenue is ticket sales Our live events also generate substantial net revenue through the sale of sponsorships, food and other concessions, merchandise and other ancillary products and services. Live event ticket pricing is based on consumer demand for each event and the geographic location and target audience demographic of each event. Unforeseen events such as inclement weather conditions can have an adverse impact on our net revenue. In certain cases, we mitigate this risk with insurance policies, which cover a portion of lost revenue as a result of unforeseen events including inclement weather.

We strive to maximize our net revenue by managing our advertising inventory and adjusting prices based on supply and demand and by broadening our base of advertisers and subscribers. Our selling and pricing activity is based on demand for our advertising inventory and, in general, we respond to this demand by varying prices rather than by varying our target inventory levels. The optimal number of advertisements available for sale depends on the platform and in the case of our radio stations, their online streams, mobile applications and the programming format of a particular radio station. Each of our advertising products has a general target level of available inventory. We seek to broaden our base of advertisers in each of our markets by providing a wide array of audience demographic segments across our platforms, thereby providing each of our potential advertisers with an effective means of reaching a targeted demographic group.

Our advertising contracts are generally short-term. In the media industry, companies, including ours, sometimes utilize barter agreements that exchange advertising time for goods or services such as travel or lodging, instead of cash.

Our most significant expenses are sales, programming, digital, marketing and promotional, engineering, and general and administrative expenses. We strive to control these expenses by closely monitoring and managing each of our local markets and through efficiencies gained from the centralization of finance, accounting, legal and human resources functions and management information systems. We also use our scale and diversified geographic portfolio to negotiate favorable rates with vendors where feasible.

A portion of our expenses are variable. These variable expenses primarily relate to sales costs, such as commissions, as well as certain programming costs, such as music license fees and certain costs related to production. Marketing and promotions expenses are discretionary and are primarily incurred in an effort to maintain and/or increase our audience share. Other programming, digital, engineering and general and administrative expenses are primarily fixed costs.     

Seasonality

Our net revenue varies throughout the year. We expect that our first calendar quarter will produce the lowest net revenue for the year, as advertising expenditures generally decline following the winter holidays, and the second and third calendar quarters will generally produce the highest net revenue for the year. During even-numbered years, net revenue generally includes increased advertising expenditures by political candidates, political parties and special interest groups. Political spending is typically highest during the fourth quarter. In addition to advertising revenue seasonality, our live events net revenue exhibits seasonality resulting in the second quarter being the highest revenue period. The most significant driver of seasonality in live events net revenue is our multi-day music festivals which are predominately in the second and third quarter. Our operating results in any period may be affected by the incurrence of advertising and promotion expenses that typically do not have an effect on net revenue generation until future periods, if at all.

Macroeconomic Indicators

Our advertising revenue for our businesses may be highly correlated to changes in gross domestic product (“GDP”), as advertising spending has historically trended in line with, and in our experience often lags, changes in GDP. According to the U.S. Department of Commerce estimate as of July 27, 2018, U.S. GDP grew at an annual rate of 4.1% in the second quarter of 2018.

Emerging Growth Company

24

The Company is an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"), and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, and exemptions from the requirements of Sections 14A(a) and (b) of the Securities Exchange Act to hold a non-binding advisory vote of stockholders on executive compensation and any golden parachute payments not previously approved.

Executive Summary

The key developments in our business for the three months ended June 30, 2018, as compared to the same period in 2017 are summarized below:

• Net revenue for the three months ended June 30, 2018 increased $2.3 million, or 1.9%.

• Excluding political revenue, net revenue for the three months ended June 30, 2018 increased $1.5 million, or 1.3%.

The key developments in our business for the six months ended June 30, 2018, as compared to the same period in 2017 are summarized below:

• Net revenue for the six months ended June 30, 2018 increased $5.3 million, or 2.6%.

• Excluding political revenue, net revenue for the six months ended June 30, 2018 increased $4.3 million, or 2.2%.

25

Consolidated Results of Operations

Three Months Ended June 30, 2017 compared to Three Months Ended June 30, 2018

The following table summarizes our historical consolidated results of operations:

($ in thousands)	Three Months Ended   June 30,
Statement of Operations Data:	2017			2018			$ Change			% Change
Net revenue	$	117,303		$	119,577		$	2,274		1.9	%
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	83,186			84,434			1,248			1.5	%
Depreciation and amortization	5,158			4,628			(530		)	(10.3	)%
Corporate expenses	6,635			7,290			655			9.9	%
Stock-based compensation	175			246			71			40.6	%
Transaction costs	189			677			488			258.2	%
Net loss (gain) on sale and retirement of assets	716			(76		)	(792		)	(110.6	)%
Total operating costs and expenses	96,059			97,199			1,140			1.2	%
Operating income	21,244			22,378			1,134			5.3	%
Other expenses:
Interest expense, net	7,990			8,532			542			6.8	%
Other expense, net	40			48			8			20.0	%
Income from continuing operations before income taxes	13,214			13,798			584			4.4	%
Provision for income taxes	5,414			3,723			(1,691		)	(31.2	)%
Net income from continuing operations	7,800			10,075			2,275			29.2	%
Net loss from discontinued operations, net of income taxes	(2,237		)	(8,441		)	(6,204		)	277.3	%
Net income	$	5,563		$	1,634		$	(3,929	)	(70.6	)%
**Percent change not meaningful.

Net Revenue

Net revenue for the three months ended June 30, 2018 increased by $2.3 million, or 1.9%, as compared to the same period in 2017. The increase was primarily driven by revenue gains in our digital programmatic and digital marketing solutions offerings, and political, partially offset by budgeted declines in our live events business.

Direct Operating Expenses

Direct operating expenses for the three months ended June 30, 2018 increased by $1.2 million, or 1.5%, as compared to the same period in 2017. The increase was primarily driven by investments in headcount related expenses to support the growth of our digital programmatic and digital marketing solutions offerings.

Depreciation and Amortization

Depreciation and amortization expense for the three months ended June 30, 2018 decreased $0.5 million, or 10.3%, as compared to the same period in 2017, primarily as a result of timing of capital expenditure purchases.

26

Corporate Expenses

Corporate expense for the three months ended June 30, 2018 increased $0.7 million, or 9.9%, as compared to the same period in 2017, primarily as a result increases in headcount expenses mostly resulting from job changes from personnel previously classified as direct operating expenses in 2017.

Stock-based Compensation

Stock-based compensation expense for the three months ended June 30, 2018 increased $0.1 million, or 40.6%, as compared to the same period in 2017, due to new option and restricted stock grants.

Transaction Costs

Transaction costs for the three months ended June 30, 2018 increased $0.5 million, or 258.2%, as compared to the same period in 2017, primarily due to the costs associated with our acquisition of 3 radio stations in Princeton, NJ from Connoisseur Media, LLC.

Net Loss (Gain) on Sale and Retirement of Assets

During the three months ended June 30, 2018 the Company had a $0.1 million gain on the sale and retirement of assets, as compared to a loss of $0.7 million in the same period in 2017. The change primarily relates to insurance proceeds received for damaged assets.

Other Expense

Interest expense, net is the major recurring component of other expense. Interest expense, net increased $0.5 million, or 6.8%, in the three months ended June 30, 2018, as compared to the same period in 2017, primarily due to an increase in LIBOR rates, partially offset by a lower term loan balance.

The following table illustrates the components of our interest expense, net for the periods indicated.

	Three Months Ended   June 30,
	2017		2018
(in thousands)
2023 Notes	$	4,551	$	4,551
Term Loans	3,056		3,605
Capital loans and other	2		3
Loan origination costs	381		379
Interest income	0		(6)
Interest expense, net	$	7,990	$	8,532

Provision for income taxes

We recognized a provision for income taxes of $3.7 million for the three months ended June 30, 2018. Our effective tax rate for the period was approximately 27.0%. Our effective tax rate may vary significantly from period to period and can be influenced by many factors.  These factors include, but are not limited to, changes to statutory rates in the jurisdictions where we have operations and changes in the valuation of deferred tax assets and liabilities.  The difference between the effective tax rate and the federal statutory rate of 21% for the three months ended June 30, 2018 primarily relates to certain non-deductible items under the TCJA provisions and state, local and foreign income taxes.

27

Six Months Ended June 30, 2017 compared to Six Months Ended June 30, 2018

The following table summarizes our historical consolidated results of operations:

($ in thousands)	Six Months Ended June 30,
Statement of Operations Data:	2017			2018			$ Change			% Change
Net revenue	$	202,232		$	207,568		$	5,336		2.6	%
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	148,167			149,790			1,623			1.1	%
Depreciation and amortization	9,946			9,229			(717		)	(7.2	)%
Corporate expenses	11,984			12,939			955			8.0	%
Stock-based compensation	356			436			80			22.5	%
Transaction costs	389			837			448			115.2	%
Net loss (gain) on sale and retirement of assets	715			(398		)	(1,113		)	(155.7	)%
Total operating costs and expenses	171,557			172,833			1,276			0.7	%
Operating income	30,675			34,735			4,060			13.2	%
Other expenses:
Interest expense, net	16,243			16,960			717			4.4	%
Other expense, net	75			80			5			6.7	%
Income from continuing operations before income taxes	14,357			17,695			3,338			23.2	%
Provision for income taxes	5,906			4,818			(1,088		)	(18.4	)%
Net income from continuing operations	8,451			12,877			4,426			52.4	%
Net loss from discontinued operations, net of income taxes	(5,895		)	(37,833		)	(31,938		)	(541.8	)%
Net income (loss)	$	2,556		$	(24,956	)	$	(27,512	)	(1,076.4	)%
**Percent change not meaningful.

Net Revenue

Net revenue for the six months ended June 30, 2018 increased by $5.3 million, or 2.6%, as compared to the same period in 2017. The increase was primarily driven by revenue gains in our digital programmatic and digital marketing solutions offerings, and political, partially offset by budgeted declines in our live events business.

Direct Operating Expenses

Direct operating expenses for the six months ended June 30, 2018 increased by $1.6 million, or 1.1%, as compared to the same period in 2017. The increase was primarily driven by investments in headcount related expenses to support the growth of our digital programmatic and digital marketing solutions offerings.

Depreciation and Amortization

Depreciation and amortization expense for the six months ended June 30, 2018 decreased $0.7 million, or 7.2%, as compared to the same period in 2017, primarily as a result of timing of capital expenditure purchases.

Corporate Expenses

Corporate expense for the six months ended June 30, 2018 increased $1.0 million, or 8.0%, as compared to the same period in 2017, primarily as a result increases in headcount expenses mostly resulting from job changes from personnel previously classified as direct operating expenses in 2017.

28

Stock-based Compensation

Stock-based compensation expense six months ended June 30, 2018 increased $0.1 million, or 22.5%, as compared to the same period in 2017, due to new option and restricted stock grants.

Transaction Costs

Transaction costs for six months ended June 30, 2018 increased $0.4 million or 115.2% as compared to the same period in 2017, primarily due to the costs associated with our acquisition of 3 radio stations in Trenton, NJ from Connoisseur Media, LLC.

Net Loss (Gain) on Sale and Retirement of Assets

During the six months ended June 30, 2018 the Company had a $0.4 million gain on the sale and retirement of assets, as compared to a loss of $0.7 million in the same period in 2017. The net gain primarily resulted from the sale of certain live events assets that had been categorized as held for sale at December 31, 2017 and insurance proceeds received for damaged assets.

Other Expense

Interest expense, net is the major recurring component of other expense. Interest expense, net increased $0.7 million, or 4.4%, in the six months ended June 30, 2018, as compared to the same period in 2017, primarily due to an increase in LIBOR rates, partially offset by a lower term loan balance.

The following table illustrates the components of our interest expense, net for the periods indicated.

	Six Months Ended June 30,
(in thousands)	2017			2018
2023 Notes	$	9,103		$	9,103
Term Loans	6,203			7,006
Capital loans and other	4			5
Loan origination costs	934			858
Interest income	(1		)	(12		)
Interest expense, net	$	16,243		$	16,960

Provision for income taxes

We recognized a provision for income taxes of $4.8 million for the six months ended June 30, 2018. Our effective tax rate for the period was approximately 27.2%. Our effective tax rate may vary significantly from period to period, and can be influenced by many factors.  These factors include, but are not limited to, changes to statutory rates in the jurisdictions where we have operations and changes in the valuation of deferred tax assets and liabilities.  The difference between the effective tax rate and the federal statutory rate of 21% for the six months ended June 30, 2018 primarily relates to state, local and foreign income taxes.

Liquidity and Capital Resources

	Six Months Ended   June 30,
(in thousands)	2017			2018
Cash provided by operating activities	$	1,427		$	1,234
Cash (used in) provided by investing activities	(14,469		)	12,031
Cash used in financing activities	(7,448		)	(12,118		)
Net effect of foreign currency exchange rate changes	22			92
Net (decrease) increase in cash and restricted cash	$	(20,468	)	$	1,239

We fund our working capital requirements through a combination of cash flows from our operating, investing and financing activities. Based on current and anticipated levels of operations and conditions in our markets and industry,

29

we believe that our cash on hand and cash flows from our operating, investing and financing activities, together with funds available under our revolving credit facility, will enable us to meet our working capital, capital expenditures, debt service, dividend and other funding requirements for at least one year from the date of this report. As of June 30, 2018, we had $556.5 million of outstanding indebtedness, net of deferred financing costs of $5.9 million. Based on interest rates in effect as of June 30, 2018, we expect our debt service requirements to be approximately $34.4 million over the next twelve months. In addition, as of June 30, 2018 we had $62.4 million of cash and restricted cash, $67.1 million of receivables from customers, which historically have had an average collection cycle of approximately 58 days, and $50.0 million of available borrowing capacity under our revolving credit facility. We had restricted cash of $0.9 million at December 31, 2017 and June 30, 2018, respectively, included within cash, that was held as collateral in connection with certain agreements. From time to time, such restricted funds could be returned to us or we could be required to pledge additional cash.

