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 March 31, 2019 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	x
		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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.01 par value per share	TSQ	The New York Stock Exchange

As of May 6, 2019, the registrant had 18,961,819 outstanding shares of common stock consisting of: (i)14,313,844 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, 2018 and March 31, 2019	1
	Consolidated Statements of Operations for the three months ended March 31, 2018 and 2019	2
	Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2018 and 2019	3
	Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2019	4
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 4.	Controls and Procedures	29
PART II OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults upon Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	30
	Signatures	31

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, 2018			March 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	61,396		$	60,808
Accounts receivable, net of allowance of $3,454 and $3,187, respectively	62,459			56,167
Prepaid expenses and other current assets	8,939			10,150
Current assets held for sale	19,763			10,185
Total current assets	152,557			137,310
Property and equipment, net	112,377			112,771
Intangible assets, net	478,938			478,376
Goodwill	226,981			226,981
Investments	9,505			11,775
Operating lease right-of-use assets	—			45,724
Other assets	6,909			294
Total assets	$	987,267		$	1,013,231
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	13,393		$	12,828
Current portion of long-term debt	5			5
Deferred revenue	7,922			8,726
Accrued expenses and other current liabilities	32,749			17,778
Short-term operating lease liabilities	—			8,980
Accrued interest	4,563			9,169
Current liabilities held for sale	6,931			10,375
Current liabilities of discontinued operations	207			203
Total current liabilities	65,770			68,064
Long-term debt, less current portion (net of deferred finance costs of $5,155 and $4,779, respectively)	555,330			555,705
Deferred tax liability	16,031			14,424
Long-term operating lease liabilities	—			39,785
Other long-term liabilities	8,559			1,788
Total liabilities	645,690			679,766
Stockholders’ equity:
Class A common stock, par value $0.01 per share; 300,000,000 shares authorized; 14,297,066 and 14,313,844 shares issued and outstanding as of December 31, 2018 and March 31, 2019, respectively	143			143
Class B common stock, par value $0.01 per share; 50,000,000 shares authorized; 3,011,634 shares issued and outstanding	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	190			190
Additional paid-in capital	365,835			366,711
Retained deficit	(25,735		)	(33,883		)
Non-controlling interest	1,287			447
Total stockholders’ equity	341,577			333,465
Total liabilities and stockholders’ equity	$	987,267		$	1,013,231

See Notes to Unaudited Consolidated Financial Statements

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TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in Thousands, Except Per Share Data)

(unaudited)

	Three Months Ended   March 31,
	2018			2019
Net revenue	$	87,983		$	93,682
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	64,356			68,629
Depreciation and amortization	4,383			6,508
Corporate expenses	5,649			5,587
Stock-based compensation	190			876
Transaction costs	159			148
Business realignment costs	—			4
Net (gain) loss on sale and retirement of assets	(10		)	19
Total operating costs and expenses	74,727			81,771
Operating income	13,256			11,911
Other expense:
Interest expense, net	8,427			8,595
Other expense, net	32			34
Income from continuing operations before income taxes	4,797			3,282
Provision for income taxes	1,330			908
Net income from continuing operations	3,467			2,374
Net loss from discontinued operations, net of income taxes	(30,056		)	(7,164		)
Net loss	$	(26,589	)	$	(4,790	)
Net (loss) income attributable to:
Controlling interests	$	(26,807	)	$	(5,237	)
Non-controlling interests	218			447
Basic income (loss) per share:
Continuing operations	$	0.19		$	0.13
Discontinued operations	$	(1.63	)	$	(0.39	)
Diluted income (loss) per share:
Continuing operations	$	0.13		$	0.09
Discontinued operations	$	(1.09	)	$	(0.26	)
Weighted average shares outstanding:
Basic	18,478			18,478
Diluted	27,456			27,456
Cash dividend declared per share	$	0.075		$	0.075

See Notes to Unaudited Consolidated Financial Statements

2

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS 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
January 1, 2018	13,819,639	3,022,484	1,636,341	8,977,676	$	185	$	367,041	$	13,265			$	(532	)	$	1,121		$	381,080
Adjustments of equity pursuant to adoption of ASC 606*	—	—	—	—	—		—		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	—	—	—	—	—		—		(26,807		)		—			218			(26,589		)
Dividends declared	—	—	—	—	—		—		(2,061		)		—			—			(2,061		)
Stock-based compensation	—	—	—	—	—		190		—			—	—			—			190
Issuance of restricted stock	18,037	—	—	—	—		—		—				—			—			—
Foreign currency exchange	—	—	—	—	—		—		—				(126		)	—			(126		)
Cash distributions to non-controlling interests	—	—	—	—	—		—		—				—			(27		)	(27		)
Balance at March 31, 2018	13,837,676	3,022,484	1,636,341	8,977,676	$	185	$	367,231	$	(13,332	)		$	(658	)	$	1,312		$	354,738

	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
January 1, 2019	14,297,066	3,011,634	1,636,341		8,977,676	$	190	$	365,835	$	(25,735	)	$	—		$	1,287		$	341,577
Adjustments of equity pursuant to adoption of ASC 842**	—	—	—		—	—		—		(816		)	—			—			(816		)
Net (loss) income	—	—	—	—	—	—		—		(5,237		)	—			447			(4,790		)
Dividends declared	—	—	—		—	—		—		(2,095		)	—			—			(2,095		)
Stock-based compensation	—	—	—	—	—	—		876		—			—			—			876
Issuance of restricted stock	16,778	—	—		—	—		—		—			—			—			—
Cash distributions to non-controlling interests	—	—	—		—	—		—		—			—		—	(1,287		)	(1,287		)
Balance at March 31, 2019	14,313,844	3,011,634	1,636,341		8,977,676	$	190	$	366,711	$	(33,883	)	$	—		$	447		$	333,465

*See Note 3

**See Note 13

See Notes to Unaudited Consolidated Financial Statements

3

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in Thousands)

(unaudited)

	Three Months Ended   March 31,
	2018			2019
Cash flows from operating activities:
Net (loss) income	$	(26,589	)	$	(4,790	)
Loss from discontinued operations	(30,056		)	(7,164		)
Income from continuing operations	3,467			2,374
Adjustments to reconcile income from continuing operations to net cash flows from operating activities
Depreciation and amortization	4,383			6,508
Amortization of deferred financing costs	382			376
Net deferred taxes and other	1,330			908
Provision for doubtful accounts	549			243
Stock-based compensation expense	190			876
Trade activity, net	(3,835		)	(2,503		)
Non-cash interest expense	(5		)	—
Write-off of deferred financing costs	97			—
Net (gain) loss on sale of assets	(10		)	19
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	7,902			6,862
Prepaid expenses and other assets	(2,865		)	(1,847		)
Accounts payable	(2,720		)	(563		)
Accrued expenses	(7,617		)	(14,617		)
Accrued interest	3,549			4,607
Other long-term liabilities	(208		)	809
Net cash provided by operating activities - continuing operations	4,589			4,052
Net cash (used in) provided by operating activities - discontinued operations	(5,169		)	1,890
Net cash (used in) provided by operating activities	(580		)	5,942
Cash flows from investing activities:
Purchase of property and equipment	(4,420		)	(5,033		)
Payments for acquisitions, net of cash acquired	(48		)	(3		)
Proceeds from sale of assets	50			63
Net cash used in investing activities - continuing operations	(4,418		)	(4,973		)
Net cash (used in) provided by investing activities - discontinued operations	(1,020		)	1,790
Net cash used in investing activities	(5,438		)	(3,183		)
Cash flows from financing activities:
Repayment of bank debt	(9,519		)	—
Dividend payments	—			(2,059		)
Cash distribution to non-controlling interest	(8		)	(1,287		)
Repayments of capitalized obligations	(1		)	(1		)
Net cash used in financing activities - continuing operations	(9,528		)	(3,347		)
Net cash used in financing activities - discontinued operations	(19		)	—
Net cash used in financing activities	(9,547		)	(3,347		)
Effect of exchange rate changes	3			—
Net decrease in cash and cash equivalents	(15,562		)	(588		)
Cash and cash equivalents:
Beginning of period	62,041			61,396
End of period	$	46,479		$	60,808

See Notes to Unaudited Consolidated Financial Statements

4

TOWNSQUARE MEDIA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in Thousands)

(unaudited)

	Three Months Ended   March 31,
	2018		2019
Supplemental Disclosure of Cash Flow Information:
Cash payments:
Interest	$	4,434	$	3,889
Income taxes	32		68
Supplemental Disclosure of Non-cash Activities:
Dividends declared during the period	$	2,061	$	2,095

See Notes to Unaudited Consolidated Financial Statements

5

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 U.S. Our assets include 321 radio stations and more than 330 local websites in 67 U.S. markets, a digital marketing solutions company (Townsquare Interactive) serving approximately 16,200 small to medium sized businesses, a proprietary digital programmatic advertising platform (Townsquare Ignite), and approximately 200 local live events each year. Our brands include local media assets such as WYRK, KLAQ, K2 and NJ101.5; iconic local and regional events such as the WYRK's Taste of Country, the Boise Music Festival, the Red Dirt BBQ & Music Festival and Taste of Fort Collins; and leading tastemaker music and entertainment websites such as XXLmag.com, TasteofCountry.com and Loudwire.com. For more information, please visit www.townsquaremedia.com, www.townsquareinteractive.com, and www.townsquareignite.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, 2018. 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, 2018 (the "2018 Annual Report on Form 10-K") filed with the Securities and Exchange Commission ("SEC") on March 12, 2019.

Recently Issued Accounting Standards

In January 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-01, Leases (Topic 842): Codification Improvements. This new guidance includes a codification improvement to the transition guidance in ASC 842 to clarify that entities adopting ASC 842 do not need to provide interim-period disclosures required by ASC 250, which states in the fiscal year in which a new accounting principle is adopted, financial information reported for interim periods after the date of adoption shall disclose the effect of the change on income from continuing operations, net income (or other appropriate captions of changes in the applicable net assets or performance indicator), and related per-share amounts, if applicable, for those post-change interim periods. Accordingly, interim disclosures about the effect on income in the year of adoption of ASC 842 are excluded from the required disclosures in transition, in a manner similar to the annual disclosures in ASC 250. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company does not believe ASU 2019-01 will have an impact on its consolidated financial statements.

Change in Accounting Policy

Segment Reporting

Operating segments are organized internally by type of products and services provided.  On January 2, 2019, the Company announced that its former Co-Chief Executive Officer (“CEO”) Dhruv Prasad resigned and that its other Co-CEO Bill Wilson would become the Company’s sole CEO.  As a result of these organization changes, Bill Wilson also became the Company’s Chief Operating Decision Maker (“CODM”).  Based on the information reviewed by Mr. Wilson in his capacity as CODM, the Company has identified three reportable operating segments, which are Advertising, which includes broadcast and digital advertising products and solutions, Townsquare Interactive, which is our digital marketing solutions business and Live Events, which is comprised of the Company’s live events, including concerts, expositions and other experiential events.  The Company has concluded that each of these operating segments shall be presented separately. Prior year segment reporting has been restated to conform with the current year presentation.  

Leases

In February 2016, the FASB issued 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 ("ROU") 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 ASC Topic 840. The standard is effective

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for fiscal years beginning after December 15, 2018, and allows a number of practical expedients that the Company has elected to apply. The guidance ASU 2018-11, Leases (Topic 842): Targeted Improvements, which amends ASC 842 provides entities with an optional transition method for adopting the new lease standard by allowing entities to apply the new guidance at the adoption date by recognizing a cumulative-effect adjustment to the opening balance of retained earnings and not to restate comparative periods presented. The Company adopted the standard using the optional transition method as of January 1, 2019, using the package of practical expedients as well as several other permitted practical expedients that allow for a more simplified transition. Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. As a result of the adoption of the new lease accounting guidance, the Company recognized at adoption (a) a lease liability of approximately $48.4 million, which represents the present value of the remaining lease payments, discounted at a weighted average discount rate of 7.04%, and (b) a ROU asset of approximately $45.4 million which represents the lease liability of $48.4 million adjusted for accrued rent of approximately $2.9 million. The Company recorded an adjustment of $0.8 million at the adoption date of January 1, 2019 to stockholders equity to properly account for the Company's operating lease ROU assets and operating lease liabilities. The most significant impact of this standard was the recognition of ROU assets and lease obligations for operating leases.

Note 3. Revenue Recognition

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

	Three Months Ended March 31, 2018
	Advertising		Townsquare Interactive		Live Events		Total
Net Revenue (ex Political)	$	70,841	$	10,796	$	5,646	$	87,283
Political	700		—		—		700
Net Revenue	$	71,541	$	10,796	$	5,646	$	87,983

	Three Months Ended March 31, 2019
	Advertising		Townsquare Interactive		Live Events		Total
Net Revenue (ex Political)	$	74,017	$	14,208	$	5,159	$	93,384
Political	298		—		—		298
Net Revenue	$	74,315	$	14,208	$	5,159	$	93,682

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 on a subscription basis under the brand name Townsquare Interactive, digital marketing solutions 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 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.

7

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 based on the episodic nature of 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 mostly single day events, but some are multi-day 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 months ended March 31, 2018 and 2019.

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

	At Adoption January 1, 2018		March 31, 2018		December 31, 2018		March 31, 2019
Receivables	$	60,492	$	53,788	$	62,459	$	56,167
Short-term contract liabilities (deferred revenue)	$	7,992	$	7,973	$	7,922	$	8,726

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 ended March 31, 2018 and 2019.

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

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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 adoption January 1, 2018 is primarily driven by $5.4 million of recognized revenue for the three months ended March 31, 2018, offset by cash payments received or due in advance of satisfying our performance obligations. The increase in the contract liabilities balance that was included in the deferred revenue balance at December 31, 2018 is primarily driven by $6.2 million of recognized revenue for the three months ended March 31, 2019, offset by cash payments received or due in advance of satisfying our performance obligations. No significant changes in the timeframe of the satisfaction of contract liabilities have occurred during the three months ended March 31, 2019.

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 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 $0.6 million of amortization for the three months ended March 31, 2018. As of December 31, 2018, we had a balance of $3.0 million in deferred costs and have recognized $0.5 million for the three months ended March 31, 2019. No impairment losses have been recognized or changes made to the timeframe for performance of the obligations related to deferred contract assets during the three months ended March 31, 2018 and 2019.