Our anticipated uses of cash in the near term include working capital needs, debt payments, dividend payments, other obligations, and capital expenditures. However, our ability to fund our working capital needs, debt payments, dividend payments, other obligations, capital expenditures, and to comply with financial covenants under our debt agreements, depends on our future operating performance and cash flow, which are in turn subject to prevailing economic conditions, increases or decreases in advertising spending, changes in the highly competitive industry in which we operate, which may be rapid, and other factors, many of which are beyond our control.

Additionally, on a continuing basis, we evaluate and consider strategic acquisitions and divestitures to enhance our strategic and competitive position as well as our financial performance. Any future acquisitions, joint ventures or other similar transactions may require additional capital, which may not be available to us on acceptable terms, if at all.

We closely monitor the impact of capital and credit market conditions on our liquidity as related to our floating rate debt. We also routinely monitor the changes in the financial condition of our customers and the potential impact on our results of operations.

Cash Flows from Operating Activities

Net cash provided by operating activities increased $0.2 million to $1.2 million for the six months ended June 30, 2018, from $1.4 million for the six months ended June 30, 2017. This increase was primarily due to the increases in accounts payable as a result of timing of payments.

Cash Flows from Investing Activities

Net cash provided by investing activities increased $26.5 million to $12.0 million for the six months ended June 30, 2018, as compared to a net cash use of $14.5 million for the same period in 2017, primarily due to proceeds received on the sale of NAME.

Cash Flows from Financing Activities

Net cash used in financing activities increased $4.7 million to $12.1 million for the six months ended June 30, 2018, as compared to $7.4 million for the same period in 2017. This change was driven by a $2.9 million increase in the excess cash flow payment on our outstanding Term Loan, as well as a $2.1 million dividend payment made during the six months ended June 30, 2018.

Financing Arrangements

On April 1, 2015, the Company issued $300.0 million of 6.5% Unsecured Senior Notes due in 2023 and entered into a Senior Secured Credit Facility, including a seven year, $275.0 million term loan facility and a five year, $50.0 million revolving credit facility. On September 1, 2015, the Company issued incremental term loans of $45.0 million under the Senior Secured Credit Facility.

On February 8, 2017, the Company amended its Senior Secured Credit Facility agreement to reduce the applicable interest rate on its Term Loan. Under the amended Term Loan, the applicable margin was reduced by 25 basis points to 300 basis points, bringing the interest rate to LIBOR plus 3.00% from LIBOR plus 3.25%. The LIBOR floor of 1.00% remained unchanged. All other terms of the Senior Secured Credit Facility agreement remained substantially unchanged. The Company paid $0.4 million of deferred financing costs in connection with this repricing. As of June 30, 2018, LIBOR increased to 2.09% bringing the interest rate to 5.09%. The Revolver has an interest rate

30

based either on LIBOR and an applicable margin of 250 basis points, or an alternative base rate and an applicable margin of 150 basis points.

The Company made an excess cash flow payment on its outstanding Term Loan of $6.7 million and $9.5 million during the six months ended June 30, 2017 and 2018, respectively.

As of June 30, 2018, the Company had $282.3 million of Term Loan borrowings, and no outstanding borrowings under the Revolver. As of June 30, 2018, the Company is in compliance with all terms and covenants of its borrowing arrangements, and has $50 million of revolving credit availability under the Senior Secured Credit Facility.

We have historically serviced our debt obligations from funds generated by operating activities. We believe that our cash balance, together with our remaining capacity under the Revolver and cash generated by operating activities, will be sufficient to fund our operations, service our debt obligations and pursue our strategy for one year from the date of this report.

Off-Balance Sheet Arrangements

We have no material off-balance sheet arrangements or transactions.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, we evaluate our significant estimates, including those related to bad debts, intangible assets, income taxes, contingencies and purchase price allocations. We base our estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the result of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts and results may differ materially from these estimates under different assumptions or conditions.

We believe the accounting policies and estimates discussed within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2017 Annual Report on Form 10-K reflects our more significant judgments and estimates used in the preparation of the consolidated financial statements. There have been no material changes to the critical accounting policies and estimates as filed in such report.

Recent Accounting Standards

For a discussion of accounting standards updates that have been adopted or will be adopted in the future, please refer to Note 2 of the Notes to Unaudited Consolidated Financial Statements included under Item 1.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The following discussion should be read together with our unaudited consolidated financial statements and related notes to unaudited consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, as well as those discussed within our audited consolidated financial statements and related notes to audited consolidated financial statements included in our 2017 Annual Report on Form 10-K.

Interest Rate Risk

As of June 30, 2018, we were not subject to market risk from exposure to changes in interest rates with respect to borrowings under our existing 2023 Notes.

As of June 30, 2018, we were subject to market risk from exposure to changes in interest rates on borrowings under our Senior Secured Credit Facility, specifically the impact of LIBOR interest rates on our variable rate borrowings. Based upon our June 30, 2018 outstanding term loan borrowings of $282.3 million under the Senior Secured Credit Facility, an increase in the LIBOR interest rate of 1% would result in an increase in our annual interest expense of approximately $2.8 million. We anticipate such interest rate risk will remain a market risk exposure for the foreseeable future.

31

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act, that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to a company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

In designing and evaluating the disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Furthermore, our controls and procedures can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the control, and misstatements due to error or fraud may occur and not be detected on a timely basis.

Our management, with the participation of our Co-Chief Executive Officers and our Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2018, the end of the period covered by this Quarterly Report on Form 10-Q. Based upon such evaluation, our Co-Chief Executive Officers and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of such date.

Changes in Internal Controls

Beginning January 1, 2018, we implemented ASU 2014-09, Revenue from Contracts with Customers (Topic 606). There were no significant changes made to our accounting policies and procedures as a result of the implementation. Internal control changes necessary to implement the standard have been evaluated and implemented where applicable.

32

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

In the normal course of business, the Company is subject to various regulatory proceedings, lawsuits, claims and other matters related to intellectual property, personal injury, employee, or other matters. These matters are subject to many uncertainties and outcomes are not predictable with assurance. However, we do not believe that the ultimate resolution of these matters will have a material adverse effect on our financial position or results of operations.

Item 1A. Risk Factors

Please refer to Part I, Item 1A, “Risk Factors,” in our 2017 Annual Report on Form 10-K for information regarding known material risks that could affect our results of operations, financial condition and liquidity. In addition to these risks, other risks that we presently do not consider material, or other unknown risks, could materially adversely impact our business, financial condition and results of operations in a future period.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6. Exhibits

See Exhibit Index.

33

EXHIBIT INDEX

Exhibit	Description
10.1*	Letter Agreement between Townsquare Media, Inc. and Bill Wilson, dated April 27, 2018
10.2**	Restricted Stock Award Agreement between Townsquare Media, Inc. and Bill Wilson, dated May 31, 2018
10.3***	Agreement of Purchase and Sale by and among North American Fairs, LLC, Townsquare Live Events, and Danny Huston, dated May 24, 2018
31.1	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
31.2	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
31.3	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
32.1	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350
32.2	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350
32.3	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
* Previously filed as an exhibit to our Current Report on Form 8-K filed on May 3, 2018.
** Previously filed as an exhibit to our Current Report on Form 8-K filed on June 4, 2018.
*** Previously filed as an exhibit to our Current Report on Form 8-K filed on May 29, 2018.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TOWNSQUARE MEDIA, INC.
By:	/s/ Stuart Rosenstein
	Name: Stuart Rosenstein
	Title: Executive Vice President & Chief Financial Officer

Date: August 8, 2018

34

EX-31.1

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF

THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Stuart Rosenstein, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Townsquare Media, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of 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 officers 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 officers 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.

Dated: August 8, 2018	By:	/s/ Stuart Rosenstein
		Name: Stuart Rosenstein
		Title: Executive Vice President and Chief Financial Officer

EX-31.2

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF

THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Bill Wilson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Townsquare Media, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of 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 officers 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 officers 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.

Dated: August 8, 2018	By:	/s/ Bill Wilson
		Name: Bill Wilson
		Title: Co-Chief Executive Officer

EX-31.3

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a) OR 15d-14(a) OF

THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Dhruv Prasad, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Townsquare Media, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of 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 officers 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 officers 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.

Dated: August 8, 2018	By:	/s/ Dhruv Prasad
		Name: Dhruv Prasad
		Title: Co-Chief Executive Officer

EX-32.1

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Townsquare Media, Inc. (the “Company”) for the three months ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stuart Rosenstein, as Executive Vice President and Chief Financial Officer of Townsquare Media, Inc., hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Townsquare Media, Inc.

Dated: August 8, 2018	/s/ Stuart Rosenstein
	Name: Stuart Rosenstein
	Title: Executive Vice President and Chief Financial Officer

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of Townsquare Media, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.     

EX-32.2

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Townsquare Media, Inc. (the "Company") for the three months ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Bill Wilson, as Co-Chief Executive Officer of Townsquare Media, Inc., hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 8, 2018	/s/ Bill Wilson
	Name: Bill Wilson
	Title: Co-Chief Executive Officer

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of Townsquare Media, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.            

EX-32.3

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Townsquare Media, Inc. (the "Company") for the three months ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dhruv Prasad, as Co-Chief Executive Officer of Townsquare Media, Inc., hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Townsquare Media, Inc.

Dated: August 8, 2018	/s/ Dhruv Prasad
	Name: Dhruv Prasad
	Title: Co-Chief Executive Officer

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of Townsquare Media, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.            

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 07, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Registrant Name	Townsquare Media, Inc.
Entity Central Index Key	0001499832
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Class A common stock
Entity Common Stock, Shares Outstanding (in shares)		14,248,526
Class B common stock
Entity Common Stock, Shares Outstanding (in shares)		3,011,634
Class C common stock
Entity Common Stock, Shares Outstanding (in shares)		1,636,341

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 62,444	$ 61,205
Accounts receivable, net of allowance of $1,079 and $1,735, respectively	67,122	61,558
Prepaid expenses and other current assets	10,670	7,540
Current assets held for sale	0	879
Current assets of discontinued operations	256	7,222
Total current assets	140,492	138,404
Property and equipment, net	107,892	104,030
Intangible assets, net	494,723	495,501
Goodwill	241,888	241,888
Investments	11,292	8,092
Other assets	11,258	8,965
Long-term assets of discontinued operations	0	59,478
Total assets	1,007,545	1,056,358
Current liabilities:
Accounts payable	19,478	13,442
Current portion of long-term debt	5	9,524
Deferred revenue	12,248	17,281
Accrued expenses and other current liabilities	25,472	24,919
Accrued interest	4,631	5,699
Current liabilities of discontinued operations	3,038	2,440
Total current liabilities	64,872	73,305
Long-term debt, less current portion (net of deferred finance costs of $6,803 and $5,948, respectively)	556,470	555,618
Deferred tax liability	26,887	26,283
Other long-term liabilities	8,975	9,390
Long-term liabilities of discontinued operations	0	10,682
Total liabilities	657,204	675,278
Stockholders’ equity:
Common stock	185	185
Additional paid-in capital	363,817	367,041
Retained earnings (deficit)	(14,158)	13,265
Accumulated other comprehensive loss	0	(532)
Non-controlling interest	497	1,121
Total stockholders’ equity	350,341	381,080
Total liabilities and stockholders’ equity	1,007,545	1,056,358
Class A common stock
Stockholders’ equity:
Common stock	138	138
Class B common stock
Stockholders’ equity:
Common stock	30	30
Class C common stock
Stockholders’ equity:
Common stock	$ 17	$ 17

XML

Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 1,735	$ 1,079
Long-term debt, less current portion (net of deferred finance costs of $6,803 and $5,948, respectively)	$ (5,948)	$ (6,803)
Common shares authorized (in shares)	400,000,000
Class A common stock
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	300,000,000	300,000,000
Common shares issued (in shares)	14,248,526	13,819,639
Common shares outstanding (in shares)	14,248,526	13,819,639
Class B common stock
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares issued (in shares)	3,011,634	3,022,484
Common shares outstanding (in shares)	3,011,634	3,022,484
Class C common stock
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares issued (in shares)	1,636,341	1,636,341
Common shares outstanding (in shares)	1,636,341	1,636,341

XML

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net revenue	$ 119,577	$ 117,303	$ 207,568	$ 202,232
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	84,434	83,186	149,790	148,167
Depreciation and amortization	4,628	5,158	9,229	9,946
Corporate expenses	7,290	6,635	12,939	11,984
Stock-based compensation	246	175	436	356
Transaction costs	677	189	837	389
Net loss (gain) on sale and retirement of assets	(76)	716	(398)	715
Total operating costs and expenses	97,199	96,059	172,833	171,557
Operating income	22,378	21,244	34,735	30,675
Other expense:
Interest expense, net	8,532	7,990	16,960	16,243
Other expense, net	48	40	80	75
Income from continuing operations before income taxes	13,798	13,214	17,695	14,357
Provision from income taxes	3,723	5,414	4,818	5,906
Net income from continuing operations	10,075	7,800	12,877	8,451
Net loss from discontinued operations, net of income taxes	(8,441)	(2,237)	(37,833)	(5,895)
Net income (loss)	1,634	5,563	(24,956)	2,556
Net income (loss) attributable to:
Controlling interests	1,335	5,137	(25,510)	2,106
Non-controlling interests	$ 299	$ 426	$ 554	$ 450
Basic income (loss) per share:
Continuing operations (in dollars per share)	$ 0.54	$ 0.42	$ 0.69	$ 0.46
Discontinued operations (in dollars per share)	(0.45)	(0.12)	(2.04)	(0.32)
Diluted income (loss) per share:
Continuing operations (in dollars per share)	0.36	0.27	0.47	0.30
Discontinued operations (in dollars per share)	$ (0.31)	$ (0.08)	$ (1.37)	$ (0.21)
Weighted average shares outstanding:
Basic (in shares)	18,633	18,470	18,563	18,450
Diluted (in shares)	27,611	28,445	27,541	28,498
Cash dividends declared per share (in dollars per share)	$ 75.000	$ 0	$ 150	$ 0

XML

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,634	$ 5,563	$ (24,956)	$ 2,556
Other comprehensive income (loss):
Foreign currency translation adjustments	658	57	532	114
Comprehensive income (loss) attributable to controlling interest	2,292	5,620	(24,424)	2,670
Less: Comprehensive income attributable to noncontrolling interest	299	426	554	450
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent	$ 1,993	$ 5,194	$ (24,978)	$ 2,220

XML

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands		Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive Loss	Non- Controlling Interest	Class A common stock	Class B common stock	Class C common stock	Warrants
Increase (Decrease) in Stockholders' and Members' Equity [Roll Forward]
Impact of change in accounting policy	[1]	$ 2,271			$ 2,271
Stockholders' equity adjusted, beginning balance		383,351	$ 185	$ 367,041	15,536	$ (532)	$ 1,121
Common shares outstanding, beginning balance (in shares) at Dec. 31, 2017								13,819,639	3,022,484	1,636,341
Warrants outstanding, beginning balance (in shares) at Dec. 31, 2017											8,977,676
Stockholders' equity, beginning balance at Dec. 31, 2017		381,080	185	367,041	13,265	(532)	1,121
Increase (Decrease) in Stockholders' and Members' Equity [Roll Forward]
Net (loss) income		(24,956)			(25,510)		554
Dividends declared		(4,184)			(4,184)
Acquisition of non-controlling interests (in shares)								0
Acquisition of non-controlling interests		(4,316)		(3,671)			(645)
Conversion of common shares (in shares)								10,850	(10,850)
Proceeds from sale of minority interest in subsidiary		0
Stock options exercised		0
Stock-based compensation		447		447
Issuance of restricted stock (in shares)								418,037
Disposal of subsidiary		637				656	(19)
Foreign currency exchange		(124)				(124)
Cash distributions to non-controlling interests		(514)					(514)
Common shares outstanding, ending balance (in shares) at Jun. 30, 2018								14,248,526	3,011,634	1,636,341
Warrants outstanding, ending balance (in shares) at Jun. 30, 2018											8,977,676
Stockholders' equity, ending balance at Jun. 30, 2018		$ 350,341	$ 185	$ 363,817	$ (14,158)	$ 0	$ 497

[1] See Note 2

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income (loss)	$ (24,956)	$ 2,556
Loss from discontinued operations	(37,833)	(5,895)
Income from continuing operations	12,877	8,451
Adjustments to reconcile income from continuing operations to net cash flows from operating activities:
Depreciation and amortization	9,229	9,946
Amortization of deferred financing costs	761	851
Deferred income tax benefit	4,818	5,906
Provision for doubtful accounts	1,518	1,112
Stock-based compensation expense	436	356
Trade activity, net	(7,341)	(5,009)
Non-cash interest expense	(10)	0
Write-off of deferred financing costs	97	83
Net loss (gain) on sale and retirements of assets	(398)	715
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(3,845)	(5,905)
Prepaid expenses and other assets	(2,891)	(2,294)
Accounts payable	2,244	(2,658)
Accrued expenses	(6,600)	1,484
Accrued interest	(1,037)	(5)
Other long-term liabilities	(416)	(416)
Net cash provided by operating activities - continuing operations	9,442	12,617
Net cash used in operating activities - discontinued operations	(8,208)	(11,190)
Net cash provided by operating activities	1,234	1,427
Cash flows from investing activities:
Purchase of property and equipment	(8,760)	(8,415)
Payments for acquisitions, net of cash received	(3,724)	(2,157)
Acquisition of intangibles	0	(150)
Proceeds from sale of assets	1,923	172
Net cash used in investing activities - continuing operations	(10,561)	(10,550)
Net cash (used in) provided by investing activities - discontinued operations	22,592	(3,919)
Net cash (used in) provided by investing activities	12,031	(14,469)
Cash flows from financing activities:
Repayment of long-term debt	(9,519)	(6,662)
Dividend payments	(2,061)	0
Deferred financing costs	(2)	(432)
Proceeds from exercise of employee stock options	0	346
Cash distributions to non-controlling interests	(514)	(49)
Repayments of capitalized obligations	(3)	(88)
Net cash used in financing activities - continuing operations	(12,099)	(6,885)
Net cash used in financing activities - discontinued operations	(19)	(563)
Net cash used in financing activities	(12,118)	(7,448)
Net effect of foreign currency exchange rate changes from discontinued operations	92	22
Net (decrease) increase in cash and restricted cash	1,239	(20,468)
Cash and restricted cash, beginning of period	61,205	51,540
Cash and restricted cash, ending of period	62,444	31,072
Cash payments:
Interest	17,176	15,314
Income taxes	1,449	552
Supplemental Disclosure of Non-cash Activities:
Dividends declared during the period	2,123
Dividend Declared
Supplemental Disclosure of Non-cash Activities:
Dividends declared during the period	$ 2,123	$ 0

XML

Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

Description of the Business

Townsquare Media, Inc. (together with its consolidated subsidiaries, except as the context may otherwise require, "we," "us," "our," "Company," or "Townsquare") is a radio, digital media, entertainment and digital marketing solutions company principally focused on being the premier local advertising and marketing solutions platform in small and mid-sized markets across the United States.  Our assets include 320 radio stations and more than 330 local websites in 67 U.S. markets, a digital marketing solutions company (Townsquare Interactive) serving approximately 13,650 small to medium sized businesses, a proprietary digital programmatic advertising platform (Townsquare Ignite), and approximately 200 live events with over one million attendees each year. Our brands include local media assets such as WYRK, KLAQ, K2 and NJ101.5; iconic regional and national events such as the Taste of Country Music Festival, WE Fest, Country Jam, the Boise Music Festival, the Red Direct BBQ & Music Festival and Taste of Fort Collins; and leading tastemaker music and entertainment websites such as XXLmag.com, TasteofCountry.com and Loudwire.com.

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Except as stated below, there have been no significant changes in the Company’s accounting policies since December 31, 2017. For the Company's detailed accounting policies please refer to the consolidated financial statements and related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 (the "2017 Annual Report on Form 10-K") filed with the Securities and Exchange Commission ("SEC") on March 13, 2018.

Impairment of Long Lived and Intangible Assets

We evaluate the recoverability of the carrying amount of long lived and intangible assets, which include property and equipment, whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. Our review for impairment of these long lived and intangible assets takes into account estimates of future undiscounted cash flows and the fair market value based on market indicators. An impairment loss is recognized if the future undiscounted cash flows associated with the assets or the fair market value of the assets are less than their carrying value. Impairment losses are measured as the amount by which the carrying values of the assets exceed their fair market values. During the three and six months ended June 30, 2018, the Company determined that the carrying value of certain long lived and intangible assets exceeded their fair market value and an impairment charge of $38.0 million was recorded and subsequently reclassed as part of net loss from discontinued operations.

Discontinued Operations

The Company previously identified two operating segments - Local Marketing Solutions and Entertainment. During the course of 2018, two changes have occurred which affect not only the quantitative factors for determining reportable segments, but also the way in which the Chief Operating Decision Makers (“CODM(s)”) view and manage the business. The North American Midway Entertainment (“NAME”) business, which represented approximately $92.2 million of revenue and $7.3 million of operating income in 2017, was sold in May of 2018, and Mountain Jam, a multi-day music festival, representing $3.8 million of revenue and negligible operating income in 2017, was discontinued. Both were reclassified as discontinued operations for the three and six months ended June 30, 2018 and 2017. In addition, amounts related to NAME and Mountain Jam have been reclassified as discontinued operations within the December 31, 2017 consolidated balance sheet.

Following these events and without the significant net revenue contribution of NAME, the Company has been reoriented and streamlined from a Local Marketing Solutions and Entertainment products and services company to a consolidated and fully integrated local marketing company. We now view our sole product as marketing solutions (including promotion, advertising, and marketing services) geared to local communities and customers in and around our markets (or markets of similar size and/or constitution). As such, the CODM(s) and management have adjusted the

information used to evaluate performance and allocate resources to be based solely on net revenue and operating income, which spans across geographic regions predominately within the United States.

Recently Issued Accounting Standards

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases. ASU 2016-02 requires the lessee to recognize in the statement of financial position a liability to make lease payments, and a right-of-use asset representing its right to use the underlying asset for the lease term. The liability and asset are initially measured at the present value of the lease payments. The ASU applies to all leases, including those previously classified as operating leases under Accounting Standards Codification ("ASC") Topic 842. The standard is effective for fiscal years beginning after December 15, 2018, and will require measurement of leases at the beginning of the earliest period presented, using a modified retrospective approach. The Company is currently assessing the potential impact ASU 2016-02 will have on its Consolidated Financial Statements and has begun the process of implementing new policies and procedures.

Recently Adopted Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This new standard replaced all prior U.S. GAAP related to revenue recognition and eliminated all industry-specific guidance. The core principle of this new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. On January 1, 2018, we adopted Topic 606, Revenue from Contracts with Customers and all the related amendments to all contracts using the modified retrospective method.

We recognized the cumulative effect of adopting Topic 606 as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new standard to be immaterial to our net income or loss, as applicable, on an ongoing basis.

The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet, after consideration of discontinued operations, for the adoption of Topic 606 were as follows (in thousands):

	As Reported December 31, 2017		Adjustment due to ASC 606		Balance at January 1, 2018
Assets
Prepaid expenses and other current assets	$	7,540	$	2,271	$	9,811
Total Current Assets	138,404		2,271		140,675
Total Assets	$	1,056,358	$	2,271	$	1,058,629
Total Liabilities	$	675,278	$	—	$	675,278
Equity
Retained earnings	$	13,265	$	2,271	$	15,536
Total stockholders' equity	381,080		2,271		383,351
Total liabilities and stockholders' equity	$	1,056,358	$	2,271	$	1,058,629

As a part of Topic 606 adoption, we reclassified costs associated with sales commissions related to obtaining certain customer contracts. In accordance with the new revenue standard's requirements, for the six months ended June 30, 2018, the impact of adoption of Topic 606 on our consolidated financial statements was a decrease to operating expenses and an increase to net income of approximately $0.3 million as a result of amortizing deferred commissions under ASC 606.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies 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. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods.  The adoption of this new guidance did not have a material impact on our consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The standard became effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of this new guidance did not have a material impact on our consolidated financial statements.

XML

Revenue Recognition

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following tables disaggregate our revenues into the following categories; Advertising, which includes broadcast and local digital advertising products, Live Events and our digital marketing solutions business under the brand name Townsquare Interactive (in thousands):

	Three Months Ended June 30, 2018								Six Months Ended June 30, 2018
	Advertising		Live Events		Townsquare Interactive		Total		Advertising		Live Events		Townsquare Interactive		Total
Net Revenue (ex Political)	$	84,985	$	21,586	$	11,685	$	118,256	$	155,827	$	27,240	$	22,480	$	205,547
Political	1,321		—		—		1,321		2,021		—		—		2,021
Net Revenue	$	86,306	$	21,586	$	11,685	$	119,577	$	157,848	$	27,240	$	22,480	$	207,568

	Three Months Ended June 30, 2017								Six Months Ended June 30, 2017
	Advertising		Live Events		Townsquare Interactive		Total		Advertising		Live Events		Townsquare Interactive		Total
Net Revenue (ex Political)	$	82,805	$	23,956	$	9,958	$	116,719	$	151,564	$	30,361	$	19,274	$	201,199
Political	584		—		—		584		1,033		—		—		1,033
Net Revenue	$	83,389	$	23,956	$	9,958	$	117,303	$	152,597	$	30,361	$	19,274	$	202,232

Revenue from contracts with customers is recognized as an obligation until the terms of a customer contract are satisfied; generally this occurs with the transfer of control as we satisfy contractual performance obligations over time. Our contractual performance obligations include the broadcast of commercials on our owned and operated radio stations, digital sales of internet based advertising campaigns, digital marketing solutions, and the operation of live events. Revenue is measured at contract inception as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Our contracts are at a fixed price at inception and do not include any variable consideration or financing components by normal course of business practice. Sales, value add, and other taxes that are collected concurrently with revenue producing activities are excluded from revenue.