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.
        

Note 4. Acquisitions & Divestitures

On July 2, 2018, the Company acquired certain assets and liabilities related to three radio stations in Princeton, NJ ("the Princeton Acquisition") from Connoisseur Media, LLC for $17.4 million, including a working capital adjustment of $0.1 million. The acquired assets included WPST-FM, WNJE-AM and WCHR-AM. The consideration was paid with cash on hand. The Company estimated the fair value of intangibles acquired (FCC licenses) to be $6.4 million using the greenfield method and the purchase price was further allocated to the assets and liabilities acquired at their fair value at the date of acquisition, with the excess of purchase price over the net assets of $9.9 million recorded as goodwill. As of May 7, 2019, the Company was still in the process of finalizing the valuation of the acquired assets and assumed liabilities, and therefore the purchase price allocation should be considered preliminary. The preliminary purchase price allocation may be subject to further refinement. The goodwill balance may be adjusted pending the completion of the valuation of the assets acquired and liabilities assumed as described above. To the extent that significant changes occur in the future, the Company will disclose such changes in the reporting period in which they occur.

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The preliminary Princeton Acquisition purchase price allocation is shown in the following table (in thousands):

Prepaid and other current assets	$	256
FCC licenses	6,409
Property and equipment, net	976
Goodwill	9,915
Accounts payable and accrued expenses	(201		)
Total purchase price	$	17,355

On March 18, 2019, the Company closed on the sale of its Arizona Bridal Shows to MarketPlace Events, LLC for $2.0 million. The Company realized a gain in connection with the sale of $1.4 million, which is included in net loss from discontinued operations, net of income taxes in the Company's Consolidated Statement of Operations for the three months ended March 31, 2019.    

Note 5. 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 2018 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 months ended March 31, 2019 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, 2019. The Consolidated Balance Sheet as of December 31, 2018 is derived from the audited financial statements at that date.     

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. 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. 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.

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 6. Investments

Long-term investments consist of minority holdings in companies that management believes are synergistic with Townsquare. As management does not exercise significant control over operating and financial policies of the investees, 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. Effective January 1, 2018, the Company adopted ASU 2016-01 which requires cost method investments to be measured at fair value, with any changes in value recognized in net income. The ASU also allows the use of a qualitative assessment when analyzing impairment of equity investments without readily determinable fair values.

During the three months ended March 31, 2019 approximately $0.3 million of a convertible note receivable previously outstanding at December 31, 2018 converted into an investment. Additionally, during the three months ended March 31, 2019, the Company made an investment in a small business totaling $2.0 million. The investments represent minority ownership

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positions that are accounted for under the cost method of accounting. These transactions were recorded as investments in the Company's Consolidated Balance Sheet as of March 31, 2019.

There were no investments made during the three months ended March 31, 2018.

Note 7. Property and Equipment

Property and equipment consisted of the following (in thousands):

	December 31, 2018			March 31, 2019
Land and improvements	$	21,062		$	21,235
Buildings and leasehold improvements	43,525			44,801
Broadcast equipment	81,690			83,188
Computer and office equipment	14,801			16,104
Furniture and fixtures	15,789			16,273
Transportation equipment	16,899			17,512
Software development costs	21,332			22,521
Total property and equipment, gross	215,098			221,634
Less accumulated depreciation and amortization	(102,721		)	(108,863		)
Total property and equipment, net	$	112,377		$	112,771

Depreciation and amortization expense for property and equipment was $4.1 million and $6.3 million for the three months ended March 31, 2018 and 2019, respectively.    

Note 8. 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.

In January 2019, management concluded that the Company should exit its music festival business and commenced an active search for a buyer.  As a result of these actions, the music festivals business met the criteria for assets held for sale which requires the Company to measure its long-lived assets at the lower of carrying value or fair value less costs to sell.  During the first quarter of 2019, management received indications of fair value.  This assessment resulted in a $10.0 million impairment charge against the assets of the disposal group which have been recorded in discontinued operations for the three months ended March 31, 2019.

There were no changes in the carrying value of goodwill for the three months ended March 31, 2018.    

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Intangible assets consist of the following (in thousands):

	Estimated Useful Life	December 31, 2018		March 31, 2019
Intangible Assets:
FCC licenses	Indefinite	$	473,412	$	473,412
Customer and advertising relationships	10 years	6,540		6,540
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	3,196		2,761
Other intangibles	3 years	161		161
Total		485,756		485,321
Less: Accumulated amortization		(6,818)		(6,945		)
Net amount		$	478,938	$	478,376

Amortization expense for definite-lived intangible assets was $0.3 million and $0.2 million for the three months ended March 31, 2018 and 2019, respectively.

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of March 31, 2019 is as follows (in thousands):

2019 (remainder)	$	673
2020	849
2021	840
2022	837
2023	626
Thereafter	1,139
	$	4,964

Note 9. Long-Term Debt

Total debt outstanding is summarized as follows (in thousands):

	December 31, 2018			March 31, 2019
2023 Notes	$	278,148		$	278,148
Term Loans	282,332			282,332
Capitalized obligations	10			9
Debt before deferred financing costs	560,490			560,489
Deferred financing costs	(5,155		)	(4,779		)
Total debt	555,335			555,710
Less: current portion of long-term debt	(5		)	(5		)
Total long-term debt	$	555,330		$	555,705

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.

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During the year ended December 31, 2018, the Company voluntarily repurchased $1.9 million of its 2023 Notes at a market price below par, including accrued interest and recognized a gain of $0.1 million. The repurchased notes were canceled by the Company. The Company recognized a loss of $0.04 million on the write-off of unamortized deferred financing costs in connection with the voluntary repurchases of its 2023 Notes.        

As of March 31, 2019, the interest rate on the Term Loans was 5.50%, based on the current LIBOR rate and an applicable margin of 300 basis points. 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 March 31, 2019, 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.

On April 30, 2019, the Company entered into an amendment under its existing credit agreement to, among other things, extend the maturity date of the existing revolving credit facility by two years to April 1, 2022, coterminous with the Term Loan maturity date (with a springing maturity six months inside of the maturity date of the Term Loan) and to amend certain asset sale provisions. The Term Loans mature on April 1, 2022. 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 (subject to certain reductions).  At December 31, 2018, we were not required to make an excess free cash flow payment on the outstanding Term Loans. 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 March 31, 2019.

As of March 31, 2019, based on available market information, the estimated fair value of the 2023 Notes and the Term Loans were $267.2 million and $277.7 million, respectively.

Annual maturities of the Company's long-term debt as of March 31, 2019 are as follows (in thousands):

2019 (remainder)	$	4
2020	5
2021	—
2022	282,332
2023	278,148
Thereafter	—
	$	560,489

Note 10. Stockholders' Equity

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The table below presents a summary, as of March 31, 2019, 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	14,313,844	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	27,939,495
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 483,355 shares of restricted Class A common stock, subject to vesting terms, but exclude 4,976,285 of Class A common stock and 4,550,991 of Class B common stock issuable upon exercise of stock options which have an exercise price between $6.25 and $9.63 per share. Additionally, the Company is authorized to issue 50,000,000 shares of undesignated preferred stock.

Holders of shares of Class A common stock, Class B common stock and Class C common stock vote together as a single class on all matters presented to the Company's stockholders for their vote or approval, except as otherwise required by applicable law. Each holder of the Company's Class A common stock is entitled to one vote per share on each matter submitted to a vote of stockholders. The Company's Class A common stock is neither convertible nor redeemable. Each holder of the Company's Class B common stock is entitled to ten votes per share on each matter submitted to a vote of stockholders. The Company's Class B common stock is not redeemable, but is convertible 1:1 (including automatically upon certain transfers) into Class A common stock. Holders of shares of Class C common stock are not entitled to any voting rights with respect to such shares. The Company’s Class C common stock is not redeemable, but is convertible 1:1 (including automatically upon certain transfers) into Class A common stock.    

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 March 31, 2019, 1,946,291 shares were available for grant.

During the three months ended March 31, 2019, the Company issued 16,778 shares of restricted Class A common stock, none of which were vested as of March 31, 2019. The fair value of the restricted grants was $5.96 share.

The following table summarizes stock option activity for the three months ended March 31, 2019:

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	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at January 1, 2019	9,688,424		$	8.23	6.15	$	—
Granted	—
Exercised	—
Forfeited	(161,148	)
Outstanding at March 31, 2019	9,527,276		$	8.26	5.85	$	—

As of March 31, 2019, there were 483,355 shares of restricted Class A common stock outstanding with a weighted average grant date fair value per share of $6.56. The fair value of the restricted stock is equal to the closing share price on the date prior to the grant. The vesting term of the shares of restricted stock vary from 1 to 5 years.

Stock-based compensation expense was $0.2 million and $0.9 million for the three months ended March 31, 2018 and 2019, respectively. As of March 31, 2019, total unrecognized stock-based compensation expense related to our stock options and restricted stock was $3.8 million and $2.4 million, respectively, and is expected to be recognized over a weighted average period of 2.8 and 3.0 years, respectively.    

Note 11. Income Taxes

The Company's effective tax rate for the three months ended March 31, 2018 and 2019 was approximately 27.7% and 27.7%, 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 three months ended March 31, 2019 primarily relates to certain non-deductible items under the TCJA provisions and state, local and foreign income taxes.

Note 12. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

	December 31, 2018		March 31, 2019
Accrued compensation and benefits	$	14,863	$	4,958
Accrued professional fees	1,449		809
Accrued commissions	1,980		2,007
Accrued taxes	2,686		2,004
Accrued music and FCC licensing	2,315		1,218
Accrued publisher fees	2,213		1,615
Accrued national representation fees	1,276		1,480
Due to sellers, business combinations	26		3
Deferred rent	2,139		—
Dividends payable	2,162		2,198
Accrued other	1,640		1,486
	$	32,749	$	17,778

Note 13. Leases and Other Commitments

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.     

In September 2015, the Company closed on the sale of 43 towers located on 41 sites in 28 markets to a subsidiary of Vertical Bridge, LLC ("Vertical Bridge") (the "Tower Sale"). The divested towers house antenna that broadcast certain of the Company’s radio stations. As part of this transaction, the Company leased a portion of the space on the sold towers that house

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certain of the Company's antenna. The lease is for a period of 35 years, including an initial term of twenty years and three optional 5-year renewal periods. The Company will pay $41 of rent per annum ($1 per site per annum) to Vertical Bridge for the right to house its existing antenna on the divested towers. In addition, the Company determined that the lease is an operating lease and is amortizing the long-term prepaid rent asset and deferred gain on the sale of towers as offsetting amounts over the lease term. The ending balances of the long-term prepaid rent asset and deferred gain as of December 31, 2018 of $6.6 million were included in the opening balance of the operating lease ROU assets and operating lease liabilities at January 1, 2019. The Company will continue to amortize these balances over the remaining lease-term.

The below table summarizes the impact on the Company's Consolidated Balance Sheet at the adoption date of January 1, 2019 and as of March 31, 2019, respectively (dollars in thousands):

	At Adoption January 1, 2019			March 31, 2019
Operating lease right-of-use-assets	$	45,434		$	45,724
Total operating lease right-of-use-assets	$	45,434		$	45,724
Deferred rent	(2,111		)	—
Operating lease liabilities	48,361			48,765
Retained deficit	(816		)	—
Total liabilities and stockholders' equity	$	45,434		$	48,765
Weighted Average Remaining Lease Term
Operating leases	6.36 years			6.26 years
Weighted Average Discount Rate
Operating leases	7.04		%	7.05		%

Maturities of lease liabilities for operating leases are as follows as of March 31, 2019 (in thousands):

2019 (remainder)	$	8,700
2020	9,610
2021	7,765
2022	6,881
2023	5,635
Thereafter	14,453
Total lease payments	53,044
Less: imputed interest	(10,842		)
Add: deferred gain sale leaseback transaction	6,563
Total	$	48,765

The components of lease expense recorded to operating and corporate expense for the three months ended March 31, 2019 are as follows (dollars in thousands):

Operating lease cost	$	2,950
Short-term lease cost	15
Variable lease cost	9
Total lease cost	$	2,974

Supplemental cash flow information related to leases for the three months ended March 31, 2019 are as follows (dollars in thousands):

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Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,874
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,287

As of March 31, 2019, we have additional operating leases, primarily for office space that have not yet commenced totaling $2.1 million. These operating leases will commence in 2019 with lease terms of 20 years.

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 March 31, 2019 is approximately $15.6 million and is expected to be paid in accordance with the agreements through September 2021. In addition, the Company has aggregate commitments of $1.1 million for other broadcasting services through December 2019 and aggregate commitments of $10.0 million for a business management platform through 2023.

Note 14. Segment Reporting

Operating segments are organized internally by type of products and services provided.  On January 2, 2019, the Company announced that its former Co-Chief Executive Officer (“CEO”) Dhruv Prasad resigned and that its other Co-CEO Bill Wilson would become the Company’s sole CEO.  As a result of these organization changes, Bill Wilson also became the Company’s Chief Operating Decision Maker (“CODM”).  Based on the information reviewed by Mr. Wilson in his capacity as CODM, the Company has identified three reportable operating segments, which are Advertising, which includes broadcast and digital advertising products and solutions, Townsquare Interactive, which is our digital marketing solutions business and Live Events, which is comprised of the Company’s live events, including concerts, expositions and other experiential events.  The Company has concluded that each of these operating segments shall be presented separately. Prior year segment reporting has been restated to conform with the current year presentation.  