The primary sources of net revenue are the sale of advertising on our radio stations, owned and operated websites, radio stations’ online streams, and mobile applications. We offer precision customer targeting solutions to advertisers through Townsquare Ignite, our digital programmatic advertising platform. We also offer digital marketing solutions under the brand name Townsquare Interactive, on a subscription basis, to small and mid-sized local and regional businesses in small and mid-sized markets across the United States, including the markets in which we operate radio stations. In addition, we offer a diverse range of live events which we create, promote, and produce. This includes festivals, concerts, expositions and other experiential events within and beyond our markets. Our live events also

generate substantial net revenue through the sale of sponsorships, food and other concessions, merchandise and other ancillary products and services.

Political net revenue includes the sale of advertising on our owned and operated radio stations from contracts with political advertisers.  Contracted performance obligations under political contracts consist of the broadcast of advertisements across our locally owned and operated radio stations. Management views political revenue separately because political is episodic based on the election cycle and local issues calendars.

Net revenue for broadcast commercials and digital advertisements are recognized as the commercials are broadcast and digital advertisements are placed and the contractual performance obligations for Townsquare services are satisfied. We measure progress towards the satisfaction of our contractual performance obligations via the output produced in accordance with the contractual arrangement (the broadcast of commercials or the placement of digital advertisements). We recognize the associated contractual revenue as the delivery takes place and the right to invoice for services performed is met.

Our advertising contracts are short-term (less than one year) and payment terms are generally net 30-60 days for traditional customer contracts and net 60-90 days for national agency customer contracts. Our billing practice is to invoice customers on a monthly basis for services delivered to date (representing the right to invoice). Our contractual arrangements do not include rights of return and do not include any significant judgments by nature of the products and services.

Net revenue from digital subscription-based contractual performance obligations is recognized ratably over time as our performance obligations are satisfied. Subscription-based service fees are typically billed in advance of the month of service at a fixed monthly fee that is contractually agreed upon at contract inception. The measure of progress in such arrangements is the number of days of successful delivery of the contracted service.

Live events net revenue is recognized as events are conducted and our contractual performance obligations are satisfied. Our live events include single day and multi-day events, generally ranging from one day to four days in duration. We measure progress towards the satisfaction of contractual performance obligations on a daily basis, measured by the successful delivery of the event and honoring customer admissions and vendor event commitments. Live event ticket purchase prices are due at the point of purchase and are nonrefundable. Live event tickets are often sold in advance of the events; in the case of advanced ticket sales, we defer the recognition of consideration received until we satisfy the future performance obligation. Live event contractual arrangements do not include any variable consideration, financing components, or significant judgments.

For all customer contracts, we evaluate whether we are the principal (i.e., report revenue on a gross basis) or the agent (i.e., report revenue on a net basis). Generally, we report revenue for advertising placed on Townsquare properties on a gross basis (the amount billed to our customers is recorded as revenue, and the amount paid to our publishers is recorded as a cost of revenue). We are the principal because we control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising inventory, being primarily responsible to our customers, having discretion in establishing pricing, or a combination of these factors. We also generate revenue through agency relationships in which revenue is reported net of agency commissions. Agency commissions are calculated based on a stated percentage applied to gross billing revenue for advertisers that use agencies.

No impairment losses have arisen from any contracts with customers during the three or six months ended June 30, 2018.

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	At Adoption January 1, 2018		June 30, 2018
Receivables	$	61,558	$	67,122
Short-term contract liabilities (deferred revenue)	$	17,281	$	12,248

We receive payments from customers based upon contractual billing schedules; accounts receivable is recorded when the right to consideration becomes unconditional. Contract receivables are recognized in the period the Company provides services when the Company’s right to consideration is unconditional. Payment terms vary by the type and location of our customer and the products or services offered. Payment terms for amounts invoiced are typically net 30-60 days. The term between invoicing and when payment is due is not significant. The Company had no material bad debt expense recorded during the three months or six months ended June 30, 2018.

We record contract liabilities when cash payments are received or due in advance of satisfying our performance obligations. Our contract liabilities include cash payments received or due in advance related to event ticket sales for events scheduled to take place over the course of the current year and digital subscriptions in which payment is received in advance of the service month. These contract liabilities are recognized as revenue as the related performance obligations are satisfied. The decrease in the contract liabilities balance that was included in the deferred revenue balance at January 1, 2018 is primarily driven by $7.2 million and $12.6 million of recognized revenue for the three and six months ended June 30, 2018, offset by cash payments received or due in advance of satisfying our performance obligations. No significant changes in the time-frame of the satisfaction of contract liabilities have occurred during the six months ended June 30, 2018.

In connection with the adoption of Topic 606, we are required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed (previously such costs were expensed as incurred). Our capitalized contract acquisition costs include amounts related to sales commissions paid for contract acquisition costs related to signed contracts with perceived durations exceeding one year. For these contracts, we defer the related sales commission costs and amortize such costs to expense consistent with how the related revenue is recognized over the duration of the contracts. We have evaluated the average customer contract duration (initial term and any renewals) to determine the appropriate amortization period for these contractual arrangements. For contracts with a duration of less than one year, we follow a Topic 606 practical expedient and expense these costs when incurred. As of January 1, 2018, we had a balance of $2.3 million in deferred costs and have recognized $0.5 million and $1.1 million for the three and six months ended June 30, 2018. No impairment losses have been recognized or changes made to the time-frame for performance of the obligations related to deferred contract assets during the three and six months ended June 30, 2018.

Arrangements with Multiple Performance Obligations

In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. When multiple performance obligations are identified, we identify how control transfers to the customer for each distinct contract obligation and determine the period when the obligations are satisfied. If obligations are satisfied in the same period, no allocation of revenue is deemed to be necessary. In the event performance obligations within a bundled contract do not run concurrently, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or by using expected cost-plus margins. Performance obligations that are not distinct at contract inception are combined.

Practical Expedients and Exemptions

We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within direct operating expenses.

We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed as amounts related to those performance obligations with expected durations of greater than one year are at a fixed price per unit and do not include any upfront or minimum payments requiring any estimation or allocation of revenue.

XML

Interim Financial Data

6 Months Ended

Jun. 30, 2018

Quarterly Financial Information Disclosure [Abstract]

Interim Financial Data

Interim Financial Data

The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes thereto included in the Company's 2017 Annual Report on Form 10-K. The accompanying unaudited interim consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries, with all significant intercompany balances and transactions eliminated in consolidation. These financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of results of operations for and financial condition as of the end of the interim periods have been included. The results of operations and cash flows for the three and six months ended June 30, 2018 and the Company’s financial condition as of such date are not necessarily indicative of the results of operations or cash flows that can be expected for, or the Company’s financial condition as of, any other interim period or for the fiscal year ending December 31, 2018. The Consolidated Balance Sheet as of December 31, 2017 is derived from the audited financial statements at that date, adjusted for the impact of certain businesses that were discontinued in 2018.     

Our net revenue varies throughout the year. We expect that our first calendar quarter will produce the lowest net revenue for the year, as advertising expenditures generally decline following the winter holidays, and the second and third calendar quarters will generally produce the highest net revenue for the year. During even-numbered years, net revenue generally includes increased advertising expenditures by political candidates, political parties and special interest groups. Political spending is typically highest during the fourth quarter. In addition to advertising revenue seasonality, our live events net revenue exhibits seasonality resulting in the second quarter being the highest revenue period. The most significant driver of seasonality in live events net revenue is our multi-day music festivals which are predominately in the second and third quarter. Our operating results in any period may be affected by the incurrence of advertising and promotion expenses that typically do not have an effect on net revenue generation until future periods, if at all.

In the media industry, companies, including ours, sometimes utilize barter agreements that exchange advertising time for goods or services such as travel, lodging or assets, instead of cash. Barter revenue was $6.8 million and $7.5 million and barter expense was $3.9 million and $4.0 million for the three months ended June 30, 2017 and 2018, respectively. Barter revenue was $11.6 million and $14.7 million and barter expense was $6.6 million and $7.4 million for the six months ended June 30, 2017 and 2018, respectively.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its significant estimates, including those related to bad debts, intangible assets, income taxes, contingencies and purchase price allocations. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the result of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts and results may differ materially from these estimates under different assumptions or conditions.

XML

Investments

6 Months Ended

Jun. 30, 2018

Investments, All Other Investments [Abstract]

Investments

Investments

Long-term investments consist of minority holdings in companies that management believes are synergistic with Townsquare. Management does not exercise significant control over operating and financial policies of the investees; accordingly, the investments are reflected under the cost method of accounting. The initial equity valuations were based upon a combination of valuation analysis using observable inputs categorized as Level 2 and performing discounted cash flows analysis, using unobservable inputs categorized as Level 3 within the ASC 820 framework.

On May 17, 2018, the Company entered into a Marketing Service Agreement whereby the Company will provide certain marketing services across our digital and live events platforms. As part of the consideration for our marketing services, the Company was provided preferred stock with an aggregate value of $3.2 million.  The  investment represents  a  minority  ownership  position  and  is  accounted  for  under  the  cost  method  of  accounting  and  is recorded  as  an  investment  on  the  Company's Consolidated Balance Sheet as of June 30, 2018.

XML

Property and Equipment

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

Property and equipment consisted of the following:

(in thousands)	December 31, 2017			June 30, 2018
Land and improvements	$	20,870		$	20,975
Buildings and leasehold improvements	40,567			41,369
Broadcast equipment	74,851			77,746
Computer and office equipment	13,198			13,951
Furniture and fixtures	13,894			15,624
Transportation equipment	13,509			15,100
Software development costs	15,943			18,704
Total property and equipment, gross	192,832			203,469
Less accumulated depreciation and amortization	(88,802		)	(95,577		)
Total property and equipment, net	$	104,030		$	107,892

Depreciation and amortization expense for property and equipment was $4.6 million and $4.3 million for the three months ended June 30, 2017 and 2018, respectively and $8.8 million and $8.5 million for the six months ended June 30, 2017 and 2018, respectively.

The Company recorded an impairment charge of $25.6 million during the three months ended March 31, 2018 as the Company determined that the carrying value of certain property and equipment assets exceeded their fair market value based on market indicators. This impairment charge has been reclassed as part of net loss from discontinued operations in our Consolidated Statement of Operations for the six months ended June 30, 2018.

XML

Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Indefinite-lived assets consist of FCC broadcast licenses and goodwill. FCC licenses represent a substantial portion of the Company’s total assets. The FCC licenses are renewable in the ordinary course of business, generally for a maximum of eight years. The fair value of FCC licenses is primarily dependent on the future cash flows of the radio markets and other assumptions, including, but not limited to, forecasted revenue growth rates, profit margins and a risk-adjusted discount rate.

The Company has selected December 31^st as the annual testing date. If market conditions and operational performance of the Company’s reporting units were to deteriorate and management had no expectation that the performance would improve within a reasonable period of time or if an event occurs or circumstances change that would reduce the fair value of its goodwill and intangible assets below the amounts reflected in the balance sheet, the Company may be required to recognize additional impairment charges in future periods.

With the exception of a reclassification as a result of discontinued operations, there were no changes to the carrying value of goodwill for the three and six months ended June 30, 2018. Goodwill was $241.9 million at June 30, 2018.

Intangible assets consist of the following:

(in thousands)	Estimated Useful Life	December 31, 2017		June 30, 2018
Intangible Assets:
FCC licenses	Indefinite	$	484,535	$	484,535
Customer and advertising relationships	10 years	14,317		14,317
Leasehold interests	5 to 39 years	1,085		1,085
Tower space	3 to 9 years	454		454
Sports broadcast rights	1 to 2 years	665		665
Non-compete agreements	1 to 2 years	243		243
Trademarks	15 years	8,675		8,675
Other intangibles	3 years	1,141		1,141
Total		511,115		511,115
Less: Accumulated amortization		(15,614)		(16,392		)
Net amount		$	495,501	$	494,723

Amortization expense for definite-lived intangible assets was $0.6 million and $0.4 million for the three months ended June 30, 2017 and 2018, respectively and $1.2 million and $0.8 million for the six months ended June 30, 2017 and 2018, respectively.

The Company recorded an impairment charge of $12.4 million during the three months ended March 31, 2018 as the Company determined that the carrying value of certain intangible assets exceeded their fair market value based on market indicators. This impairment charge has been reclassed as part of net loss from discontinued operations in our Consolidated Statement of Operations for the six months ended June 30, 2018.

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of June 30, 2018 is as follows (in thousands):

2018 (remainder)	$	657
2019	1,313
2020	1,265
2021	1,256
2022	1,253
Thereafter	4,444
	$	10,188

XML

Long-Term Debt

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Total debt outstanding is summarized as follows:

(in thousands)	December 31, 2017			June 30, 2018
2023 Notes	$	280,079		$	280,079
Term Loans	291,851			282,332
Capitalized obligations	15			12
Debt before deferred financing costs	571,945			562,423
Deferred financing costs	(6,803		)	(5,948		)
Total debt	565,142			556,475
Less: current portion of long-term debt	(9,524		)	(5		)
Total long-term debt	$	555,618		$	556,470

On April 1, 2015, the Company issued $300.0 million of 6.5% Unsecured Senior Notes due in 2023 (the "2023 Notes") and a Senior Secured Credit Facility, which includes a seven year, $275.0 million term loan facility (the "Term Loans") and a five year, $50.0 million revolving credit facility (the "Revolver"). Borrowings are guaranteed by each of the Company’s direct and indirect subsidiaries, and subject to certain exceptions, are secured by substantially all of the tangible and intangible assets of the Company and its subsidiaries. On September 1, 2015, the Company issued incremental term loans of $45.0 million under the Senior Secured Credit Facility.        