The following table presents the Company's reportable segment results for the three months ended March 31, 2018 (in thousands):    

	Advertising		Townsquare Interactive		Live Events		Corporate and Other Reconciling Items			Total
Net revenue	$	71,541	$	10,796	$	5,646	$	—		$	87,983
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	52,650		7,545		4,161		—			64,356
Depreciation and amortization	2,670		115		136		1,462			4,383
Corporate expenses	—		—		—		5,649			5,649
Stock-based compensation	18		7		11		154			190
Transaction costs	—		—		—		159			159
Business realignment costs	—		—		—		—			—
Net gain on sale and retirement of assets	—		—		—		(10		)	(10		)
Operating income (loss)	$	16,203	$	3,129	$	1,338	$	(7,414	)	$	13,256
Capital expenditures	$	2,863	$	8	$	2	$	1,547		$	4,420

The following table presents the Company's reportable segment results for the three months ended March 31, 2019 (in thousands):

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	Advertising		Townsquare Interactive		Live Events		Corporate and Other Reconciling Items			Total
Net revenue	$	74,315	$	14,208	$	5,159	$	—		$	93,682
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	54,889		9,827		3,913		—			68,629
Depreciation and amortization	3,098		121		145		3,144			6,508
Corporate expenses	—		—		—		5,587			5,587
Stock-based compensation	92		35		23		726			876
Transaction costs	—		—		—		148			148
Business realignment costs	—		—		—		4			4
Net loss on sale and retirement of assets	—		—		—		19			19
Operating income (loss)	$	16,236	$	4,225	$	1,078	$	(9,628	)	$	11,911
Capital expenditures	$	3,378	$	73	$	1	$	1,581		$	5,033

Note 15. Discontinued Operations

During the fourth quarter of 2017, we undertook a corporate strategic review of the Company’s operations and concluded the Company should exit certain entertainment businesses and that two live event verticals, Premium Music and Holiday, would be discontinued. The assets, liabilities and results of operations of these businesses were reclassified as 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 North American Midway Entertainment ("NAME") to North American Fairs, LLC for $23.5 million. We recognized a loss on the sale of NAME of approximately $1.8 million within net loss from discontinued operations during the year ended December 31, 2018. In addition, on June 29, 2018, the Company entered into an Agreement of Purchase and Sale to transfer its 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. The purchase and sale was completed on the same day and 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 during the year ended December 31, 2018.

During the first quarter of 2019, management concluded that the Company should exit its music festival business and it would therefore be discontinued. The Company commenced a search for a buyer of the music festivals. The assets, liabilities and results of operations of this business has been reclassified as discontinued operations and assets held for sale.

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):    

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	December 31, 2018		March 31, 2019
Accounts receivable	$	9	$	4
Prepaid expenses and other current assets	435		1,085
Property and equipment, net	1,874		1,759
Intangible assets, net	3,843		3,751
Goodwill	13,602		3,586
Current assets held for sale	19,763		10,185
Accounts payable	89		58
Deferred revenue	6,688		10,233
Accrued expenses and other current liabilities	154		84
Current liabilities held for sale	6,931		10,375
Accrued expenses and other current liabilities	207		203
Current liabilities of discontinued operations	207		203
Net assets	$	12,625	$	(393	)

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

	Three Months Ended   March 31,
	2018			2019
Net revenue	$	6,243		$	8
Discontinued operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	12,710			903
Depreciation and amortization	1,957			208
Stock-based compensation	7			—
Impairment on long-lived assets	37,973			10,016
Net gain on sale and retirement of assets	(312		)	(1,438		)
Discontinued operating loss	(46,092		)	(9,681		)
Other expenses:
Interest expense, net	1			—
Other income, net	(12		)	—
Loss from discontinued operations before income taxes	(46,103		)	(9,681		)
Benefit for income taxes	(16,047		)	(2,517		)
Net loss from discontinued operations, net of income taxes	$	(30,056	)	$	(7,164	)

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Note 16. Net (Loss) Income Per Common Share

The following table sets forth the computations of basic and diluted net (loss) income per share for the three months ended March 31, 2018 and 2019 (in thousands, except per share data).

	Three Months Ended   March 31,
	2018			2019
Numerator:
Net income from continuing operations	$	3,467		$	2,374
Net loss from discontinued operations, net of income taxes	(30,056		)	(7,164		)
Net loss	$	(26,589	)	$	(4,790	)
Denominator:
Weighted average shares of common stock outstanding	18,478			18,478
Effect of dilutive common stock equivalents	8,978			8,978
Weighted average diluted common shares outstanding	27,456			27,456
Basic income (loss) per share:
Continuing operations	$	0.19		$	0.13
Discontinued operations	(1.63		)	(0.39		)
Diluted income (loss) per share:
Continuing operations	$	0.13		$	0.09
Discontinued operations	(1.09		)	(0.26		)

Note 17. Subsequent Events

Dividend

On May 6, 2019 the board of directors approved a dividend of $0.075 per share. The dividend will be paid to holders of record as of June 28, 2019. The estimated $2.1 million dividend will be paid on August 15, 2019.

Amendment to Revolving Credit Facility

On April 30, 2019, the Company entered into an amendment under its existing credit agreement to, among other things, extend the maturity date of the existing revolving credit facility by two years to April 1, 2022, coterminous with the Term Loan maturity date (with a springing maturity six months inside of the maturity date of the Term Loan) and to amend certain asset sale provisions.

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

The following management’s discussion and analysis (“MD&A”) 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. 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.

On July 2, 2018, the Company acquired certain assets and liabilities related to three radio stations in Princeton, NJ (“the Princeton Acquisition”) from Connoisseur Media, LLC. We use the term “pro forma” in this section to refer to results that include the Princeton Acquisition as if it had been completed on January 1, 2018.

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 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 2018 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

During the fourth quarter of 2017, we undertook a corporate strategic review of the Company’s operations and concluded the Company should exit certain entertainment businesses and that two live event verticals, Premium Music and Holiday, would be discontinued. The assets, liabilities and results of operations of these businesses were reclassified as discontinued operations. Refer to Note 15 in the accompanying Consolidated Financial Statements for additional information.

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 North American Midway Entertainment ("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 its 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 15 in the accompanying Consolidated Financial Statements for additional information.

During the first quarter of 2019, management concluded that the Company should exit its music festival business and it would therefore be discontinued. The Company commenced a search for a buyer of the music festivals. The assets, liabilities

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and results of operations of this business has been reclassified as discontinued operations and assets held for sale. Refer to Note 15 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, digital, mobile, video and social media properties, and live events. 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 321 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 concerts, expositions and other experiential events within and beyond our radio markets.

Our discussion is presented on both a consolidated and segment basis. The Company has identified three operating segments, which are Advertising, which includes broadcast and digital advertising products and solutions, Townsquare Interactive our digital marketing solutions business and Live Events, which principally is comprised of the Company's live events, including concerts, expositions and other experiential events.

Advertising

Our primary source of Advertising net revenue is 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.

Townsquare Interactive

Through our Townsquare Interactive segment, we 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, include traditional and mobile-enabled website development and hosting services, e-commerce platforms, search engine and online directory optimization services, online reputation management, social media management, and website retargeting.

Live Events

Our primary source of Live Events net revenue is ticket sales. Our Live Events segment also generates 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.

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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 and mobile applications, 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. 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. 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 April 26, 2019, U.S. GDP grew at an annual rate of 3.2% in the first quarter of 2019.

Emerging Growth Company

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. Based on the applicable regulations, we will no longer qualify as an emerging growth company no later than as of December 31, 2019. We are also a “smaller reporting company,” which allows us to take advantage of many of the same exemptions from disclosure requirements, including reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements. We may continue as a smaller reporting company for an indefinite period.

Executive Summary

The key developments in our business for the three months ended March 31, 2019, as compared to the same period in 2018 are summarized below:

• Net revenue for the three months ended March 31, 2019 increased $5.7 million, or 6.5%.

◦ Excluding political revenue, net revenue for the three months ended March 31, 2019 increased $6.1 million, or 7.0%.

◦ Advertising net revenue for the three months ended March 31, 2019 increased $2.8 million, or 3.9%.

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◦ Townsquare Interactive net revenue for the three months ended March 31, 2019 increased $3.4 million, or 31.6%.

◦ Live Events net revenue for the three months ended March 31, 2019 decreased $0.5 million, or 8.6%.

• Pro forma net revenue for the three months ended March 31, 2019 increased $4.2 million, or 4.7%.

◦ Excluding political revenue, pro forma net revenue for the three months ended March 31, 2019 increased $4.6 million, or 5.1%.

◦ Pro forma Advertising net revenue for the three months ended March 31, 2019 increased $1.3 million, or 1.7%.

◦ Pro forma Townsquare Interactive net revenue for the three months ended March 31, 2019 increased $3.4 million, or 31.6%.

◦ Pro forma Live Events net revenue for the three months ended March 31, 2019 decreased $0.5 million, or 9.2%.

Consolidated Results of Operations

Three Months Ended March 31, 2018 compared to Three Months Ended March 31, 2019

The following table summarizes our historical consolidated results of operations (in thousands):

	Three Months Ended   March 31,
	2018			2019			$ Change			% Change
Advertising net revenue	$	71,541		$	74,315		$	2,774		3.9	%
Townsquare Interactive net revenue	10,796			14,208			3,412			31.6	%
Live Events net revenue	5,646			5,159			(487		)	(8.6	)%
Net revenue	87,983			93,682			5,699			6.5	%
Operating costs and expenses:
Advertising operating expenses	52,650			54,889			2,239			4.3	%
Townsquare Interactive operating expenses	7,545			9,827			2,282			30.2	%
Live Events operating expenses	4,161			3,913			(248		)	(6.0	)%
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	64,356			68,629			4,273			6.6	%
Depreciation and amortization	4,383			6,508			2,125			48.5	%
Corporate expenses	5,649			5,587			(62		)	(1.1	)%
Stock-based compensation	190			876			686			361.1	%
Transaction costs	159			148			(11		)	(6.9	)%
Business realignment costs	—			4			4			**
Net (gain) loss on sale and retirement of assets	(10		)	19			29			**
Total operating costs and expenses	74,727			81,771			7,044			9.4	%
Operating income	13,256			11,911			(1,345		)	(10.1	)%
Other expense:
Interest expense, net	8,427			8,595			168			2.0	%
Other expense, net	32			34			2			6.3	%
Income from continuing operations before income taxes	4,797			3,282			(1,515		)	(31.6	)%
Provision for income taxes	1,330			908			(422		)	(31.7	)%
Net income from continuing operations	3,467			2,374			(1,093		)	(31.5	)%
Net loss from discontinued operations, net of income taxes	(30,056		)	(7,164		)	22,892			(76.2	)%
Net loss	$	(26,589	)	$	(4,790	)	$	21,799		(82.0	)%

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Net Revenue

Net revenue for the three months ended March 31, 2019 increased $5.7 million, or 6.5%, as compared to the same period in 2018.

Advertising net revenue for the three months ended March 31, 2019 increased $2.8 million, or 3.9%, as compared to the same period in 2018. The increase was primarily driven by revenue gains in our digital programmatic business as a result of a larger customer base.

Townsquare Interactive net revenue for the three months ended March 31, 2019 increased $3.4 million, or 31.6%, as compared to the same period in 2018. The increase was due to a larger subscriber base.

Live Events net revenue for the three months ended March 31, 2019 decreased $0.5 million, or 8.6%, as compared to the same period in 2018. The decrease was primarily driven by the elimination of certain events.

Direct Operating Expenses

Direct operating expenses for the three months ended March 31, 2019 increased by $4.3 million, or 6.6%, as compared to the same period in 2018.

Advertising operating expenses for the three months ended March 31, 2019 increased $2.2 million, or 4.3%, as compared to the same period in 2018. The increase was primarily driven by increases in headcount related expenses to support the growth of our digital programmatic business.

Townsquare Interactive operating expenses for the three months ended March 31, 2019 increased $2.3 million, or 30.2%, as compared to the same period in 2018. The increase was primarily driven by increases in headcount related expenses to support the revenue growth.

Live Events operating expenses for the three months ended March 31, 2019 decreased $0.2 million, or 6.0%, as compared to the same period in 2018. The decrease was primarily driven by the elimination of certain events.

Depreciation and Amortization

Depreciation and amortization expense for the three months ended March 31, 2019 increased $2.1 million, or 48.5%, as compared to the same period in 2018, primarily related to amortization of capitalized software development costs.

Corporate Expenses

Corporate expense for the three months ended March 31, 2019 remained relatively unchanged as compared to the same period in 2018.

Stock-based Compensation

Stock-based compensation expense increased $0.7 million, or 361.1%, as compared to the same period in 2018, primarily due to new options and restricted stock grants in 2018.

Transaction Costs

Transaction costs for the three months ended March 31, 2019 remained relatively unchanged as compared to the same period in 2018.

Net (Gain) Loss on Sale and Retirement of Assets

Net (gain) loss on sale of assets for the three months ended March 31, 2019 remained relatively unchanged as compared to the same period in 2018.

Other Expense

Interest expense, net is the major recurring component of other expense. Interest expense, net increased $0.2 million, or 2.0%, in the three months ended March 31, 2019, as compared to the same period in 2018, primarily due to an increase in LIBOR rates, partially offset by a lower term loan balance.

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

	Three Months Ended   March 31,
	2018		2019
2023 Notes	$	4,551	$	4,519
Term Loans	3,401		3,975
Capital loans and other	2		2
Loan origination costs	479		376
Interest income	(6)		(277)
Interest expense, net	$	8,427	$	8,595

Provision for income taxes

We recognized a provision for income taxes of $0.9 million for the three months ended March 31, 2019. Our effective tax rate for the period was approximately 27.7% 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 March 31, 2019 primarily relates to certain non-deductible items under the TCJA provisions and state, local and foreign income taxes.

Supplemental Pro Forma Net Revenue

For comparative purposes and to enable the reader to adequately compare prior year with current year results, the following discussion and tables present net revenue for Townsquare pro forma for the Princeton Acquisition disclosed in more detail in our Consolidated Financial Statements contained elsewhere in this quarterly report. The following tables present our historical results, which include the results of the Princeton Acquisition for the period after acquisition, and add the results of the Princeton Acquisition for the periods prior to acquisition as if they had been a part of Townsquare from the first day of the period (in thousands).

	Three Months Ended  March 31, 2018						Three Months Ended  March 31, 2019
	Townsquare		Princeton Acquisition		Townsquare Pro Forma for the Princeton Acquisition		Townsquare		Princeton Acquisition		Townsquare Pro Forma for the Princeton Acquisition		$ Change			% Change
Advertising net revenue	$	71,541	$	1,497	$	73,038	$	74,315	$	—	$	74,315	$	1,277		1.7	%
Townsquare Interactive net revenue	10,796		—		10,796		14,208		—		14,208		3,412			31.6	%
Live Events net revenue	5,646		35		5,681		5,159		—		5,159		(522		)	(9.2	)%
Net Revenue	$	87,983	$	1,532	$	89,515	$	93,682	$	—	$	93,682	$	4,167		4.7	%

On a pro forma basis, net revenue for the three months ended March 31, 2019 increased by $4.2 million, or 4.7%, as compared to the same period in 2018.