On February 8, 2017, the Company amended its Senior Secured Credit Facility agreement to reduce the applicable interest rate on its Term Loan. Under the amended Term Loan, the applicable margin was reduced by 25 basis points to 300 basis points. The LIBOR floor of 1.00% remained unchanged. All other terms of the Senior Secured Credit Facility agreement remained substantially unchanged. The Company capitalized $0.4 million of deferred financing costs in connection with this repricing. As of June 30, 2018, the interest rate on the Term Loans was 5.09%. The Revolver has an interest rate based either on LIBOR and an applicable margin of 250 basis points, or an alternative base rate and an applicable margin of 150 basis points. As of June 30, 2018, the Company had no outstanding borrowings under the Revolver.

The 2023 Notes mature on April 1, 2023, with interest payable on April 1 and October 1 of each year. Prior to maturity, the Company may redeem all or part of the 2023 Notes at specified redemption premiums as set forth in the indenture, together with any accrued and unpaid interest thereon. Additionally, if the Company experiences certain change of control events, holders of the 2023 Notes may require the Company to repurchase all or part of their notes at 101% of the principal amount thereof.

The 2023 Notes rank equally with all of the Company's existing and future senior debt, are senior to all of the Company's existing and future subordinated debt and are guaranteed on a senior basis by certain of the Company’s direct and indirect wholly-owned subsidiaries.

The 2023 Notes indenture contains restrictive covenants that limit the ability of the Company and its subsidiaries to, among other things, incur additional debt or issue preferred stock; create liens; create restrictions on the Company’s subsidiaries’ ability to make payments to the Company; pay dividends and make other distributions in respect of the Company’s and its subsidiaries’ capital stock; make certain investments or certain other restricted payments; guarantee indebtedness; designate unrestricted subsidiaries; sell certain kinds of assets; enter into certain types of transactions with affiliates; and effect mergers and consolidations.

The Term Loans mature on April 1, 2022, and the Revolver matures on April 1, 2020. Borrowings under the Senior Secured Credit Facility are subject to mandatory prepayments equal to the net proceeds to the Company of any additional debt issuances or asset sales, as well as half of the annual excess cash flow as defined in the credit agreement (both subject to certain reductions).  At December 31, 2017, we were required to make an excess cash flow payment on the outstanding Term Loans of $9.5 million which was subsequently paid on March 20, 2018. The Company recognized an expense of $0.1 million on the accelerated depreciation of unamortized deferred financing costs in connection with this prepayment in the first quarter of 2018. Borrowings are guaranteed by each of the Company’s direct and indirect subsidiaries, and subject to certain exceptions, are secured by substantially all of the tangible and intangible assets of the Company and its subsidiaries.

The Senior Secured Credit Facility contains covenants that, among other things, limit or restrict the ability of the Company and its subsidiaries to incur additional indebtedness or liens; engage in mergers or other fundamental changes; sell certain property or assets; pay dividends or other distributions; make acquisitions, investments, loans and advances; prepay certain indebtedness including the 2023 Notes; change the nature of its business; engage in certain transactions with affiliates and incur restrictions on interactions between the Company and its subsidiaries, or limit actions in relation to the Senior Secured Credit Facility.

The Company is in compliance with its covenants under the 2023 Notes and Senior Secured Credit Facility as of June 30, 2018.

As of June 30, 2018, based on available market information, the estimated fair value of the 2023 Notes and the Term Loans were $255.6 million and $282.0 million, respectively.

Annual maturities of the Company's long-term debt as of June 30, 2018 are as follows (in thousands):

2018 (remainder)	$	3
2019	5
2020	5
2021	—
2022	282,332
Thereafter	280,079
	$	562,424

XML

Stockholders' Equity

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

The table below presents a summary, as of June 30, 2018, of our authorized and outstanding common stock, and securities convertible into common stock, excluding options issued under our 2014 Omnibus Incentive Plan.

Security1	Par Value Per Share		Number Authorized	Number Outstanding	Description
Class A common stock	$	0.01	300,000,000	14,248,526	One vote per share.
Class B common stock	$	0.01	50,000,000	3,011,634	10 votes per share.2
Class C common stock	$	0.01	50,000,000	1,636,341	No votes.2
Warrants				8,977,676	Each warrant is exercisable for one share of Class A common stock, at an exercise price of $0.0001 per share. The aggregate exercise price for all warrants currently outstanding is $898.3
Total			400,000,000	27,874,177
1 Each of the shares of common stock, including the shares of Class A common stock issuable upon exercise of the warrants, have equal economic rights.
2 Each share converts into one share of Class A common stock upon transfer or at the option of the holder, subject to certain conditions, including compliance with FCC rules.
3 The warrants are fully vested and exercisable for shares of Class A common stock, subject to certain conditions, including compliance with FCC rules.

The foregoing share totals include 418,037 shares of restricted Class A common stock, subject to vesting terms, but exclude 4,600,049 of Class A common stock and 5,111,236 of Class B common stock issuable upon exercise of stock options, which options have an exercise price of between $6.31 and $10.62 per share. Additionally, the Company is authorized to issue 50,000,000 shares of undesignated preferred stock.    

The Company's common stock is not entitled to preemptive or other similar subscription rights to purchase any of our securities. Unless the Company's Board of Directors determines otherwise, we will issue all of our capital stock in uncertificated form.

On March 12, 2018 the Board of Directors approved its first quarterly dividend of $0.075 per share. The $2.1 million dividend was paid to holders of record as of April 2, 2018 on May 15, 2018. On May 7, 2018, the Board of Directors approved its second quarterly dividend of $0.075 per share. The $2.1 million dividend will be paid to holders of record as of June 28, 2018 on August 15, 2018.

Stock-based Compensation    

The Company's 2014 Omnibus Incentive Plan (the "2014 Incentive Plan") provides grants of stock options, stock appreciation rights, restricted stock, other stock-based awards and other cash-based awards. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting or advisory services for the Company, are eligible for grants under the 2014 Incentive Plan. The purpose of the 2014 Incentive Plan is to provide incentives that will attract, retain and motivate high performing officers, directors, employees and consultants by providing them with appropriate incentives and rewards either through a proprietary interest in our long-term success or compensation based on their performance in fulfilling their personal responsibilities. The aggregate number of shares of common stock which may be issued or used for reference purposes under the 2014 Incentive Plan or with respect to which awards may be granted may not exceed 12,000,000 shares. As of June 30, 2018, 1,827,600 shares were available for grant.    

Options granted prior to 2016 vested immediately. Options granted beginning in 2016 generally vest 50% after three years and 50% after four years, with the exception of approximately 1.2 million options issued in 2018 that vest 25% each year over four years. The options have an exercise price of between $6.31 and $10.62 per share. The expected term of each option grant was calculated using the simplified method, defined as the midpoint between the vesting period and the contractual term of each award. The expected volatility was based on market conditions of the Company and comparable companies. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the expected term of the option. The Company historically had not paid dividends and therefore did not utilize a dividend yield in the calculations, however, beginning with grants made in 2018, we have used an annual dividend of $0.30 per share in our calculations.

The following table summarizes stock option activity for the six months ended June 30, 2018:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at January 1, 2018	8,544,225		$	9.50	6.11	$	—
Granted	1,342,000		6.38
Exercised	—		—
Forfeited	(174,940	)	9.36
Outstanding at June 30, 2018	9,711,285		$	9.07	6.13	$	203,200

Stock-based compensation expense was $0.2 million and $0.3 million for the three months ended June 30, 2017 and 2018, respectively, and $0.4 million and $0.4 million for the six months ended June 30, 2017 and 2018, respectively. As of June 30, 2018, total unrecognized stock-based compensation expense is $7.2 million, including $2.6 million related to restricted stock awards, to be recognized over four or five years.

On May 31, 2018, the Company issued 400,000 shares of restricted stock under the 2014 incentive plan, none of which were vested as of June 30, 2018. At June 30, 2018, there were 418,037 restricted stock shares outstanding with a weighted average grant date fair value per share of $6.38. The fair value of the restricted stock shares is equal to the closing share price on the date of grant. Of the total restricted stock shares outstanding, 400,000 vest 25% each year over four years and the remainder have a five-year vesting term. The Company has aggregate restricted stock share commitments of $0.1 million through 2021.

XML

Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The provision for income taxes includes effects from the Tax Cuts and Jobs Act (“TCJA”) for changes that became effective January 1, 2018. We have incorporated provisional estimates for these new TCJA provisions as part of our forecasted annual effective tax rate.  For the period ended June 30, 2018, we have not recorded any adjusted tax impacts with respect to provisional amounts previously recorded at December 31, 2017 for deferred tax balances and the one-time transition tax. We are still refining our calculations and interpreting recent guidance on both the federal and state level which could change these provisional tax amounts. No material changes are anticipated.

The Company's effective tax rate for the six months ended June 30, 2017 and 2018 was approximately 41.2% and 27.2%, respectively. The effective tax rate may vary significantly from period to period, and can be influenced by many factors.  These factors include, but are not limited to, changes to the statutory rates in the jurisdictions where the Company has operations and changes in the valuation of deferred tax assets and liabilities.  The difference between the effective tax rate and the federal statutory rate of 21% for the six months ended June 30, 2018 primarily relates to certain non-deductible items under the TCJA provisions and state, local and foreign income taxes.

XML

Accrued Expenses and Other Current Liabilities

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

(in thousands)	December 31, 2017		June 30, 2018
Accrued compensation and benefits	$	10,629	$	6,594
Accrued professional fees	1,057		869
Accrued commissions	2,010		2,324
Accrued taxes	2,039		2,356
Accrued music and FCC licensing	251		2,003
Accrued publisher fees	2,752		2,652
Accrued national representation fees	947		875
Due to sellers, business combinations	291		3
Deferred rent	1,951		1,923
Dividends payable	—		2,123
Accrued other	2,992		3,750
	$	24,919	$	25,472

XML

Lease and Other Commitments

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Lease and Other Commitments

Lease and Other Commitments

Operating Leases: The Company leases certain facilities and equipment used in its operations. Certain of the Company’s operating leases contain renewal options through 2062, escalating rent provisions and/or cost of living adjustments. Total rental expense was approximately $4.8 million and $4.3 million for the three months ended June 30, 2017 and 2018, respectively and approximately $8.7 million and $8.0 million for the six months ended June 30, 2017 and 2018, respectively. Total rental expense includes costs incurred for live events such as venue and equipment rentals.

At June 30, 2018, the total minimum annual rental commitments under non-cancelable operating leases are as follows (in thousands):

2018 (remainder)	$	4,980
2019	9,236
2020	7,056
2021	5,400
2022	4,401
Thereafter	14,422
Total minimum payments	$	45,495

Other Commitments: The radio broadcast industry’s principal ratings service is Nielsen Holdings N.V. ("Nielsen"), which publishes surveys for domestic radio markets. The Company’s remaining aggregate obligation under the agreements with Nielsen as of June 30, 2018 is approximately $20.7 million and is expected to be paid in accordance with the agreements through September 2021. In addition, the Company has aggregate commitments of $2.3 million for other broadcasting services through December 2019 and aggregate commitments of $11.5 million for a business management platform through 2023.

XML

Discontinued Operations

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

During the fourth quarter of 2017, management undertook a corporate strategic review of the Company’s operations and concluded the Company should exit certain live events businesses. These businesses are classified as discontinued operations as they represent separate lines of business and the discontinuation thereof represents a strategic shift towards core business offerings. During the fourth quarter of 2017, management determined that following the completion of contractually committed 2017 events, the live event verticals, Premium Music and Holiday, would be discontinued.

On May 24, 2018, the  Company,  through  its  subsidiary,  Townsquare  Live  Events,  LLC,  sold all of the issued and outstanding membership interests of Heartland Group, LLC and its wholly owned subsidiary NAME to North American Fairs, LLC for total cash consideration of $23.5 million. In addition, Townsquare will have the right to receive 15% of any sales proceeds if NAME is sold in whole or in part within the next ten years. We have historically considered NAME the primary business of our Entertainment reportable segment, consistent with the manner in which the CODM(s) view the business. As the divestiture of the NAME business represents a strategic shift that will have a major effect on the Company’s operations and financial results, NAME's assets, liabilities and financial results are presented as discontinued operations separate from the Company’s continuing operations for all periods presented. We recognized a loss on the sale of NAME of approximately $1.9 million within net loss from discontinued operations and our Entertainment reportable segment will no longer be presented as part of our segment reporting.

On June 29, 2018, the Company entered into an Agreement of Purchase and Sale to transfer it's 70% controlling interest in Mountain Jam, LLC ("Mountain Jam") to Chet-5 Festivals, LLC ("Chet-5"), and to acquire the 30% minority interest in Taste of Country Productions LLC from Chet-5. The purchase and sale included a payment of $1.3 million from the Company to Chet-5. The Company recognized a gain on the sale of Mountain Jam of approximately $1.2 million within net loss from discontinued operations.     

The following table shows the components of assets and liabilities that are related to discontinued operations in the Company's Consolidated Balance Sheets:

(in thousands)	December 31, 2017		June 30, 2018
Cash and cash equivalents	$	4,090	$	228
Accounts receivable	183		18
Prepaid expenses and other current assets	3,828		10
Current assets of discontinued operations	8,101		256
Property and Equipment, net	42,962		—
Intangible assets, net	14,053		—
Other non-current assets	2,463		—
Long term assets of discontinued operations	59,478		—
Accounts payable	1,116		—
Accrued expenses and other current liabilities	1,324		3,038
Current liabilities of discontinued operations	2,440		3,038
Other long-term liabilities	10,682		—
Long term liabilities of discontinued operations	10,682		—
Net assets	$	54,457	$	(2,782	)

The following table shows the components of operations that are related to discontinued operations in the Company's Consolidated Statement of Operations:

	Three Months Ended   June 30,						Six Months Ended June 30,
	2017			2018			2017			2018
Net revenue	$23,360			$9,666			$26,848			$15,901
Discontinued operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	25,538			15,856			33,568			27,565
Depreciation and amortization	1,677			437			3,279			2,176
Stock-based compensation	8			4			15			11
Impairment of long lived and intangible assets	—			—			—			37,972
Net loss on sale and retirement of assets	—			423			—			423
Discontinued operating loss	(3,863		)	(7,054		)	(10,014		)	(52,246		)
Other expense:
Interest expense, net	—			—			—			(1		)
Other expense, net	(23		)	12			(26		)	24
Loss from discontinued operations before income taxes	(3,840		)	(7,066		)	(9,988		)	(52,269		)
Benefit from income taxes	(1,603		)	1,375			(4,093		)	(14,436		)
Net loss from discontinued operations	$	(2,237	)	$	(8,441	)	$	(5,895	)	$	(37,833	)

XML

Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

The following table sets forth the computations of basic and diluted net income (loss) per share for the three and six months ended June 30, 2017 and 2018.

(in thousands, except per share data)	Three Months Ended   June 30,						Six Months Ended   June 30,
	2017			2018			2017			2018
Numerator:
Net income (loss) from continuing operations	7,800			10,075			8,451			12,877
Net (loss) income from discontinued operations, net of income taxes	(2,237		)	(8,441		)	(5,895		)	(37,833		)
Net income (loss)	$	5,563		$	1,634		$	2,556		$	(24,956	)
Denominator:
Weighted average shares of common stock outstanding	18,470			18,633			18,450			18,563
Effect of dilutive common stock equivalents	9,975			8,978			10,048			8,978
Weighted average diluted common shares outstanding	28,445			27,611			28,498			27,541
Basic income (loss) per share:
Continuing operations	$	0.42		$	0.54		$	0.46		$	0.69
Discontinued operations	(0.12		)	(0.45		)	(0.32		)	(2.04		)
Diluted income per share:
Continuing operations	$	0.27		$	0.36		$	0.30		$	0.47
Discontinued operations	(0.08		)	(0.31		)	(0.21		)	$	(1.37	)

XML

Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Dividend

On August 7, 2018 the Board of Directors approved a dividend of $0.075 per share. The dividend will be paid to holders of record as of September 27, 2018. The estimated $2.1 million dividend will be paid on November 15, 2018.

Option Exchange

On July 18, 2018, the Company commenced an offer to eligible executive officers, employees and directors to exchange certain outstanding eligible options to purchase shares of our common stock for new options covering a lesser number of shares of our common stock exercisable at a lower price. The exchange offer is expected to result in the grant of replacement options with a fair value, for accounting purposes, that is approximately equal to the fair value of the eligible options that are surrendered in the exchange offer.

The exchange offer is not a one-for-one exchange, which means eligible individuals will not receive one replacement option for every eligible option surrendered in the exchange offer. The number of replacement options to be granted in exchange for each eligible option surrendered depends on the grant date and exercise price of the surrendered option. The exchange offer is expected to expire on August 16, 2018.

Acquisitions

On March 21, 2018, the Company entered into an asset purchase agreement to acquire three radio stations in Princeton, NJ from Connoisseur Media, LLC for $17.3 million. The acquired assets included WPST-FM, WNJE-AM and WCHR-AM. The acquisition closed on July 2, 2018 and the consideration was paid with cash on hand.

XML

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Impairment of Long Lived and Intangible Assets

Impairment of Long Lived and Intangible Assets We evaluate the recoverability of the carrying amount of long lived and intangible assets, which include property and equipment, whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. Our review for impairment of these long lived and intangible assets takes into account estimates of future undiscounted cash flows and the fair market value based on market indicators. An impairment loss is recognized if the future undiscounted cash flows associated with the assets or the fair market value of the assets are less than their carrying value. Impairment losses are measured as the amount by which the carrying values of the assets exceed their fair market values.

Discontinued Operations

Discontinued Operations

The Company previously identified two operating segments - Local Marketing Solutions and Entertainment. During the course of 2018, two changes have occurred which affect not only the quantitative factors for determining reportable segments, but also the way in which the Chief Operating Decision Makers (“CODM(s)”) view and manage the business. The North American Midway Entertainment (“NAME”) business, which represented approximately $92.2 million of revenue and $7.3 million of operating income in 2017, was sold in May of 2018, and Mountain Jam, a multi-day music festival, representing $3.8 million of revenue and negligible operating income in 2017, was discontinued. Both were reclassified as discontinued operations for the three and six months ended June 30, 2018 and 2017. In addition, amounts related to NAME and Mountain Jam have been reclassified as discontinued operations within the December 31, 2017 consolidated balance sheet.

Following these events and without the significant net revenue contribution of NAME, the Company has been reoriented and streamlined from a Local Marketing Solutions and Entertainment products and services company to a consolidated and fully integrated local marketing company. We now view our sole product as marketing solutions (including promotion, advertising, and marketing services) geared to local communities and customers in and around our markets (or markets of similar size and/or constitution). As such, the CODM(s) and management have adjusted the

information used to evaluate performance and allocate resources to be based solely on net revenue and operating income, which spans across geographic regions predominately within the United States.

Recently Issued and Recently Adopted Accounting Standards

Recently Issued Accounting Standards

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases. ASU 2016-02 requires the lessee to recognize in the statement of financial position a liability to make lease payments, and a right-of-use asset representing its right to use the underlying asset for the lease term. The liability and asset are initially measured at the present value of the lease payments. The ASU applies to all leases, including those previously classified as operating leases under Accounting Standards Codification ("ASC") Topic 842. The standard is effective for fiscal years beginning after December 15, 2018, and will require measurement of leases at the beginning of the earliest period presented, using a modified retrospective approach. The Company is currently assessing the potential impact ASU 2016-02 will have on its Consolidated Financial Statements and has begun the process of implementing new policies and procedures.

Recently Adopted Accounting Standards

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This new standard replaced all prior U.S. GAAP related to revenue recognition and eliminated all industry-specific guidance. The core principle of this new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. On January 1, 2018, we adopted Topic 606, Revenue from Contracts with Customers and all the related amendments to all contracts using the modified retrospective method.

We recognized the cumulative effect of adopting Topic 606 as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new standard to be immaterial to our net income or loss, as applicable, on an ongoing basis.

The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet, after consideration of discontinued operations, for the adoption of Topic 606 were as follows (in thousands):

	As Reported December 31, 2017		Adjustment due to ASC 606		Balance at January 1, 2018
Assets
Prepaid expenses and other current assets	$	7,540	$	2,271	$	9,811
Total Current Assets	138,404		2,271		140,675
Total Assets	$	1,056,358	$	2,271	$	1,058,629
Total Liabilities	$	675,278	$	—	$	675,278
Equity
Retained earnings	$	13,265	$	2,271	$	15,536
Total stockholders' equity	381,080		2,271		383,351
Total liabilities and stockholders' equity	$	1,056,358	$	2,271	$	1,058,629

As a part of Topic 606 adoption, we reclassified costs associated with sales commissions related to obtaining certain customer contracts. In accordance with the new revenue standard's requirements, for the six months ended June 30, 2018, the impact of adoption of Topic 606 on our consolidated financial statements was a decrease to operating expenses and an increase to net income of approximately $0.3 million as a result of amortizing deferred commissions under ASC 606.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies 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. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods.  The adoption of this new guidance did not have a material impact on our consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The standard became effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of this new guidance did not have a material impact on our consolidated financial statements.

XML

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet, after consideration of discontinued operations, for the adoption of Topic 606 were as follows (in thousands):

	As Reported December 31, 2017		Adjustment due to ASC 606		Balance at January 1, 2018
Assets
Prepaid expenses and other current assets	$	7,540	$	2,271	$	9,811
Total Current Assets	138,404		2,271		140,675
Total Assets	$	1,056,358	$	2,271	$	1,058,629
Total Liabilities	$	675,278	$	—	$	675,278
Equity
Retained earnings	$	13,265	$	2,271	$	15,536
Total stockholders' equity	381,080		2,271		383,351
Total liabilities and stockholders' equity	$	1,056,358	$	2,271	$	1,058,629

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	At Adoption January 1, 2018		June 30, 2018
Receivables	$	61,558	$	67,122
Short-term contract liabilities (deferred revenue)	$	17,281	$	12,248

XML

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

following tables disaggregate our revenues into the following categories; Advertising, which includes broadcast and local digital advertising products, Live Events and our digital marketing solutions business under the brand name Townsquare Interactive (in thousands):

	Three Months Ended June 30, 2018								Six Months Ended June 30, 2018
	Advertising		Live Events		Townsquare Interactive		Total		Advertising		Live Events		Townsquare Interactive		Total
Net Revenue (ex Political)	$	84,985	$	21,586	$	11,685	$	118,256	$	155,827	$	27,240	$	22,480	$	205,547
Political	1,321		—		—		1,321		2,021		—		—		2,021
Net Revenue	$	86,306	$	21,586	$	11,685	$	119,577	$	157,848	$	27,240	$	22,480	$	207,568

	Three Months Ended June 30, 2017								Six Months Ended June 30, 2017
	Advertising		Live Events		Townsquare Interactive		Total		Advertising		Live Events		Townsquare Interactive		Total
Net Revenue (ex Political)	$	82,805	$	23,956	$	9,958	$	116,719	$	151,564	$	30,361	$	19,274	$	201,199
Political	584		—		—		584		1,033		—		—		1,033
Net Revenue	$	83,389	$	23,956	$	9,958	$	117,303	$	152,597	$	30,361	$	19,274	$	202,232

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet, after consideration of discontinued operations, for the adoption of Topic 606 were as follows (in thousands):

	As Reported December 31, 2017		Adjustment due to ASC 606		Balance at January 1, 2018
Assets
Prepaid expenses and other current assets	$	7,540	$	2,271	$	9,811
Total Current Assets	138,404		2,271		140,675
Total Assets	$	1,056,358	$	2,271	$	1,058,629
Total Liabilities	$	675,278	$	—	$	675,278
Equity
Retained earnings	$	13,265	$	2,271	$	15,536
Total stockholders' equity	381,080		2,271		383,351
Total liabilities and stockholders' equity	$	1,056,358	$	2,271	$	1,058,629

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	At Adoption January 1, 2018		June 30, 2018
Receivables	$	61,558	$	67,122
Short-term contract liabilities (deferred revenue)	$	17,281	$	12,248

XML

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property and equipment consisted of the following:

(in thousands)	December 31, 2017			June 30, 2018
Land and improvements	$	20,870		$	20,975
Buildings and leasehold improvements	40,567			41,369
Broadcast equipment	74,851			77,746
Computer and office equipment	13,198			13,951
Furniture and fixtures	13,894			15,624
Transportation equipment	13,509			15,100
Software development costs	15,943			18,704
Total property and equipment, gross	192,832			203,469
Less accumulated depreciation and amortization	(88,802		)	(95,577		)
Total property and equipment, net	$	104,030		$	107,892

XML

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Indefinite-Lived Intangible Assets

Intangible assets consist of the following:

(in thousands)	Estimated Useful Life	December 31, 2017		June 30, 2018
Intangible Assets:
FCC licenses	Indefinite	$	484,535	$	484,535
Customer and advertising relationships	10 years	14,317		14,317
Leasehold interests	5 to 39 years	1,085		1,085
Tower space	3 to 9 years	454		454
Sports broadcast rights	1 to 2 years	665		665
Non-compete agreements	1 to 2 years	243		243
Trademarks	15 years	8,675		8,675
Other intangibles	3 years	1,141		1,141
Total		511,115		511,115
Less: Accumulated amortization		(15,614)		(16,392		)
Net amount		$	495,501	$	494,723

Schedule of Finite-Lived Intangible Assets

Intangible assets consist of the following:

(in thousands)	Estimated Useful Life	December 31, 2017		June 30, 2018
Intangible Assets:
FCC licenses	Indefinite	$	484,535	$	484,535
Customer and advertising relationships	10 years	14,317		14,317
Leasehold interests	5 to 39 years	1,085		1,085
Tower space	3 to 9 years	454		454
Sports broadcast rights	1 to 2 years	665		665
Non-compete agreements	1 to 2 years	243		243
Trademarks	15 years	8,675		8,675
Other intangibles	3 years	1,141		1,141
Total		511,115		511,115
Less: Accumulated amortization		(15,614)		(16,392		)
Net amount		$	495,501	$	494,723

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of June 30, 2018 is as follows (in thousands):

2018 (remainder)	$	657
2019	1,313
2020	1,265
2021	1,256
2022	1,253
Thereafter	4,444
	$	10,188

XML

Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Long-term Debt Instruments

Total debt outstanding is summarized as follows:

(in thousands)	December 31, 2017			June 30, 2018
2023 Notes	$	280,079		$	280,079
Term Loans	291,851			282,332
Capitalized obligations	15			12
Debt before deferred financing costs	571,945			562,423
Deferred financing costs	(6,803		)	(5,948		)
Total debt	565,142			556,475
Less: current portion of long-term debt	(9,524		)	(5		)
Total long-term debt	$	555,618		$	556,470

Annual Maturities of Long-term Debt

Annual maturities of the Company's long-term debt as of June 30, 2018 are as follows (in thousands):

2018 (remainder)	$	3
2019	5
2020	5
2021	—
2022	282,332
Thereafter	280,079
	$	562,424

XML

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Schedule of Stockholders Equity

The table below presents a summary, as of June 30, 2018, of our authorized and outstanding common stock, and securities convertible into common stock, excluding options issued under our 2014 Omnibus Incentive Plan.