On a pro forma basis, Advertising net revenue for the three months ended March 31, 2019 increased $1.3 million, or 1.7%, as compared to the same period in 2018. The increase was primarily driven by revenue gains in our digital programmatic business as a result of a larger customer base.

On a pro forma basis, Townsquare Interactive net revenue for the three months ended March 31, 2019 increased $3.4 million, or 31.6% , as compared to the same period in 2018. The increase was primarily due to a larger subscriber base.

On a pro forma basis, Live Events net revenue for the three months ended March 31, 2019 decreased $0.5 million, or 9.2%, as compared to the same period in 2018. The decrease was primarily driven by the elimination of certain events.

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Liquidity and Capital Resources

The following table summarizes our change in cash and cash equivalents (in thousands):

	Three Months Ended   March 31,
	2018			2019
Cash (used in) provided by operating activities	$	(580	)	$	5,942
Cash used in investing activities	(5,438		)	(3,183		)
Cash used in financing activities	(9,547		)	(3,347		)
Net effect of foreign currency exchange rate changes	3			—
Net decrease in cash and cash equivalents	$	(15,562	)	$	(588	)

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, 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 March 31, 2019, we had $555.7 million of outstanding indebtedness, net of deferred financing costs of $4.8 million. Based on interest rates in effect as of March 31, 2019, we expect our debt service requirements to be approximately $33.9 million over the next twelve months. In addition, as of March 31, 2019 we had $60.8 million of cash and cash equivalents, $56.2 million of receivables from customers, which historically have had an average collection cycle of approximately 54 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, 2018 and March 31, 2019, 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 $6.5 million from $0.6 million of cash used in operating activities for the three months ended March 31, 2018 to $5.9 million of cash provided by operating activities for the three months ended March 31, 2019. The increase was primarily due to an increase in cash provided by operating activities - discontinued operations due to the timing of the sale of NAME.

Cash Flows from Investing Activities

Net cash used in investing activities decreased $2.3 million to $3.2 million for the three months ended March 31, 2019 from $5.4 million for the same period in 2018, primarily due to proceeds received in the first quarter of 2019 relating to the sale of our Arizona bridal shows.

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Cash Flows from Financing Activities

Net cash used in financing activities decreased $6.2 million to $3.3 million for the three months ended March 31, 2019, as compared to $9.5 million for the same period in 2018. The decrease was due to the required excess free cash flow payment on our outstanding Term Loan and dividend payments. In the first quarter of 2018, our required payment was $9.5 million. In the first quarter of 2019, we did not have a required payment. Similarly in the first quarter of 2019, we paid $2.1 million in dividends, whereas in the first quarter of 2018, we did not have a dividend payment.

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.

As of March 31, 2019, the interest rate on the Term Loans was 5.50%, based on the current LIBOR rate and an applicable margin of 300 basis points. 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 March 31, 2019, the Company had no outstanding borrowings under the Revolver.

On March 20, 2018, the Company made an excess cash flow payment on the outstanding Term Loans of $9.5 million and recognized an expense of $0.1 million on the accelerated depreciation of unamortized deferred financing costs in the first quarter of 2018.

On December 3, 2018, the Company voluntarily repurchased and canceled $1.9 million of our 2023 Notes outstanding at a market price below par, including accrued interest.

As of March 31, 2019, the Company had $282.3 million of Term Loan borrowings, and no outstanding borrowings under the Revolver. As of March 31, 2019, 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.

On April 30, 2019, the Company entered into an amendment under its existing credit agreement to, among other things, extend the maturity date of the existing revolving credit facility by two years to April 1, 2022, coterminous with the Term Loan maturity date (with a springing maturity six months inside of the maturity date of the Term Loan) and to amend certain asset sale provisions.

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 2018 Annual Report on Form 10-K reflects our more significant judgments and estimates used in the preparation of the consolidated financial statements. Except as stated below, there have been no material changes to the critical accounting policies and estimates as filed in such report.

Change in Accounting Policy

Segment Reporting

Operating segments are organized internally by type of products and services provided.  On January 2, 2019, we announced that our former Co-Chief Executive Officer (“CEO”) Dhruv Prasad resigned and our other Co-CEO Bill Wilson would become our sole CEO.  As a result of these organization changes, Bill Wilson also became our Chief Operating Decision Maker (“CODM”).  Based on the information reviewed by Mr. Wilson in his capacity as CODM, we have identified three reportable operating segments, which are Advertising, which includes broadcast and digital advertising products and solutions, Townsquare Interactive, which is our digital marketing solutions business and Live Events, which is comprised of our live events, including concerts, expositions and other experiential events.  We have concluded that each of these operating segments shall be presented separately. Prior year segment reporting has been restated to conform with the current year presentation.  

28

Leases

In February 2016, the FASB issued 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 ("ROU") 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 ASC Topic 840. The standard is effective for fiscal years beginning after December 15, 2018, and allows a number of practical expedients that the Company has elected to apply. The guidance ASU 2018-11, Leases (Topic 842): Targeted Improvements, which amends ASC 842 provides entities with an optional transition method for adopting the new lease standard by allowing entities to apply the new guidance at the adoption date by recognizing a cumulative-effect adjustment to the opening balance of retained earnings and not to restate comparative periods presented. We adopted the standard using the optional transition method as of January 1, 2019, using the package of practical expedients as well as several other permitted practical expedients that allow for a more simplified transition. Accordingly, we accounted for its existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. As a result of the adoption of the new lease accounting guidance, we recognized at adoption (a) a lease liability of approximately $48.4 million, which represents the present value of the remaining lease payments, discounted at a weighted average discount rate of 7.04%, and (b) a ROU asset of approximately $45.4 million which represents the lease liability of $48.4 million adjusted for accrued rent of approximately $2.9 million. We recorded an adjustment of $0.8 million the adoption date of January 1, 2019 to stockholders equity to properly account for the Company's operating lease ROU assets and operating lease liabilities. The most significant impact of this standard was the recognition of ROU assets and lease obligations for operating leases.

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 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 Chief Executive Officer and our Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2019, the end of the period covered by this Quarterly Report on Form 10-Q. Based upon such evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of such date.

Changes in Internal Controls

There was no change in Townsquare’s internal control over financial reporting that occurred during the three months ended March 31, 2019 that has materially affected, or is reasonably likely to materially affect Townsquare’s internal control over financial reporting.

29

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

There is no current material pending litigation to which we are a party and no material legal proceedings were terminated, settled or otherwise resolved during the three months ended March 31, 2019. 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 2018 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.

30

EXHIBIT INDEX

Exhibit	Description
10.1	Amendment No. 4, dated April 30, 2019, to the Credit Agreement, dated as of April 1, 2015 (as amended by the Incremental Amendment Agreement No. 1 dated as of September 1, 2015, Amendment No. 2 dated as of February 8, 2017 and Amendment No. 3 dated as of October 20, 2017), among Townsquare Media, Inc., each lender from time to time party thereto, Royal Bank of Canada, as administrative agent and collateral agent
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
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
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

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: May 7, 2019

31

EX-10.1

AMENDMENT NO. 4

AMENDMENT NO. 4, dated as of April 30, 2019 (this “Amendment”), to the Credit Agreement, dated as of April 1, 2015 (as amended by the Incremental Amendment Agreement No. 1 dated as of September 1, 2015, Amendment No. 2 dated as of February 8, 2017, Amendment No. 3 dated as of October 20, 2017 and as further amended, supplemented, amended and restated or otherwise modified from time to time) (the “Credit Agreement”), among TOWNSQUARE MEDIA, INC., a Delaware corporation (the “Borrower”), each lender from time to time party thereto (collectively, the “Lenders” and individually, a “Lender”), ROYAL BANK OF CANADA, as administrative agent and collateral agent (in such capacity, the “Administrative Agent”), and the other parties thereto. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.

RECITALS

WHEREAS, the Borrower has requested that all of the Revolving Credit Commitments under the Credit Agreement immediately prior to giving effect to this Amendment (the “Existing Revolving Credit Commitments”) be amended to extend the Revolving Credit Maturity Date with respect to all of such Existing Revolving Credit Commitments (any such Existing Revolving Credit Commitments which have been so amended, the “Amendment No 4. Extended Revolving Credit Commitments”) as provided in Section 2 hereof and pursuant to Section 2.21 of the Credit Agreement (the “Extension”);

WHEREAS Section 2.21 of the Credit Agreement permits the Extension with the consent of the Administrative Agent, the Borrower and each Revolving Credit Lender (each, an “Amendment No. 4 Extending Revolving Credit Lender”) wishing to have all of its Existing Revolving Credit Commitments amended into Amendment No. 4 Extended Revolving Credit Commitments;

WHEREAS, the Borrower has requested the amendment of certain other provisions of the Credit Agreement as set forth herein;

WHEREAS, Section 11.1 of the Credit Agreement permits the amendments of the Credit Agreement as set forth in Section 1 hereof with consent of the Administrative Agent, the Borrower and the Required Lenders;

WHEREAS, (i) the Administrative Agent, the Borrower and the Amendment No. 4 Extending Revolving Credit Lenders consent to the Extension and (ii) the Borrower and the Required Lenders consent to the additional amendments set forth in Section 1 hereof, in each case, on the terms and subject to the conditions set forth herein;

NOW, THEREFORE, in consideration of the premises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

Section 1.Amendments.

Effective as of the Amendment No. 4 Effective Date, the Credit Agreement is hereby amended as follows:

(a)The following defined terms shall be added to Section 1.01 of the Credit Agreement in alphabetical order:

“Amendment No. 3” means Amendment No. 3 to the Credit Agreement dated as of October 20, 2017.

“Amendment No. 4” means Amendment No. 4 to the Credit Agreement dated as of April 30, 2019.

“Amendment No. 4 Effective Date” has the meaning assigned to such term in Amendment No. 4.

“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

(b)The definition of “Benefit Plan” in Section 1.1 of the Credit Agreement and each reference thereto in the Credit Agreement is hereby replaced with a reference to “Employee Benefit Plan.”

(c)The definition of “Loan Documents” in Section 1.1 of the Credit Agreement is hereby amended by deleting such definition and replacing it with the following:

““Loan Documents” means, collectively, this Agreement, any Notes, the Guaranty and Security Agreement, the Mortgages, the Fee Letter, the L/C Reimbursement Agreements, each Perfection Certificate, the Incremental Amendment Agreement, Amendment No. 2, each Amendment No. 2 Joinder, Amendment No. 3, Amendment No. 4 and, when executed, each document executed by a Loan Party and delivered to the Administrative Agent, any Lender or any L/C Issuer in connection with or pursuant to any of the foregoing or the Obligations, together with any modification of any term, or any waiver with respect to, any of the foregoing, excluding in any event Secured Hedging Agreements and Secured Cash Management Agreements.”

(d)Section 1.5 of the Credit Agreement is hereby amended by adding the following as clause (d):

“Any reference herein to a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, shall be deemed to apply to a division of or by a limited liability company, or an allocation of assets to a series of a limited liability company (or the unwinding of such a division or allocation), as if it were a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, as applicable, to, of or with a separate Person. Any division of a limited liability company shall constitute a separate Person hereunder (and each division of any limited liability company that is a Subsidiary, joint venture or any other like term shall also constitute such a Person or entity).”

(e)Clause (i) in Section 2.8(c) of the Credit Agreement is hereby amended by deleting such clause and replacing it with the following:

“any Sale by any Group Member of any of its property pursuant to clause (r), (u), (ee) or (ff) (in the case of clause (ff), with respect to any cash or Cash Equivalents received in excess of the value of any cash or Cash Equivalents sold or exchanged in connection with such Permitted Asset Swap) of Section 8.4”

(f)Section 8.4(ee) of the Credit Agreement is hereby amended by deleting such section and replacing it with the following:

“(ee)    as long as no Default or Event of Default is continuing or would result therefrom, any Sale of property by any Loan Party so long as (i) the Borrower or Restricted Subsidiary, as the case may be, receives consideration (including by way of relief from, or by any other Person assuming responsibility for, any liabilities, contingent or otherwise) at least equal to the fair market value (such fair market value to be determined on the date of contractually agreeing to such Sale), as determined in good faith by the Board of Directors of the applicable Loan Party, of the shares and assets subject to such Sale, (ii) in any such Sale, or series of related Sales, at least 75% of the consideration from such Sale (including by way of relief from, or by any other Person assuming responsibility for, any liabilities, contingent or otherwise) received by the Borrower or such Restricted Subsidiary, as the case may be, is in the form of cash or Cash Equivalents or Designated Non-Cash Considerations to the extent that all Designated Non-Cash Considerations at such time does not exceed the greater of (x) $20,000,000 and (y) 2.25% of Total Assets (with the fair market value of each item of Designated Non-Cash Consideration being measured at the time received and without giving effect to subsequent changes in value) and (iii) the Net Cash Proceeds are applied as set forth in Section 2.8 as and when required thereby; and”

(g)Section 8.4(ff) of the Credit Agreement is hereby amended by deleting such section and replacing it with the following:

“(ff)    so long as no Default or Event of Default is continuing or would result therefrom, any Permitted Asset Swap by any Loan Party so long as the Borrower or Subsidiary, as the case may be, receives consideration (including by way of relief from, or by any other Person assuming responsibility for, any liabilities, contingent or otherwise) at least equal to the fair market value (such fair market value to be determined on the date of contractually agreeing to such Permitted Asset Swap), as determined in good faith by the Board of Directors of the applicable Loan Party, of the shares and assets subject to such Permitted Asset Swap.”

(h)Section 8.4 of the Credit Agreement is hereby amended by deleting clause (gg) thereof.

(i)Article 10 of the Credit Agreement is hereby amended by adding the following as Section 10.12:

“(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true:

(i) such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments or this Agreement,

(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement,

(iii) (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or

(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

(b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).”