Security1	Par Value Per Share		Number Authorized	Number Outstanding	Description
Class A common stock	$	0.01	300,000,000	14,248,526	One vote per share.
Class B common stock	$	0.01	50,000,000	3,011,634	10 votes per share.2
Class C common stock	$	0.01	50,000,000	1,636,341	No votes.2
Warrants				8,977,676	Each warrant is exercisable for one share of Class A common stock, at an exercise price of $0.0001 per share. The aggregate exercise price for all warrants currently outstanding is $898.3
Total			400,000,000	27,874,177
1 Each of the shares of common stock, including the shares of Class A common stock issuable upon exercise of the warrants, have equal economic rights.
2 Each share converts into one share of Class A common stock upon transfer or at the option of the holder, subject to certain conditions, including compliance with FCC rules.
3 The warrants are fully vested and exercisable for shares of Class A common stock, subject to certain conditions, including compliance with FCC rules.

Schedule of Stock Options Activity

The following table summarizes stock option activity for the six months ended June 30, 2018:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at January 1, 2018	8,544,225		$	9.50	6.11	$	—
Granted	1,342,000		6.38
Exercised	—		—
Forfeited	(174,940	)	9.36
Outstanding at June 30, 2018	9,711,285		$	9.07	6.13	$	203,200

XML

Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued expenses and other current liabilities consist of the following:

(in thousands)	December 31, 2017		June 30, 2018
Accrued compensation and benefits	$	10,629	$	6,594
Accrued professional fees	1,057		869
Accrued commissions	2,010		2,324
Accrued taxes	2,039		2,356
Accrued music and FCC licensing	251		2,003
Accrued publisher fees	2,752		2,652
Accrued national representation fees	947		875
Due to sellers, business combinations	291		3
Deferred rent	1,951		1,923
Dividends payable	—		2,123
Accrued other	2,992		3,750
	$	24,919	$	25,472

XML

Lease and Other Commitments (Tables)

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

At June 30, 2018, the total minimum annual rental commitments under non-cancelable operating leases are as follows (in thousands):

2018 (remainder)	$	4,980
2019	9,236
2020	7,056
2021	5,400
2022	4,401
Thereafter	14,422
Total minimum payments	$	45,495

XML

Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The following table shows the components of assets and liabilities that are related to discontinued operations in the Company's Consolidated Balance Sheets:

(in thousands)	December 31, 2017		June 30, 2018
Cash and cash equivalents	$	4,090	$	228
Accounts receivable	183		18
Prepaid expenses and other current assets	3,828		10
Current assets of discontinued operations	8,101		256
Property and Equipment, net	42,962		—
Intangible assets, net	14,053		—
Other non-current assets	2,463		—
Long term assets of discontinued operations	59,478		—
Accounts payable	1,116		—
Accrued expenses and other current liabilities	1,324		3,038
Current liabilities of discontinued operations	2,440		3,038
Other long-term liabilities	10,682		—
Long term liabilities of discontinued operations	10,682		—
Net assets	$	54,457	$	(2,782	)

The following table shows the components of operations that are related to discontinued operations in the Company's Consolidated Statement of Operations:

	Three Months Ended   June 30,						Six Months Ended June 30,
	2017			2018			2017			2018
Net revenue	$23,360			$9,666			$26,848			$15,901
Discontinued operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	25,538			15,856			33,568			27,565
Depreciation and amortization	1,677			437			3,279			2,176
Stock-based compensation	8			4			15			11
Impairment of long lived and intangible assets	—			—			—			37,972
Net loss on sale and retirement of assets	—			423			—			423
Discontinued operating loss	(3,863		)	(7,054		)	(10,014		)	(52,246		)
Other expense:
Interest expense, net	—			—			—			(1		)
Other expense, net	(23		)	12			(26		)	24
Loss from discontinued operations before income taxes	(3,840		)	(7,066		)	(9,988		)	(52,269		)
Benefit from income taxes	(1,603		)	1,375			(4,093		)	(14,436		)
Net loss from discontinued operations	$	(2,237	)	$	(8,441	)	$	(5,895	)	$	(37,833	)

XML

Net Income (Loss) Per Common Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Schedule of Unaudited Pro Forma Earnings Per Share

The following table sets forth the computations of basic and diluted net income (loss) per share for the three and six months ended June 30, 2017 and 2018.

(in thousands, except per share data)	Three Months Ended   June 30,						Six Months Ended   June 30,
	2017			2018			2017			2018
Numerator:
Net income (loss) from continuing operations	7,800			10,075			8,451			12,877
Net (loss) income from discontinued operations, net of income taxes	(2,237		)	(8,441		)	(5,895		)	(37,833		)
Net income (loss)	$	5,563		$	1,634		$	2,556		$	(24,956	)
Denominator:
Weighted average shares of common stock outstanding	18,470			18,633			18,450			18,563
Effect of dilutive common stock equivalents	9,975			8,978			10,048			8,978
Weighted average diluted common shares outstanding	28,445			27,611			28,498			27,541
Basic income (loss) per share:
Continuing operations	$	0.42		$	0.54		$	0.46		$	0.69
Discontinued operations	(0.12		)	(0.45		)	(0.32		)	(2.04		)
Diluted income per share:
Continuing operations	$	0.27		$	0.36		$	0.30		$	0.47
Discontinued operations	(0.08		)	(0.31		)	(0.21		)	$	(1.37	)

XML

Organization and Basis of Presentation - Nature of Business (Details) attendee in Millions	Jun. 30, 2018 radio_station market attendee event website
Organization and Basis of Presentation [Line Items]
Number of radio stations | radio_station	320
Number of search engine and mobile-optimized local websites (more than) | website	330
Number of small and mid-sized markets in which entity operates	13,650
Number of live events | event	200
Number of annual attendees at live events (more than) | attendee	1
United States
Organization and Basis of Presentation [Line Items]
Number of small and mid-sized markets	67

XML

Summary of Significant Accounting Policies - Impairment of Long Lived and Intangible Assets (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Accounting Policies [Abstract]
Impairment charge	$ 38.0

XML

Summary of Significant Accounting Policies - Discontinued Operations (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($) segment
Segment Reporting Information [Line Items]
Number of operating segments | segment					2
Discontinued Operations
Segment Reporting Information [Line Items]
Net revenue	$ 9,666	$ 23,360	$ 15,901	$ 26,848
Operating income	$ (7,054)	(3,863)	$ (52,246)	$ (10,014)
NAME | Discontinued Operations, Disposed of by Sale
Segment Reporting Information [Line Items]
Net revenue					$ 92,200
Operating income		$ 7,300
Mountain Jam | Discontinued Operations
Segment Reporting Information [Line Items]
Net revenue					3,800
Operating income					$ 0

XML

Summary of Significant Accounting Policies - Cumulative Effect of Changes for the Adoption of ASU 2014-09 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
ASSETS
Prepaid expenses and other current assets	$ 10,670		$ 10,670		$ 9,811	$ 7,540
Total Current Assets	140,492		140,492		140,675	138,404
Total Assets	1,007,545		1,007,545		1,058,629	1,056,358
Total Liabilities	657,204		657,204		675,278	675,278
Equity
Retained earnings (deficit)	(14,158)		(14,158)		15,536	13,265
Total stockholders' equity	350,341		350,341		383,351	381,080
Total liabilities and stockholders' equity	1,007,545		1,007,545		1,058,629	1,056,358
Net income (loss)	$ 1,634	$ 5,563	(24,956)	$ 2,556
As Reported December 31, 2017
ASSETS
Total Current Assets						138,404
Total Assets						1,056,358
Total Liabilities						675,278
Equity
Total stockholders' equity						381,080
Total liabilities and stockholders' equity						$ 1,056,358
Accounting Standards Update 2014-09
Equity
Operating expenses			300
Net income (loss)			$ 300
Accounting Standards Update 2014-09 | Adjustment due to ASC 606
ASSETS
Prepaid expenses and other current assets					2,271
Total Current Assets					2,271
Total Assets					2,271
Total Liabilities					0
Equity
Retained earnings (deficit)					2,271
Total stockholders' equity					2,271
Total liabilities and stockholders' equity					$ 2,271

XML

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Net Revenue	$ 119,577	$ 117,303	$ 207,568	$ 202,232
Advertising
Disaggregation of Revenue [Line Items]
Net Revenue	86,306	83,389	157,848	152,597
Live Events
Disaggregation of Revenue [Line Items]
Net Revenue	21,586	23,956	27,240	30,361
Townsquare Interactive
Disaggregation of Revenue [Line Items]
Net Revenue	11,685	9,958	22,480	19,274
Excluding political
Disaggregation of Revenue [Line Items]
Net Revenue	118,256	116,719	205,547	201,199
Excluding political | Advertising
Disaggregation of Revenue [Line Items]
Net Revenue	84,985	82,805	155,827	151,564
Excluding political | Live Events
Disaggregation of Revenue [Line Items]
Net Revenue	21,586	23,956	27,240	30,361
Excluding political | Townsquare Interactive
Disaggregation of Revenue [Line Items]
Net Revenue	11,685	9,958	22,480	19,274
Political
Disaggregation of Revenue [Line Items]
Net Revenue	1,321	584	2,021	1,033
Political | Advertising
Disaggregation of Revenue [Line Items]
Net Revenue	1,321	584	2,021	1,033
Political | Live Events
Disaggregation of Revenue [Line Items]
Net Revenue	0	0	0	0
Political | Townsquare Interactive
Disaggregation of Revenue [Line Items]
Net Revenue	$ 0	$ 0	$ 0	$ 0

XML

Revenue Recognition - Summary of Receivables, Contract Assets and Contract Liabilities from Contracts (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Receivables	$ 67,122	$ 61,558	$ 61,558
Short-term contract liabilities (deferred revenue)	$ 12,248	$ 17,281	$ 17,281

XML

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Recognized revenue	$ 7.2	$ 12.6
Deferred costs			$ 2.3
Recognized amortization	$ 0.5	$ 1.1

XML

Interim Financial Data - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Barter revenue	$ 7.5	$ 6.8	$ 14.7	$ 11.6
Barter expenses	$ 4.0	$ 3.9	$ 7.4	$ 6.6

XML

Investments - Narrative (Details) $ in Millions	May 17, 2018 USD ($)
Investments, All Other Investments [Abstract]
Preferred stock aggregate value	$ 3.2

XML

Property and Equipment - Schedule of Physical Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 203,469	$ 192,832
Less accumulated depreciation and amortization	(95,577)	(88,802)
Total property and equipment, net	107,892	104,030
Land and improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	20,975	20,870
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	41,369	40,567
Broadcast equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	77,746	74,851
Computer and office equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	13,951	13,198
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	15,624	13,894
Transportation equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	15,100	13,509
Software development costs
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 18,704	$ 15,943

XML

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 4.3	$ 4.6	$ 8.5	$ 8.8
Asset impairment charges	$ 25.6

XML

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 241,888			$ 241,888		$ 241,888
Amortization of intangible assets	$ 400		$ 600	$ 800	$ 1,200
Impairment charge of intangible assets		$ 12,400

XML

Goodwill and Other Intangible Assets - Schedule of Finite Lived and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Indefinite-lived Intangible Assets [Line Items]
Total	$ 511,115	$ 511,115
Less: Accumulated amortization	(16,392)	(15,614)
Net amount	494,723	495,501
FCC licenses
Indefinite-lived Intangible Assets [Line Items]
Gross indefinite-lived intangible assets	484,535	484,535
Customer and advertising relationships
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 14,317	14,317
Intangible asset useful life	10 years
Leasehold interests
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 1,085	1,085
Leasehold interests | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	5 years
Leasehold interests | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	39 years
Tower space
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 454	454
Tower space | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	3 years
Tower space | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	9 years
Sports broadcast rights
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 665	665
Sports broadcast rights | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	1 year
Sports broadcast rights | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	2 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 243	243
Non-compete agreements | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	1 year
Non-compete agreements | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	2 years
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 8,675	8,675
Intangible asset useful life	15 years
Other intangibles
Finite-Lived Intangible Assets [Line Items]
Gross finite-lived intangible assets	$ 1,141	$ 1,141
Intangible asset useful life	3 years

XML

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018 (remainder)	$ 657
2019	1,313
2020	1,265
2021	1,256
2022	1,253
Thereafter	4,444
Total	$ 10,188