Section 2.Extension of the Revolving Credit Facility Maturity Date. Effective as of the Amendment No. 4 Effective Date, the definition of “Revolving Credit Facility Maturity Date” in Section 1.1 of the Credit Agreement is hereby amended by deleting such definition and replacing it with the following:

““Revolving Credit Facility Maturity Date” means the seventh (7th) anniversary of the Closing Date; provided that if the Term Loan Maturity Date has not been extended to a date that is at least six (6) months following the Term Loan Maturity Date (prior to giving effect to this Amendment), the Revolving Credit Facility Maturity Date shall be the date that is six (6) months prior to the Term Loan Maturity Date.”

Section 3.Representations and Warranties. By its execution of this Amendment, each Loan Party party hereto represents and warrants to the Administrative Agent as of the Amendment No. 4 Effective Date (before and after giving effect to this Amendment) that:

(a)from and after its delivery to the Administrative Agent, this Amendment has been duly authorized, executed and delivered by it and constitutes a legal, valid and binding obligation of such Loan Party, enforceable against it in accordance with its terms except as may be limited by bankruptcy, insolvency, reorganization moratorium or similar laws limiting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law;

(b)the execution, delivery and performance by such Loan Party of the Amendment is within such Loan Party’s corporate or similar powers, have been, at the time of execution thereof, duly authorized by all necessary corporate or similar action and do not (a) contravene the terms of any of such Person’s Constituent Documents, or (b) violate any applicable Requirement of Law, except to the extent that such violation or contravention could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

(c)all representations and warranties set forth in any Loan Document are true and correct, both before and after giving effect to this Amendment, in all material respects (but in all respects if such representation or warranty is qualified by “material” or “Material Adverse Effect”) on and as of the Amendment No. 4 Effective Date or, to the extent such representations and warranties expressly relate to an earlier date, on and as of such earlier date and except that the representations and warranties contained in Section 4.4(a) of the Credit Agreement shall be deemed to refer to the most recent financial statements furnished pursuant to Section 6.1(c) of the Credit Agreement, respectively, prior to the Amendment No. 4 Effective Date;

(d)(i) no Default or Event of Default has occurred and is continuing and (ii) no Event of Default occurred and was continuing at the time a draft of this Amendment was first delivered to each Lender of the Existing Revolving Credit Commitments; and

(e)the information included in the Beneficial Ownership Certification, if applicable, is true and correct in all respects.

Section 4.Conditions to Effectiveness.

This Amendment shall become effective on the date (the “Amendment No. 4 Effective Date”) on which each of the following conditions is satisfied:

(a)The Administrative Agent’s receipt of executed counterparts of this Amendment from the Borrower, the Guarantors, the Required Lenders (solely with respect to the amendments set forth in Section 1 hereof) and (solely with respect to the Extension) the Amendment No. 4 Extending Revolving Credit Lenders, the Swingline Lender and the L/C Issuer, which shall be originals or facsimiles or electronic copies.

(b)The Administrative Agent’s receipt of the following, each of which shall be originals or facsimiles or electronic copies (followed promptly by originals) unless otherwise specified;

(1)an opinion of Kirkland & Ellis LLP, counsel for the Borrower (addressed to the Administrative Agent and the Lenders and dated the Amendment No. 4 Effective Date);

(2)either (x) a copy of each Constituent Document of each Loan Party that is on file with any Governmental Authority in any jurisdiction, certified as of a recent date by such Governmental Authority, or (y) confirmation from each Loan Party that there has been no change to such Constituent Document since last delivered to the Administrative Agent or certified as unchanged since last delivered to the Administrative Agent, together with, if applicable, certificates attesting to the good standing (to the extent available in such jurisdiction) of each Loan Party in such jurisdiction, other than for those Guarantors where the failure to be in good standing could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

(3)a certificate of the secretary or other officer of each Loan Party in charge of maintaining books and records of such Loan Party certifying as to (A) the names and signatures of each officer of such Loan Party authorized to execute and deliver this Amendment, (B) either (x) the Constituent Documents of such Loan Party attached to such certificate are complete and correct copies of such Constituent Documents as in effect on the date of such certification or (y) that there has been no change to such Constituent Document since last delivered to the Administrative Agent or certified as unchanged since last delivered to the Administrative Agent and (C) the resolutions of such Loan Party’s board of directors or other appropriate governing body approving and authorizing the execution, delivery and performance of this Amendment; and

(4)a good standing certificate (to the extent such concept is known in the relevant jurisdiction) from the applicable Governmental Authority of the Borrower’s and the Guarantors’ respective jurisdiction of incorporation, organization or formation dated a recent date prior to the Amendment No. 4 Effective Date, other than for those Guarantors where the failure to be in good standing could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

(c)To the extent invoiced at least three business days prior to the Amendment No. 4 Effective Date, all reasonable, documented and invoiced out-of-pocket fees and expenses due to the Administrative Agent and the Lenders required to be paid on the Amendment No. 4 Effective Date (including pursuant to Section 5 hereof) shall have been paid.

(d)(i) No Default or Event of Default shall exist, or would result from the Amendment and related Borrowing or from the application of the proceeds therefrom and (ii) no Event of Default occurred and was continuing at the time a draft of this Amendment was first delivered to each Lender of the Existing Revolving Credit Commitments.

(e)The representations and warranties set forth Section 2 are true and correct.

(f)At least three (3) Business Days prior to the Amendment No. 4 Effective Date, any Loan Party that qualifies as a “legal entity customer” under 31 C.F.R. § 1010.230 shall have delivered, to each Lender that so requests, a certification (the “Beneficial Ownership Certification”) regarding beneficial ownership required by 31 C.F.R. § 1010.230 in relation to such Loan Party.

(g)The Administrative Agent shall have received, (i) for the ratable account of each Term Lender that consents to this Amendment, a consent fee equal to 0.05% of the aggregate outstanding principal amount of its Term B Loans immediately prior to the effectiveness of this Amendment and (ii) for the ratable account of each Revolving Credit Lender that is an Amendment No. 4 Extending Revolving Credit Lender, an extension fee equal to 0.20% of the aggregate principal amount of its Amendment No. 4 Extended Revolving Credit Commitments.

The Administrative Agent shall notify the Borrower and the Lenders of the Amendment No. 4 Effective Date and such notice shall be conclusive and binding.

Section 5.Expenses.

The Borrower agrees to reimburse the Administrative Agent for its reasonable, documented and invoiced out-of-pocket expenses incurred by it in connection with this Amendment, including the reasonable, documented and invoiced fees, charges and disbursements of Cahill Gordon & Reindel LLP, counsel for the Administrative Agent.

Section 6.Execution in Counterparts.

This Amendment may be executed in any number of counterparts and by different parties hereto in different counterparts, each of which shall constitute an original, but all of which when taken together shall constitute one and the same agreement. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart. This Amendment shall become effective when it has been executed by the Administrative Agent and when the Administrative Agent has received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Amendment by telecopier, .pdf or other electronic means shall be effective as delivery of an original executed counterpart of this Amendment.

Section 7.Governing Law and Waiver of Right to Trial by Jury.

THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (WITHOUT RESPECT TO THE PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK). The jurisdiction and waiver of right to trial by jury provisions in Sections 11.14 and 11.15 of the Credit Agreement are incorporated herein by reference mutatis mutandis.

Section 8.Headings.

The headings of the several Sections and subsections of this Amendment are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Amendment.

Section 9.Effect of Amendment.

Except as expressly set forth herein, this Amendment shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. As of the Amendment No. 4 Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the other Loan Documents to the Credit Agreement (including, without limitation, by means of words like “thereunder,” “thereof” and words of like import), shall mean and be a reference to the Credit Agreement as amended hereby, and this Amendment and the Credit Agreement shall be read together and construed as a single instrument. This Amendment shall constitute a Loan Document, a Revolver Extension Request and an Extension Amendment. The parties hereto hereby consent to the Amendment upon the terms set forth herein. The parties hereto acknowledge and agree that the amendment of the Credit Agreement pursuant to this Amendment and all other Loan Documents amended and/or executed and delivered in connection herewith shall not constitute a novation of the Credit Agreement and the other Loan Documents as in effect prior to the Amendment No. 4 Effective Date.

Section 10.Acknowledgement and Affirmation. Each Loan Party confirms for the benefit of the Secured Parties that the guarantee and indemnities under the Credit Agreement and the Guaranty and Security Agreement, as applicable, given by such Loan Party (the “Guaranty Obligations”) shall remain in full force and effect notwithstanding the occurrence of the Amendment No. 4 Effective Date or any other additions, amendments, substitution, or supplements of or to the Loan Documents and the imposition of any amended, new or more onerous obligations under the Loan Documents in relation to any Loan Party, subject to the limitations set out in any Guaranty.

(a)Each Loan Party confirms for the benefit of the Administrative Agent, the Collateral Agent and the Secured Parties that:

(i)any Lien in respect of the obligations of any of the Loan Parties under the Loan Documents (or any of them) which has been created by such Loan Party in favor of the Collateral Agent or the Secured Parties, as the case may be, pursuant to the Guaranty and Security Agreement and each other document to which such Loan Party is a party that purports to grant a Lien in favor of the Collateral Agent or the Secured Parties (together with the Guaranty and Security Agreement, the “Collateral Documents”) shall remain and continue in full force and effect in accordance with its terms notwithstanding the occurrence of the Amendment No. 4 Effective Date and shall extend to the Credit Agreement as amended by this Amendment and this Amendment (including, for the avoidance of doubt, any guaranty), subject to the limitations set out in those Collateral Documents or any other Loan Document;

(ii)it undertakes with respect to paragraph (a) above and this paragraph (b), to do all such acts or execute all such documents the Collateral Agent may reasonably require in order to ensure that the existing Liens under the Collateral Documents continues to be in full force and effect (including, for the avoidance of doubt, any guaranty); and

(iii)all references to the “Credit Agreement”, “Loan Documents”, “Loan” or its equivalent in the existing Collateral Documents or in any guaranty is a reference to the Credit Agreement as amended by this Amendment.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

TOWNSQUARE MEDIA, INC.,
as Borrower

By: /s/ Stuart Rosenstein

Name: Stuart Rosenstein
Title: Executive Vice President and Chief Financial

Officer

BERKSHIRE BROADCASTING, INC.

BRYTON ACQUISITION COMPANY, LLC

GAP BROADCASTING BURLINGTON LICENSE, LLC

GAP BROADCASTING BURLINGTON, LLC

GAP BROADCASTING MIDLAND-ODESSA LICENSE, LLC

GAP BROADCASTING MIDLAND-ODESSA, LLC

LYLA ACQUISITION COMPANY, LLC

LYLA INTERMEDIATE HOLDING, LLC

MILLENNIUM ATLANTIC CITY II HOLDCO, LLC

REGENT LICENSEE OF CHICO, INC.

REGENT LICENSEE OF ERIE, INC.

REGENT LICENSEE OF FLAGSTAFF, INC.

REGENT LICENSEE OF KINGMAN, INC.

REGENT LICENSEE OF LAKE TAHOE, INC.

REGENT LICENSEE OF LEXINGTON, INC.

REGENT LICENSEE OF PALMDALE, INC.

REGENT LICENSEE OF REDDING, INC.

REGENT LICENSEE OF SAN DIEGO, INC.

REGENT LICENSEE OF SOUTH CAROLINA, INC.

REGENT LICENSEE OF WATERTOWN, INC.

SPECIAL EVENTS MANAGEMENT, LLC
TASTE OF COUNTRY PRODUCTIONS, LLC

TOWNSQUARE ACTIVE EVENTS, LLC

TOWNSQUARE BEVERAGE, LLC

TOWNSQUARE COMMERCE, LLC

TOWNSQUARE EXPERIENTIAL, LLC

TOWNSQUARE EXPOS, LLC

TOWNSQUARE INTERACTIVE, LLC

TOWNSQUARE LIFESTYLE EVENTS, LLC

TOWNSQUARE LIVE EVENTS COLORADO, LLC

TOWNSQUARE LIVE EVENTS INTERNATIONAL, LLC

TOWNSQUARE LIVE EVENTS MINNESOTA, LLC

TOWNSQUARE LIVE EVENTS MONTANA, LLC

TOWNSQUARE LIVE EVENTS TEXAS, LLC

TOWNSQUARE LIVE EVENTS WISCONSIN, LLC

TOWNSQUARE LIVE EVENTS, LLC

TOWNSQUARE LIVE PRODUCTIONS, LLC

TOWNSQUARE MANAGEMENT COMPANY, LLC

TOWNSQUARE MEDIA 2010, INC.

TOWNSQUARE MEDIA ABILENE LICENSE, LLC

TOWNSQUARE MEDIA ABILENE, LLC

TOWNSQUARE MEDIA ACQUISITION III, LLC

TOWNSQUARE MEDIA ACQUISITION IV, LLC

TOWNSQUARE MEDIA AMARILLO LICENSE, LLC

TOWNSQUARE MEDIA AMARILLO, LLC

TOWNSQUARE MEDIA ATLANTIC CITY II LICENSE, LLC

TOWNSQUARE MEDIA ATLANTIC CITY II, LLC

TOWNSQUARE MEDIA ATLANTIC CITY III HOLDCO, LLC

TOWNSQUARE MEDIA ATLANTIC CITY III LICENSE, LLC

TOWNSQUARE MEDIA ATLANTIC CITY III, LLC

TOWNSQUARE MEDIA ATLANTIC CITY LICENSE, LLC

TOWNSQUARE MEDIA ATLANTIC CITY, LLC

TOWNSQUARE MEDIA AUGUSTA WATERVILLE LICENSE, LLC

TOWNSQUARE MEDIA AUGUSTA WATERVILLE, LLC

TOWNSQUARE MEDIA BANGOR LICENSE, LLC

TOWNSQUARE MEDIA BANGOR, LLC

TOWNSQUARE MEDIA BATTLE CREEK LICENSE LLC

TOWNSQUARE MEDIA BATTLE CREEK LLC

TOWNSQUARE MEDIA BILLINGS LICENSE, LLC

TOWNSQUARE MEDIA BILLINGS, LLC

TOWNSQUARE MEDIA BINGHAMPTON LICENSE, LLC

TOWNSQUARE MEDIA BINGHAMPTON, LLC

TOWNSQUARE MEDIA BISMARCK LICENSE, LLC

TOWNSQUARE MEDIA BISMARCK, LLC

TOWNSQUARE MEDIA BOISE LICENSE, LLC

TOWNSQUARE MEDIA BOISE, LLC

TOWNSQUARE MEDIA BOZEMAN LICENSE, LLC

TOWNSQUARE MEDIA BOZEMAN, LLC

TOWNSQUARE MEDIA BROADCASTING, LLC

TOWNSQUARE MEDIA CASPER LICENSE, LLC

TOWNSQUARE MEDIA CASPER, LLC

TOWNSQUARE MEDIA CEDAR RAPIDS LICENSE LLC

TOWNSQUARE MEDIA CEDAR RAPIDS LLC

TOWNSQUARE MEDIA CHEYENNE LICENSE, LLC

TOWNSQUARE MEDIA CHEYENNE, LLC

TOWNSQUARE MEDIA DANBURY LICENSE LLC

TOWNSQUARE MEDIA DANBURY LLC

TOWNSQUARE MEDIA DUBUQUE LICENSE, LLC

TOWNSQUARE MEDIA DUBUQUE, LLC

TOWNSQUARE MEDIA DULUTH LICENSE, LLC

TOWNSQUARE MEDIA DULUTH, LLC

TOWNSQUARE MEDIA FARIBAULT LICENSE LLC

TOWNSQUARE MEDIA FARIBAULT LLC

TOWNSQUARE MEDIA GRAND JUNCTION LICENSE, LLC

TOWNSQUARE MEDIA GRAND JUNCTION, LLC

TOWNSQUARE MEDIA KALAMAZOO LICENSE LLC

TOWNSQUARE MEDIA KALAMAZOO LLC

TOWNSQUARE MEDIA KILLEEN-TEMPLE LICENSE, LLC

TOWNSQUARE MEDIA LAKE CHARLES LICENSE, LLC

TOWNSQUARE MEDIA LAKE CHARLES, LLC

TOWNSQUARE MEDIA LANSING LICENSE LLC

TOWNSQUARE MEDIA LANSING LLC

TOWNSQUARE MEDIA LARAMIE LICENSE, LLC

TOWNSQUARE MEDIA LARAMIE, LLC

TOWNSQUARE MEDIA LAWTON LICENSE, LLC

TOWNSQUARE MEDIA LAWTON, LLC

TOWNSQUARE MEDIA LICENSEE OF ALBANY AND LAFAYETTE, INC.

TOWNSQUARE MEDIA LICENSEE OF PEORIA, INC.

TOWNSQUARE MEDIA LICENSEE OF ST. CLOUD, INC.

TOWNSQUARE MEDIA LICENSEE OF UTICA/ROME, INC.

TOWNSQUARE MEDIA LUBBOCK LICENSE, LLC

TOWNSQUARE MEDIA LUBBOCK, LLC

TOWNSQUARE MEDIA LUFKIN LICENSE, LLC

TOWNSQUARE MEDIA LUFKIN, LLC

TOWNSQUARE MEDIA MISSOULA LICENSE, LLC

TOWNSQUARE MEDIA MISSOULA, LLC

TOWNSQUARE MEDIA MONMOUTH-OCEAN LICENSE, LLC

TOWNSQUARE MEDIA MONMOUTH-OCEAN, LLC

TOWNSQUARE MEDIA NEW BEDFORD LICENSE, LLC

TOWNSQUARE MEDIA NEW BEDFORD, LLC

TOWNSQUARE MEDIA ODESSA-MIDLAND II LICENSE, LLC

TOWNSQUARE MEDIA ODESSA-MIDLAND II, LLC

TOWNSQUARE MEDIA ODESSA-MIDLAND LICENSE, LLC

TOWNSQUARE MEDIA ODESSA-MIDLAND, LLC

TOWNSQUARE MEDIA OF ALBANY AND LAFAYETTE, INC.

TOWNSQUARE MEDIA OF ALBANY, INC.

TOWNSQUARE MEDIA OF BUFFALO, INC.

TOWNSQUARE MEDIA OF EL PASO, INC.

TOWNSQUARE MEDIA OF EVANSVILLE/OWENSBORO, INC.

TOWNSQUARE MEDIA OF FLINT, INC.

TOWNSQUARE MEDIA OF FT. COLLINS AND GRAND RAPIDS, LLC

TOWNSQUARE MEDIA OF FT. COLLINS, INC.

TOWNSQUARE MEDIA OF GRAND RAPIDS, INC.

TOWNSQUARE MEDIA OF KILLEEN-TEMPLE, INC.

TOWNSQUARE MEDIA OF LAFAYETTE, LLC

TOWNSQUARE MEDIA OF MIDWEST, LLC

TOWNSQUARE MEDIA OF PRESQUE ISLE, INC.

TOWNSQUARE MEDIA OF ST. CLOUD, INC.

TOWNSQUARE MEDIA OF UTICA/ROME, INC.

TOWNSQUARE MEDIA ONEONTA LICENSE, LLC

TOWNSQUARE MEDIA ONEONTA, LLC

TOWNSQUARE MEDIA PITTSFIELD LICENSE

TOWNSQUARE MEDIA PITTSFIELD, LLC

TOWNSQUARE MEDIA POCATELLO LICENSE, LLC

TOWNSQUARE MEDIA POCATELLO, LLC

TOWNSQUARE MEDIA PORTLAND LICENSE LLC

TOWNSQUARE MEDIA PORTLAND LLC

TOWNSQUARE MEDIA PORTSMOUTH LICENSE LLC

TOWNSQUARE MEDIA PORTSMOUTH LLC

TOWNSQUARE MEDIA POUGHKEEPSIE LICENSE, LLC

TOWNSQUARE MEDIA POUGHKEEPSIE, LLC

TOWNSQUARE MEDIA PRESQUE ISLE LICENSE, LLC

TOWNSQUARE MEDIA QUAD CITIES LICENSE LLC

TOWNSQUARE MEDIA QUAD CITIES LLC

TOWNSQUARE MEDIA QUINCY-HANNIBAL LICENSE, LLC

TOWNSQUARE MEDIA QUINCY-HANNIBAL, LLC

TOWNSQUARE MEDIA ROCHESTER LICENSE LLC

TOWNSQUARE MEDIA ROCHESTER LLC

TOWNSQUARE MEDIA ROCKFORD LICENSE LLC

TOWNSQUARE MEDIA ROCKFORD LLC

TOWNSQUARE MEDIA SAN ANGELO LICENSE, LLC

TOWNSQUARE MEDIA SAN ANGELO, LLC

TOWNSQUARE MEDIA SEDALIA LICENSE, LLC

TOWNSQUARE MEDIA SEDALIA, LLC

TOWNSQUARE MEDIA SHELBY LICENSE, LLC

TOWNSQUARE MEDIA SHELBY, LLC

TOWNSQUARE MEDIA SHREVEPORT LICENSE, LLC

TOWNSQUARE MEDIA SHREVEPORT, LLC

TOWNSQUARE MEDIA SIOUX FALLS LICENSE, LLC

TOWNSQUARE MEDIA SIOUX FALLS, LLC

TOWNSQUARE MEDIA TEXARKANA LICENSE, LLC

TOWNSQUARE MEDIA TEXARKANA, LLC

TOWNSQUARE MEDIA TRENTON LICENSE, LLC

TOWNSQUARE MEDIA TRENTON, LLC

TOWNSQUARE MEDIA TRI-CITIES LICENSE, LLC

TOWNSQUARE MEDIA TRI-CITIES, LLC

TOWNSQUARE MEDIA TUSCALOOSA LICENSE, LLC

TOWNSQUARE MEDIA TUSCALOOSA, LLC

TOWNSQUARE MEDIA TWIN FALLS LICENSE, LLC

TOWNSQUARE MEDIA TWIN FALLS, LLC

TOWNSQUARE MEDIA TYLER LICENSE, LLC

TOWNSQUARE MEDIA TYLER, LLC

TOWNSQUARE MEDIA VICTORIA LICENSE, LLC

TOWNSQUARE MEDIA VICTORIA, LLC

TOWNSQUARE MEDIA WATERLOO LICENSE LLC

TOWNSQUARE MEDIA WATERLOO LLC

TOWNSQUARE MEDIA WEST CENTRAL HOLDINGS, LLC

TOWNSQUARE MEDIA WEST CENTRAL INTERMEDIATE HOLDINGS, LLC

TOWNSQUARE MEDIA WEST CENTRAL RADIO BROADCASTING, LLC

TOWNSQUARE MEDIA WICHITA FALLS LICENSE, LLC

TOWNSQUARE MEDIA WICHITA FALLS, LLC

TOWNSQUARE MEDIA YAKIMA LICENSE, LLC

TOWNSQUARE MEDIA YAKIMA, LLC

TOWNSQUARE MMN, LLC

TOWNSQUARE NEW JERSEY HOLDCO, LLC

TOWNSQUARE NEXT, LLC

TOWNSQUARE RADIO HOLDINGS, LLC

TOWNSQUARE RADIO, INC.

TOWNSQUARE RADIO, LLC

ZADER ACQUISITION COMPANY LLC

each as a Guarantor

By: /s/ Stuart Rosenstein

Name: Stuart Rosenstein
Title: Executive Vice President and Chief Financial

Officer

ROYAL BANK OF CANADA,
as Administrative Agent

By: /s/ Rodica Dutka__________________

Name: Rodica Dutka
Title: Manager, Agency

ROYAL BANK OF CANADA,
as a Lender, an Amendment No. 4 Extending Revolving Credit Lender, Swingline Lender and L/C Issuer

By: /s/ Alfonse Simone__________________

Name: Alfonse Simone
Title: Authorized Signatory

as a Lender and an Amendment No. 4 Extending Revolving Credit Lender

By:

Name:
Title:

    1

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 officer 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 officer 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: May 7, 2019	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 officer 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 officer 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: May 7, 2019	By:	/s/ Bill Wilson
		Name: Bill Wilson
		Title: 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 March 31, 2019 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: May 7, 2019	/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 March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Bill Wilson, as 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: May 7, 2019	/s/ Bill Wilson
	Name: Bill Wilson
	Title: 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	3 Months Ended
	Mar. 31, 2019	May 06, 2019
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	Townsquare Media, Inc.
Entity Central Index Key	0001499832
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	true
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		14,313,844
Common Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		3,011,634
Common Class C
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,636,341

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 60,808	$ 61,396
Accounts receivable, net of allowance of $3,454 and $3,187, respectively	56,167	62,459
Prepaid expenses and other current assets	10,150	8,939
Current assets held for sale	10,185	19,763
Total current assets	137,310	152,557
Property and equipment, net	112,771	112,377
Intangible assets, net	478,376	478,938
Goodwill	226,981	226,981
Investments	11,775	9,505
Operating lease right-of-use assets	45,724
Other assets	294	6,909
Total assets	1,013,231	987,267
Current liabilities:
Accounts payable	12,828	13,393
Current portion of long-term debt	5	5
Deferred revenue	8,726	7,922
Accrued expenses and other current liabilities	17,778	32,749
Short-term operating lease liabilities	8,980
Accrued interest	9,169	4,563
Current liabilities held for sale	10,375	6,931
Current liabilities of discontinued operations	203	207
Total current liabilities	68,064	65,770
Long-term debt, less current portion (net of deferred finance costs of $5,155 and $4,779, respectively)	555,705	555,330
Deferred tax liability	14,424	16,031
Long-term operating lease liabilities	39,785
Other long-term liabilities	1,788	8,559
Total liabilities	679,766	645,690
Stockholders’ equity:
Common stock	190	190
Additional paid-in capital	366,711	365,835
Retained deficit	(33,883)	(25,735)
Non-controlling interest	447	1,287
Total stockholders’ equity	333,465	341,577
Total liabilities and stockholders’ equity	1,013,231	987,267
Common Class A
Stockholders’ equity:
Common stock	143	143
Common Class B
Stockholders’ equity:
Common stock	30	30
Common Class C
Stockholders’ equity:
Common stock	$ 17	$ 17

XML

Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Allowance for doubtful accounts	$ 3,187	$ 3,454
Deferred financing costs	$ (4,779)	$ (5,155)
Common shares authorized (in shares)	400,000,000
Common Class A
Common shares authorized (in shares)	300,000,000	300,000,000
Common shares outstanding (in shares)	14,313,844	14,297,066
Common shares issued (in shares)	14,313,844	14,297,066
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common Class B
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares outstanding (in shares)	3,011,634	3,011,634
Common shares issued (in shares)	3,011,634	3,011,634
Common par value (in dollars per share)	$ 0.01	$ 0.01
Common Class C
Common shares authorized (in shares)	50,000,000	50,000,000
Common shares outstanding (in shares)	1,636,341	1,636,341
Common shares issued (in shares)	1,636,341	1,636,341
Common par value (in dollars per share)	$ 0.01	$ 0.01

XML

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net revenue	$ 93,682	$ 87,983
Operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	68,629	64,356
Depreciation and amortization	6,508	4,383
Corporate expenses	5,587	5,649
Stock-based compensation	876	190
Transaction costs	148	159
Business realignment costs	4	0
Net (gain) loss on sale and retirement of assets	19	(10)
Total operating costs and expenses	81,771	74,727
Operating income	11,911	13,256
Other expense:
Interest expense, net	8,595	8,427
Other expense, net	34	32
Income from continuing operations before income taxes	3,282	4,797
Provision for income taxes	908	1,330
Net income from continuing operations	2,374	3,467
Net loss from discontinued operations, net of income taxes	(7,164)	(30,056)
Net loss	(4,790)	(26,589)
Net (loss) income attributable to:
Controlling interests	(5,237)	(26,807)
Non-controlling interests	$ 447	$ 218
Basic income (loss) per share:
Continuing operations (in dollars per share)	$ 0.13	$ 0.19
Discontinued operations (in dollars per share)	(0.39)	(1.63)
Diluted income (loss) per share:
Continuing operations (in dollars per share)	0.09	0.13
Discontinued operations (in dollars per share)	$ (0.26)	$ (1.09)
Weighted average shares outstanding:
Basic (in shares)	18,478	18,478
Diluted (in shares)	27,456	27,456
Dividends declared (in usd per share)	$ 0.075	$ 0.075