XML

Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Debt before deferred financing costs	$ 562,423	$ 571,945
Capitalized obligations	12	15
Deferred financing costs	(5,948)	(6,803)
Total debt	556,475	565,142
Less: current portion of long-term debt	(5)	(9,524)
Total long-term debt	556,470	555,618
2023 Notes
Debt Instrument [Line Items]
Debt before deferred financing costs	280,079	280,079
Term Loans
Debt Instrument [Line Items]
Debt before deferred financing costs	$ 282,332	$ 291,851

XML

Long-Term Debt - Narrative (Details) - USD ($)			3 Months Ended	6 Months Ended		12 Months Ended
	Feb. 08, 2017	Apr. 01, 2015	Mar. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Sep. 01, 2015
Debt Instrument [Line Items]
Write off of unamortized deferred financing costs				$ 400,000
Amortization of deferred financing costs			$ 100,000	$ 761,000	$ 851,000
2023 Notes
Debt Instrument [Line Items]
Requirement to repurchase notes, percentage				101.00%
Term Loan | Seven Year Term Loan Facility
Debt Instrument [Line Items]
Debt amount		$ 275,000,000.0
Debt term		7 years
Decrease in interest rate	0.25%
Repayments of long-term debt						$ 9,500,000
Term Loan | Seven Year Term Loan Facility | LIBOR
Debt Instrument [Line Items]
Variable rate floor	1.00%			5.09%
Basis spread on variable rate	3.00%
Term Loan | 2015 Incremental Term Loan
Debt Instrument [Line Items]
Debt amount							$ 45,000,000.0
Revolving Credit Facility | Five Year Revolving Credit Facility
Debt Instrument [Line Items]
Debt term		5 years
Line of credit, borrowing capacity		$ 50,000,000.0
Revolving Credit Facility | Five Year Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate				2.50%
Revolving Credit Facility | Five Year Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate				1.50%
Senior Notes | 2023 Notes
Debt Instrument [Line Items]
Debt amount		$ 300,000,000.0
Stated interest rate		6.50%
Debt fair value				$ 255,600,000
Term Loans | 2023 Notes
Debt Instrument [Line Items]
Debt fair value				$ 282,000,000.0

XML

Long-Term Debt - Schedule of Maturities of Long Term Debt (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Debt Disclosure [Abstract]
2018 (remainder)	$ 3
2019	5
2020	5
2021	0
2022	282,332
Thereafter	280,079
Long-term debt	$ 562,424

XML

Stockholders' Equity - Schedule of Stockholders Equity (Details)	6 Months Ended
	Jun. 30, 2018 USD ($) vote / shares $ / shares shares	Dec. 31, 2017 $ / shares shares
Class of Stock [Line Items]
Common shares authorized (in shares)	400,000,000
Total common stock and warrants outstanding (in shares)	27,874,177
Warrants, number of shares exercisable (in shares)	1
Exercise prices per warrant (in dollars per share) | $ / shares	$ 0.0001
Aggregate exercise price of all warrants | $	$ 898
Warrants
Class of Stock [Line Items]
Warrants outstanding (in shares)	8,977,676
Class A common stock
Class of Stock [Line Items]
Common par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01
Common shares authorized (in shares)	300,000,000	300,000,000
Common shares outstanding (in shares)	14,248,526	13,819,639
Number of votes per share | vote / shares	1
Class B common stock
Class of Stock [Line Items]
Common par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares outstanding (in shares)	3,011,634	3,022,484
Number of votes per share | vote / shares	10
Class C common stock
Class of Stock [Line Items]
Common par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares outstanding (in shares)	1,636,341	1,636,341
Number of votes per share | vote / shares	0

XML

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	May 07, 2018	Mar. 12, 2018	May 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Class of Stock [Line Items]
Dividends declared (in dollars per share)		$ 0.075		$ 75.000	$ 0	$ 150	$ 0
Dividends declared	$ 2,100	$ 2,100				$ 4,184
Annual dividend yield, (in dollars per share)						$ 0.30
Stock-based compensation expense				$ 246	$ 175	$ 436	$ 356
Unrecognized stock-based compensation expense				$ 7,200		$ 7,200
Weighted average grant date fair value (in dollars per share)				$ 9.07		$ 9.07		$ 9.50
Restricted stock share commitments						$ 100
2014 Omnibus Incentive Plan
Class of Stock [Line Items]
Shares authorized (in shares)				12,000,000		12,000,000
Shares available for grant (in shares)				1,827,600		1,827,600
Minimum
Class of Stock [Line Items]
Options outstanding, exercise price (in dollars per share)				$ 6.31		$ 6.31
Minimum | 2014 Omnibus Incentive Plan
Class of Stock [Line Items]
Options outstanding, exercise price (in dollars per share)				6.31		6.31
Maximum
Class of Stock [Line Items]
Options outstanding, exercise price (in dollars per share)				10.62		10.62
Maximum | 2014 Omnibus Incentive Plan
Class of Stock [Line Items]
Options outstanding, exercise price (in dollars per share)				$ 10.62		$ 10.62
Class A common stock
Class of Stock [Line Items]
Shares issuable upon exercise of stock options (in shares)				4,600,049		4,600,049
Common Class B
Class of Stock [Line Items]
Shares issuable upon exercise of stock options (in shares)				5,111,236		5,111,236
Preferred Stock
Class of Stock [Line Items]
Preferred shares authorized (in shares)				50,000,000		50,000,000
Restricted Stock
Class of Stock [Line Items]
Weighted average grant date fair value (in dollars per share)				$ 6.38		$ 6.38
Restricted Stock
Class of Stock [Line Items]
Shares outstanding (in shares)				418,037		418,037
Unrecognized stock-based compensation expense				$ 2,600		$ 2,600
Restricted Stock | 2014 Omnibus Incentive Plan
Class of Stock [Line Items]
Shares issued during period (in shares)			400,000
Restricted Stock | Minimum
Class of Stock [Line Items]
Unrecognized share-based compensation expense recognition period						4 years
Restricted Stock | Maximum
Class of Stock [Line Items]
Unrecognized share-based compensation expense recognition period						5 years
Share-based Compensation Award, Tranche One
Class of Stock [Line Items]
Vesting percentage						50.00%
Vesting term						3 years
Share-based Compensation Award, Tranche One | Restricted Stock
Class of Stock [Line Items]
Vesting percentage						25.00%
Vesting term								4 years
Options expected to vest (in shares)				400,000		400,000
Share-based Compensation Award, Tranche Two
Class of Stock [Line Items]
Vesting percentage						50.00%
Vesting term						4 years
Share-based Compensation Award, Tranche Two | Restricted Stock
Class of Stock [Line Items]
Vesting term								5 years
Share-based Compensation Award, Tranche Three
Class of Stock [Line Items]
Vesting percentage						25.00%
Vesting term						4 years
Options expected to vest (in shares)				1,200,000		1,200,000

XML

Stockholders' Equity - Stock Option Activity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Shares
Outstanding, beginning balance (in shares)	8,544,225
Granted (in shares)	1,342,000
Exercised (in shares)	0
Forfeited (in shares)	(174,940)
Outstanding, ending balance (in shares)	9,711,285	8,544,225
Weighted Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 9.50
Granted (in dollars per share)	6.38
Exercised (in dollars per share)	0
Forfeited (in dollars per share)	9.36
Outstanding, ending balance (in dollars per share)	$ 9.07	$ 9.50
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Life (years)	6 years 1 month 17 days	6 years 1 month 9 days
Aggregate Intrinsic Value	$ 203,200	$ 0

XML

Income Taxes - Narrative (Details)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	27.20%	41.20%

XML

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 6,594	$ 10,629
Accrued professional fees	869	1,057
Accrued commissions	2,324	2,010
Accrued taxes	2,356	2,039
Accrued music and FCC licensing	2,003	251
Accrued publisher fees	2,652	2,752
Accrued national representation fees	875	947
Due to sellers, business combinations	3	291
Deferred rent	1,923	1,951
Dividends declared during the period	2,123	0
Accrued other	3,750	2,992
Accrued expenses and other current liabilities	$ 25,472	$ 24,919

XML

Lease and Other Commitments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Total rent expense	$ 4.3	$ 4.8	$ 8.0	$ 8.7
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase commitment, remaining obligation	20.7		20.7
Other Broadcasting Services
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase commitment, remaining obligation	2.3		2.3
Purchased Software
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase commitment, remaining obligation	$ 11.5		$ 11.5

XML

Lease and Other Commitments - Operating Leases (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Leases, 2018 (remainder)	$ 4,980
Leases, 2019	9,236
Leases, 2020	7,056
Leases, 2021	5,400
Leases, 2022	4,401
Leases, Thereafter	14,422
Total minimum payments	$ 45,495

XML

Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands			6 Months Ended
	Jun. 29, 2018	May 24, 2018	Jun. 30, 2018	Jun. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase and sale payment			$ 3,724	$ 2,157
Heartland Group, LLC and Subsidiary North American Fairs, LLC | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration transferred		$ 23,500
Right to sale proceeds of subsidiary, percent		15.00%
Right to sale proceeds of subsidiary, maximum period of time		10 years
NAME | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on disposition of business		$ (1,900)
Mountain Jam | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on disposition of business	$ 1,200
Ownership percentage before transaction	70.00%
Taste Of Country Productions LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Minority ownership percentage acquired	30.00%
Purchase and sale payment	$ 1,300

XML

Discontinued Operations - Components of Assets and Liabilities Related to Discontinued Operations (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Current assets of discontinued operations	$ 256	$ 7,222
Long term assets of discontinued operations	0	59,478
Current liabilities of discontinued operations	3,038	2,440
Long term liabilities of discontinued operations	0	10,682
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and cash equivalents	228	4,090
Accounts receivable	18	183
Prepaid expenses and other current assets	10	3,828
Current assets of discontinued operations	256	8,101
Property and Equipment, net	0	42,962
Intangible assets, net	0	14,053
Other non-current assets	0	2,463
Long term assets of discontinued operations	0	59,478
Accounts payable	0	1,116
Accrued expenses and other current liabilities	3,038	1,324
Current liabilities of discontinued operations	3,038	2,440
Other long-term liabilities	0	10,682
Long term liabilities of discontinued operations	0	10,682
Net assets	$ (2,782)	$ 54,457

XML

Discontinued Operations - Components of Operations Related to Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Discontinued operating costs and expenses:
Impairment of long lived and intangible assets	$ 25,600
Other expense:
Net loss from discontinued operations	(8,441)	$ (2,237)	$ (37,833)	$ (5,895)
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue	9,666	23,360	15,901	26,848
Discontinued operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	15,856	25,538	27,565	33,568
Depreciation and amortization	437	1,677	2,176	3,279
Stock-based compensation	4	8	11	15
Impairment of long lived and intangible assets	0	0	37,972	0
Net loss on sale and retirement of assets	423	0	423	0
Discontinued operating loss	(7,054)	(3,863)	(52,246)	(10,014)
Other expense:
Interest expense, net	0	0	(1)	0
Other expense, net	12	(23)	24	(26)
Loss from discontinued operations before income taxes	(7,066)	(3,840)	(52,269)	(9,988)
Benefit from income taxes	1,375	(1,603)	(14,436)	(4,093)
Net loss from discontinued operations	$ (8,441)	$ (2,237)	$ (37,833)	$ (5,895)

XML

Net Income (Loss) Per Common Share - Schedule of Computations of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net income (loss) from continuing operations	$ 10,075	$ 7,800	$ 12,877	$ 8,451
Net (loss) income from discontinued operations, net of income taxes	(8,441)	(2,237)	(37,833)	(5,895)
Net income (loss)	$ 1,634	$ 5,563	$ (24,956)	$ 2,556
Denominator:
Weighted average shares outstanding, basic (in shares)	18,633	18,470	18,563	18,450
Effect of dilutive common stock equivalents (in shares)	8,978	9,975	8,978	10,048
Weighted average diluted common shares outstanding (in shares)	27,611	28,445	27,541	28,498
Basic income (loss) per share:
Continuing operations (in dollars per share)	$ 0.54	$ 0.42	$ 0.69	$ 0.46
Discontinued operations (in dollars per share)	(0.45)	(0.12)	(2.04)	(0.32)
Diluted income per share:
Continuing operations (in dollars per share)	0.36	0.27	0.47	0.30
Discontinued operations (in dollars per share)	$ (0.31)	$ (0.08)	$ (1.37)	$ (0.21)

XML

Subsequent Events - Narrative (Details) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended
	Aug. 07, 2018 USD ($) $ / shares	Jul. 02, 2018 USD ($) radio_station	Mar. 12, 2018 $ / shares	Jun. 30, 2018 USD ($) $ / shares	Jun. 30, 2017 $ / shares	Jun. 30, 2018 USD ($) $ / shares	Jun. 30, 2017 $ / shares	Dec. 31, 2017 USD ($)
Subsequent Event [Line Items]
Dividends declared (in dollars per share) | $ / shares			$ 0.075	$ 75.000	$ 0	$ 150	$ 0
Dividends declared during the period				$ 2,123		$ 2,123		$ 0
Subsequent Event
Subsequent Event [Line Items]
Dividends declared (in dollars per share) | $ / shares	$ 0.075
Dividends declared during the period	$ 2,100
Subsequent Event | Connoisseur Media, LLC
Subsequent Event [Line Items]
Number of radio stations acquired | radio_station		3
Consideration transferred		$ 17,300