XML

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Warrants	Additional Paid-in Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive Loss	Non- Controlling Interest	Common Class A	Common Class A Common Stock	Common Class B	Common Class B Common Stock	Common Class C	Common Class C Common Stock	Warrants	Warrants Warrants
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 warrants) at Dec. 31, 2017														8,977,676	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	(26,589)				(26,807)		218
Dividends declared	(2,061)				(2,061)
Stock-based compensation	190			190
Issuance of restricted stock (in shares)									18,037
Foreign currency exchange	(126)					(126)
Cash distributions to non-controlling interests	(27)						(27)
Common shares outstanding, ending balance (in shares) at Mar. 31, 2018									13,837,676		3,022,484		1,636,341
Warrants outstanding, ending balance (in warrants) at Mar. 31, 2018														8,977,676
Stockholders' equity, ending balance at Mar. 31, 2018	354,738	185		367,231	(13,332)	(658)	1,312
Common shares outstanding, beginning balance (in shares) at Dec. 31, 2018								14,297,066	14,297,066	3,011,634	3,011,634	1,636,341	1,636,341
Warrants outstanding, beginning balance (in warrants) at Dec. 31, 2018															8,977,676
Stockholders' equity, beginning balance at Dec. 31, 2018	341,577	190		365,835	(25,735)	0	1,287
Increase (Decrease) in Stockholders' and Members' Equity [Roll Forward]
Net (loss) income	(4,790)				(5,237)		447
Dividends declared	(2,095)				(2,095)
Stock-based compensation	876			876
Issuance of restricted stock (in shares)									16,778
Cash distributions to non-controlling interests	(1,287)						(1,287)
Common shares outstanding, ending balance (in shares) at Mar. 31, 2019								14,313,844	14,313,844	3,011,634	3,011,634	1,636,341	1,636,341
Warrants outstanding, ending balance (in warrants) at Mar. 31, 2019			8,977,676											8,977,676
Stockholders' equity, ending balance at Mar. 31, 2019	$ 333,465	$ 190		$ 366,711	$ (33,883)	$ 0	$ 447

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net loss	$ (4,790)	$ (26,589)
Loss from discontinued operations	(7,164)	(30,056)
Income from continuing operations	2,374	3,467
Adjustments to reconcile income from continuing operations to net cash flows from operating activities
Depreciation and amortization	6,508	4,383
Amortization of deferred financing costs	376	382
Net deferred taxes and other	908	1,330
Provision for doubtful accounts	243	549
Stock-based compensation expense	876	190
Trade activity, net	(2,503)	(3,835)
Non-cash interest expense	0	(5)
Write-off of deferred financing costs	0	97
Net (gain) loss on sale of assets	19	(10)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	6,862	7,902
Prepaid expenses and other assets	(1,847)	(2,865)
Accounts payable	(563)	(2,720)
Accrued expenses	(14,617)	(7,617)
Accrued interest	4,607	3,549
Other long-term liabilities	809	(208)
Net cash provided by operating activities - continuing operations	4,052	4,589
Net cash (used in) provided by operating activities - discontinued operations	1,890	(5,169)
Net cash (used in) provided by operating activities	5,942	(580)
Cash flows from investing activities:
Purchase of property and equipment	(5,033)	(4,420)
Payments for acquisitions, net of cash acquired	(3)	(48)
Proceeds from sale of assets	63	50
Net cash used in investing activities - continuing operations	(4,973)	(4,418)
Net cash (used in) provided by investing activities - discontinued operations	1,790	(1,020)
Net cash used in investing activities	(3,183)	(5,438)
Cash flows from financing activities:
Repayment of bank debt	0	(9,519)
Dividend payments	(2,059)	0
Cash distribution to non-controlling interest	(1,287)	(8)
Repayments of capitalized obligations	(1)	(1)
Net cash used in financing activities - continuing operations	(3,347)	(9,528)
Net cash used in financing activities - discontinued operations	0	(19)
Net cash used in financing activities	(3,347)	(9,547)
Effect of exchange rate changes	0	3
Net decrease in cash and cash equivalents	(588)	(15,562)
Cash and cash equivalents, beginning of period	61,396	62,041
Cash and cash equivalents, end of period	60,808	46,479
Cash payments:
Interest	3,889	4,434
Income taxes	68	32
Supplemental Disclosure of Non-cash Activities:
Dividends declared during the period	2,198
Dividend Declared
Supplemental Disclosure of Non-cash Activities:
Dividends declared during the period	$ 2,095	$ 2,061

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Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2019

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 U.S. Our assets include 321 radio stations and more than 330 local websites in 67 U.S. markets, a digital marketing solutions company (Townsquare Interactive) serving approximately 16,200 small to medium sized businesses, a proprietary digital programmatic advertising platform (Townsquare Ignite), and approximately 200 local live events each year. Our brands include local media assets such as WYRK, KLAQ, K2 and NJ101.5; iconic local and regional events such as the WYRK's Taste of Country, the Boise Music Festival, the Red Dirt BBQ & Music Festival and Taste of Fort Collins; and leading tastemaker music and entertainment websites such as XXLmag.com, TasteofCountry.com and Loudwire.com. For more information, please visit www.townsquaremedia.com, www.townsquareinteractive.com, and www.townsquareignite.com.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

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, 2018. 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, 2018 (the "2018 Annual Report on Form 10-K") filed with the Securities and Exchange Commission ("SEC") on March 12, 2019.

Recently Issued Accounting Standards

In January 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-01, Leases (Topic 842): Codification Improvements. This new guidance includes a codification improvement to the transition guidance in ASC 842 to clarify that entities adopting ASC 842 do not need to provide interim-period disclosures required by ASC 250, which states in the fiscal year in which a new accounting principle is adopted, financial information reported for interim periods after the date of adoption shall disclose the effect of the change on income from continuing operations, net income (or other appropriate captions of changes in the applicable net assets or performance indicator), and related per-share amounts, if applicable, for those post-change interim periods. Accordingly, interim disclosures about the effect on income in the year of adoption of ASC 842 are excluded from the required disclosures in transition, in a manner similar to the annual disclosures in ASC 250. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company does not believe ASU 2019-01 will have an impact on its consolidated financial statements.

Change in Accounting Policy

Segment Reporting

Operating segments are organized internally by type of products and services provided.  On January 2, 2019, the Company announced that its former Co-Chief Executive Officer (“CEO”) Dhruv Prasad resigned and that its other Co-CEO Bill Wilson would become the Company’s sole CEO.  As a result of these organization changes, Bill Wilson also became the Company’s Chief Operating Decision Maker (“CODM”).  Based on the information reviewed by Mr. Wilson in his capacity as CODM, the Company has identified three reportable operating segments, which are Advertising, which includes broadcast and digital advertising products and solutions, Townsquare Interactive, which is our digital marketing solutions business and Live Events, which is comprised of the Company’s live events, including concerts, expositions and other experiential events.  The Company has concluded that each of these operating segments shall be presented separately. Prior year segment reporting has been restated to conform with the current year presentation.  

Leases

In February 2016, the FASB issued 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 ("ROU") 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 ASC Topic 840. The standard is effective

for fiscal years beginning after December 15, 2018, and allows a number of practical expedients that the Company has elected to apply. The guidance ASU 2018-11, Leases (Topic 842): Targeted Improvements, which amends ASC 842 provides entities with an optional transition method for adopting the new lease standard by allowing entities to apply the new guidance at the adoption date by recognizing a cumulative-effect adjustment to the opening balance of retained earnings and not to restate comparative periods presented. The Company adopted the standard using the optional transition method as of January 1, 2019, using the package of practical expedients as well as several other permitted practical expedients that allow for a more simplified transition. Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. As a result of the adoption of the new lease accounting guidance, the Company recognized at adoption (a) a lease liability of approximately $48.4 million, which represents the present value of the remaining lease payments, discounted at a weighted average discount rate of 7.04%, and (b) a ROU asset of approximately $45.4 million which represents the lease liability of $48.4 million adjusted for accrued rent of approximately $2.9 million. The Company recorded an adjustment of $0.8 million at the adoption date of January 1, 2019 to stockholders equity to properly account for the Company's operating lease ROU assets and operating lease liabilities. The most significant impact of this standard was the recognition of ROU assets and lease obligations for operating leases.

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Revenue Recognition

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

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

	Three Months Ended March 31, 2018
	Advertising		Townsquare Interactive		Live Events		Total
Net Revenue (ex Political)	$	70,841	$	10,796	$	5,646	$	87,283
Political	700		—		—		700
Net Revenue	$	71,541	$	10,796	$	5,646	$	87,983

	Three Months Ended March 31, 2019
	Advertising		Townsquare Interactive		Live Events		Total
Net Revenue (ex Political)	$	74,017	$	14,208	$	5,159	$	93,384
Political	298		—		—		298
Net Revenue	$	74,315	$	14,208	$	5,159	$	93,682

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 on a subscription basis under the brand name Townsquare Interactive, digital marketing solutions 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 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 based on the episodic nature of 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 mostly single day events, but some are multi-day 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 months ended March 31, 2018 and 2019.

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

	At Adoption January 1, 2018		March 31, 2018		December 31, 2018		March 31, 2019
Receivables	$	60,492	$	53,788	$	62,459	$	56,167
Short-term contract liabilities (deferred revenue)	$	7,992	$	7,973	$	7,922	$	8,726

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 ended March 31, 2018 and 2019.

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 adoption January 1, 2018 is primarily driven by $5.4 million of recognized revenue for the three months ended March 31, 2018, offset by cash payments received or due in advance of satisfying our performance obligations. The increase in the contract liabilities balance that was included in the deferred revenue balance at December 31, 2018 is primarily driven by $6.2 million of recognized revenue for the three months ended March 31, 2019, offset by cash payments received or due in advance of satisfying our performance obligations. No significant changes in the timeframe of the satisfaction of contract liabilities have occurred during the three months ended March 31, 2019.

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 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 $0.6 million of amortization for the three months ended March 31, 2018. As of December 31, 2018, we had a balance of $3.0 million in deferred costs and have recognized $0.5 million for the three months ended March 31, 2019. No impairment losses have been recognized or changes made to the timeframe for performance of the obligations related to deferred contract assets during the three months ended March 31, 2018 and 2019.

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.

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Acquisitions & Divestitures

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Acquisitions & Divestitures

Acquisitions & Divestitures

On July 2, 2018, the Company acquired certain assets and liabilities related to three radio stations in Princeton, NJ ("the Princeton Acquisition") from Connoisseur Media, LLC for $17.4 million, including a working capital adjustment of $0.1 million. The acquired assets included WPST-FM, WNJE-AM and WCHR-AM. The consideration was paid with cash on hand. The Company estimated the fair value of intangibles acquired (FCC licenses) to be $6.4 million using the greenfield method and the purchase price was further allocated to the assets and liabilities acquired at their fair value at the date of acquisition, with the excess of purchase price over the net assets of $9.9 million recorded as goodwill. As of May 7, 2019, the Company was still in the process of finalizing the valuation of the acquired assets and assumed liabilities, and therefore the purchase price allocation should be considered preliminary. The preliminary purchase price allocation may be subject to further refinement. The goodwill balance may be adjusted pending the completion of the valuation of the assets acquired and liabilities assumed as described above. To the extent that significant changes occur in the future, the Company will disclose such changes in the reporting period in which they occur.

The preliminary Princeton Acquisition purchase price allocation is shown in the following table (in thousands):

Prepaid and other current assets	$	256
FCC licenses	6,409
Property and equipment, net	976
Goodwill	9,915
Accounts payable and accrued expenses	(201		)
Total purchase price	$	17,355

On March 18, 2019, the Company closed on the sale of its Arizona Bridal Shows to MarketPlace Events, LLC for $2.0 million. The Company realized a gain in connection with the sale of $1.4 million, which is included in net loss from discontinued operations, net of income taxes in the Company's Consolidated Statement of Operations for the three months ended March 31, 2019.

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Interim Financial Data

3 Months Ended

Mar. 31, 2019

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 2018 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 months ended March 31, 2019 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, 2019. The Consolidated Balance Sheet as of December 31, 2018 is derived from the audited financial statements at that date.     

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. 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. 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.

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.

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Investments

3 Months Ended

Mar. 31, 2019

Investments, All Other Investments [Abstract]

Investments

Investments

Long-term investments consist of minority holdings in companies that management believes are synergistic with Townsquare. As management does not exercise significant control over operating and financial policies of the investees, 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. Effective January 1, 2018, the Company adopted ASU 2016-01 which requires cost method investments to be measured at fair value, with any changes in value recognized in net income. The ASU also allows the use of a qualitative assessment when analyzing impairment of equity investments without readily determinable fair values.

During the three months ended March 31, 2019 approximately $0.3 million of a convertible note receivable previously outstanding at December 31, 2018 converted into an investment. Additionally, during the three months ended March 31, 2019, the Company made an investment in a small business totaling $2.0 million. The investments represent minority ownership

positions that are accounted for under the cost method of accounting. These transactions were recorded as investments in the Company's Consolidated Balance Sheet as of March 31, 2019.

There were no investments made during the three months ended March 31, 2018.

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Property and Equipment

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

Property and equipment consisted of the following (in thousands):

	December 31, 2018			March 31, 2019
Land and improvements	$	21,062		$	21,235
Buildings and leasehold improvements	43,525			44,801
Broadcast equipment	81,690			83,188
Computer and office equipment	14,801			16,104
Furniture and fixtures	15,789			16,273
Transportation equipment	16,899			17,512
Software development costs	21,332			22,521
Total property and equipment, gross	215,098			221,634
Less accumulated depreciation and amortization	(102,721		)	(108,863		)
Total property and equipment, net	$	112,377		$	112,771

Depreciation and amortization expense for property and equipment was $4.1 million and $6.3 million for the three months ended March 31, 2018 and 2019, respectively.

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2019

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.

In January 2019, management concluded that the Company should exit its music festival business and commenced an active search for a buyer.  As a result of these actions, the music festivals business met the criteria for assets held for sale which requires the Company to measure its long-lived assets at the lower of carrying value or fair value less costs to sell.  During the first quarter of 2019, management received indications of fair value.  This assessment resulted in a $10.0 million impairment charge against the assets of the disposal group which have been recorded in discontinued operations for the three months ended March 31, 2019.

There were no changes in the carrying value of goodwill for the three months ended March 31, 2018.    

Intangible assets consist of the following (in thousands):

	Estimated Useful Life	December 31, 2018		March 31, 2019
Intangible Assets:
FCC licenses	Indefinite	$	473,412	$	473,412
Customer and advertising relationships	10 years	6,540		6,540
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	3,196		2,761
Other intangibles	3 years	161		161
Total		485,756		485,321
Less: Accumulated amortization		(6,818)		(6,945		)
Net amount		$	478,938	$	478,376

Amortization expense for definite-lived intangible assets was $0.3 million and $0.2 million for the three months ended March 31, 2018 and 2019, respectively.

Estimated future amortization expense for each of the five succeeding fiscal years and thereafter as of March 31, 2019 is as follows (in thousands):

2019 (remainder)	$	673
2020	849
2021	840
2022	837
2023	626
Thereafter	1,139
	$	4,964

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Long-Term Debt

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Total debt outstanding is summarized as follows (in thousands):

	December 31, 2018			March 31, 2019
2023 Notes	$	278,148		$	278,148
Term Loans	282,332			282,332
Capitalized obligations	10			9
Debt before deferred financing costs	560,490			560,489
Deferred financing costs	(5,155		)	(4,779		)
Total debt	555,335			555,710
Less: current portion of long-term debt	(5		)	(5		)
Total long-term debt	$	555,330		$	555,705

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.

During the year ended December 31, 2018, the Company voluntarily repurchased $1.9 million of its 2023 Notes at a market price below par, including accrued interest and recognized a gain of $0.1 million. The repurchased notes were canceled by the Company. The Company recognized a loss of $0.04 million on the write-off of unamortized deferred financing costs in connection with the voluntary repurchases of its 2023 Notes.        

As of March 31, 2019, the interest rate on the Term Loans was 5.50%, based on the current LIBOR rate and an applicable margin of 300 basis points. 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 March 31, 2019, 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.

On April 30, 2019, the Company entered into an amendment under its existing credit agreement to, among other things, extend the maturity date of the existing revolving credit facility by two years to April 1, 2022, coterminous with the Term Loan maturity date (with a springing maturity six months inside of the maturity date of the Term Loan) and to amend certain asset sale provisions. The Term Loans mature on April 1, 2022. 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 (subject to certain reductions).  At December 31, 2018, we were not required to make an excess free cash flow payment on the outstanding Term Loans. 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 March 31, 2019.

As of March 31, 2019, based on available market information, the estimated fair value of the 2023 Notes and the Term Loans were $267.2 million and $277.7 million, respectively.

Annual maturities of the Company's long-term debt as of March 31, 2019 are as follows (in thousands):

2019 (remainder)	$	4
2020	5
2021	—
2022	282,332
2023	278,148
Thereafter	—
	$	560,489

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Stockholders' Equity

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

The table below presents a summary, as of March 31, 2019, 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	14,313,844	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	27,939,495
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 483,355 shares of restricted Class A common stock, subject to vesting terms, but exclude 4,976,285 of Class A common stock and 4,550,991 of Class B common stock issuable upon exercise of stock options which have an exercise price between $6.25 and $9.63 per share. Additionally, the Company is authorized to issue 50,000,000 shares of undesignated preferred stock.

Holders of shares of Class A common stock, Class B common stock and Class C common stock vote together as a single class on all matters presented to the Company's stockholders for their vote or approval, except as otherwise required by applicable law. Each holder of the Company's Class A common stock is entitled to one vote per share on each matter submitted to a vote of stockholders. The Company's Class A common stock is neither convertible nor redeemable. Each holder of the Company's Class B common stock is entitled to ten votes per share on each matter submitted to a vote of stockholders. The Company's Class B common stock is not redeemable, but is convertible 1:1 (including automatically upon certain transfers) into Class A common stock. Holders of shares of Class C common stock are not entitled to any voting rights with respect to such shares. The Company’s Class C common stock is not redeemable, but is convertible 1:1 (including automatically upon certain transfers) into Class A common stock.    

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 March 31, 2019, 1,946,291 shares were available for grant.

During the three months ended March 31, 2019, the Company issued 16,778 shares of restricted Class A common stock, none of which were vested as of March 31, 2019. The fair value of the restricted grants was $5.96 share.

The following table summarizes stock option activity for the three months ended March 31, 2019:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at January 1, 2019	9,688,424		$	8.23	6.15	$	—
Granted	—
Exercised	—
Forfeited	(161,148	)
Outstanding at March 31, 2019	9,527,276		$	8.26	5.85	$	—

As of March 31, 2019, there were 483,355 shares of restricted Class A common stock outstanding with a weighted average grant date fair value per share of $6.56. The fair value of the restricted stock is equal to the closing share price on the date prior to the grant. The vesting term of the shares of restricted stock vary from 1 to 5 years.

Stock-based compensation expense was $0.2 million and $0.9 million for the three months ended March 31, 2018 and 2019, respectively. As of March 31, 2019, total unrecognized stock-based compensation expense related to our stock options and restricted stock was $3.8 million and $2.4 million, respectively, and is expected to be recognized over a weighted average period of 2.8 and 3.0 years, respectively.

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Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company's effective tax rate for the three months ended March 31, 2018 and 2019 was approximately 27.7% and 27.7%, 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 three months ended March 31, 2019 primarily relates to certain non-deductible items under the TCJA provisions and state, local and foreign income taxes.

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Accrued Expenses and Other Current Liabilities

3 Months Ended

Mar. 31, 2019

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, 2018		March 31, 2019
Accrued compensation and benefits	$	14,863	$	4,958
Accrued professional fees	1,449		809
Accrued commissions	1,980		2,007
Accrued taxes	2,686		2,004
Accrued music and FCC licensing	2,315		1,218
Accrued publisher fees	2,213		1,615
Accrued national representation fees	1,276		1,480
Due to sellers, business combinations	26		3
Deferred rent	2,139		—
Dividends payable	2,162		2,198
Accrued other	1,640		1,486
	$	32,749	$	17,778

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Lease and Other Commitments

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Lease and Other Commitments

Leases and Other Commitments

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.     

In September 2015, the Company closed on the sale of 43 towers located on 41 sites in 28 markets to a subsidiary of Vertical Bridge, LLC ("Vertical Bridge") (the "Tower Sale"). The divested towers house antenna that broadcast certain of the Company’s radio stations. As part of this transaction, the Company leased a portion of the space on the sold towers that house

certain of the Company's antenna. The lease is for a period of 35 years, including an initial term of twenty years and three optional 5-year renewal periods. The Company will pay $41 of rent per annum ($1 per site per annum) to Vertical Bridge for the right to house its existing antenna on the divested towers. In addition, the Company determined that the lease is an operating lease and is amortizing the long-term prepaid rent asset and deferred gain on the sale of towers as offsetting amounts over the lease term. The ending balances of the long-term prepaid rent asset and deferred gain as of December 31, 2018 of $6.6 million were included in the opening balance of the operating lease ROU assets and operating lease liabilities at January 1, 2019. The Company will continue to amortize these balances over the remaining lease-term.

The below table summarizes the impact on the Company's Consolidated Balance Sheet at the adoption date of January 1, 2019 and as of March 31, 2019, respectively (dollars in thousands):

	At Adoption January 1, 2019			March 31, 2019
Operating lease right-of-use-assets	$	45,434		$	45,724
Total operating lease right-of-use-assets	$	45,434		$	45,724
Deferred rent	(2,111		)	—
Operating lease liabilities	48,361			48,765
Retained deficit	(816		)	—
Total liabilities and stockholders' equity	$	45,434		$	48,765
Weighted Average Remaining Lease Term
Operating leases	6.36 years			6.26 years
Weighted Average Discount Rate
Operating leases	7.04		%	7.05		%

Maturities of lease liabilities for operating leases are as follows as of March 31, 2019 (in thousands):

2019 (remainder)	$	8,700
2020	9,610
2021	7,765
2022	6,881
2023	5,635
Thereafter	14,453
Total lease payments	53,044
Less: imputed interest	(10,842		)
Add: deferred gain sale leaseback transaction	6,563
Total	$	48,765

The components of lease expense recorded to operating and corporate expense for the three months ended March 31, 2019 are as follows (dollars in thousands):

Operating lease cost	$	2,950
Short-term lease cost	15
Variable lease cost	9
Total lease cost	$	2,974

Supplemental cash flow information related to leases for the three months ended March 31, 2019 are as follows (dollars in thousands):

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,874
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,287

As of March 31, 2019, we have additional operating leases, primarily for office space that have not yet commenced totaling $2.1 million. These operating leases will commence in 2019 with lease terms of 20 years.

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 March 31, 2019 is approximately $15.6 million and is expected to be paid in accordance with the agreements through September 2021. In addition, the Company has aggregate commitments of $1.1 million for other broadcasting services through December 2019 and aggregate commitments of $10.0 million for a business management platform through 2023.

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Segment Reporting

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Operating segments are organized internally by type of products and services provided.  On January 2, 2019, the Company announced that its former Co-Chief Executive Officer (“CEO”) Dhruv Prasad resigned and that its other Co-CEO Bill Wilson would become the Company’s sole CEO.  As a result of these organization changes, Bill Wilson also became the Company’s Chief Operating Decision Maker (“CODM”).  Based on the information reviewed by Mr. Wilson in his capacity as CODM, the Company has identified three reportable operating segments, which are Advertising, which includes broadcast and digital advertising products and solutions, Townsquare Interactive, which is our digital marketing solutions business and Live Events, which is comprised of the Company’s live events, including concerts, expositions and other experiential events.  The Company has concluded that each of these operating segments shall be presented separately. Prior year segment reporting has been restated to conform with the current year presentation.  

The following table presents the Company's reportable segment results for the three months ended March 31, 2018 (in thousands):    

	Advertising		Townsquare Interactive		Live Events		Corporate and Other Reconciling Items			Total
Net revenue	$	71,541	$	10,796	$	5,646	$	—		$	87,983
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	52,650		7,545		4,161		—			64,356
Depreciation and amortization	2,670		115		136		1,462			4,383
Corporate expenses	—		—		—		5,649			5,649
Stock-based compensation	18		7		11		154			190
Transaction costs	—		—		—		159			159
Business realignment costs	—		—		—		—			—
Net gain on sale and retirement of assets	—		—		—		(10		)	(10		)
Operating income (loss)	$	16,203	$	3,129	$	1,338	$	(7,414	)	$	13,256
Capital expenditures	$	2,863	$	8	$	2	$	1,547		$	4,420

The following table presents the Company's reportable segment results for the three months ended March 31, 2019 (in thousands):

	Advertising		Townsquare Interactive		Live Events		Corporate and Other Reconciling Items			Total
Net revenue	$	74,315	$	14,208	$	5,159	$	—		$	93,682
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	54,889		9,827		3,913		—			68,629
Depreciation and amortization	3,098		121		145		3,144			6,508
Corporate expenses	—		—		—		5,587			5,587
Stock-based compensation	92		35		23		726			876
Transaction costs	—		—		—		148			148
Business realignment costs	—		—		—		4			4
Net loss on sale and retirement of assets	—		—		—		19			19
Operating income (loss)	$	16,236	$	4,225	$	1,078	$	(9,628	)	$	11,911
Capital expenditures	$	3,378	$	73	$	1	$	1,581		$	5,033

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Discontinued Operations

3 Months Ended

Mar. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

During the fourth quarter of 2017, we undertook a corporate strategic review of the Company’s operations and concluded the Company should exit certain entertainment businesses and that two live event verticals, Premium Music and Holiday, would be discontinued. The assets, liabilities and results of operations of these businesses were reclassified as 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 North American Midway Entertainment ("NAME") to North American Fairs, LLC for $23.5 million. We recognized a loss on the sale of NAME of approximately $1.8 million within net loss from discontinued operations during the year ended December 31, 2018. In addition, on June 29, 2018, the Company entered into an Agreement of Purchase and Sale to transfer its 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. The purchase and sale was completed on the same day and 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 during the year ended December 31, 2018.

During the first quarter of 2019, management concluded that the Company should exit its music festival business and it would therefore be discontinued. The Company commenced a search for a buyer of the music festivals. The assets, liabilities and results of operations of this business has been reclassified as discontinued operations and assets held for sale.

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, 2018		March 31, 2019
Accounts receivable	$	9	$	4
Prepaid expenses and other current assets	435		1,085
Property and equipment, net	1,874		1,759
Intangible assets, net	3,843		3,751
Goodwill	13,602		3,586
Current assets held for sale	19,763		10,185
Accounts payable	89		58
Deferred revenue	6,688		10,233
Accrued expenses and other current liabilities	154		84
Current liabilities held for sale	6,931		10,375
Accrued expenses and other current liabilities	207		203
Current liabilities of discontinued operations	207		203
Net assets	$	12,625	$	(393	)

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

	Three Months Ended   March 31,
	2018			2019
Net revenue	$	6,243		$	8
Discontinued operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	12,710			903
Depreciation and amortization	1,957			208
Stock-based compensation	7			—
Impairment on long-lived assets	37,973			10,016
Net gain on sale and retirement of assets	(312		)	(1,438		)
Discontinued operating loss	(46,092		)	(9,681		)
Other expenses:
Interest expense, net	1			—
Other income, net	(12		)	—
Loss from discontinued operations before income taxes	(46,103		)	(9,681		)
Benefit for income taxes	(16,047		)	(2,517		)
Net loss from discontinued operations, net of income taxes	$	(30,056	)	$	(7,164	)

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Net (Loss) Income Per Common Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Net (Loss) Income Per Common Share

Net (Loss) Income Per Common Share

The following table sets forth the computations of basic and diluted net (loss) income per share for the three months ended March 31, 2018 and 2019 (in thousands, except per share data).

	Three Months Ended   March 31,
	2018			2019
Numerator:
Net income from continuing operations	$	3,467		$	2,374
Net loss from discontinued operations, net of income taxes	(30,056		)	(7,164		)
Net loss	$	(26,589	)	$	(4,790	)
Denominator:
Weighted average shares of common stock outstanding	18,478			18,478
Effect of dilutive common stock equivalents	8,978			8,978
Weighted average diluted common shares outstanding	27,456			27,456
Basic income (loss) per share:
Continuing operations	$	0.19		$	0.13
Discontinued operations	(1.63		)	(0.39		)
Diluted income (loss) per share:
Continuing operations	$	0.13		$	0.09
Discontinued operations	(1.09		)	(0.26		)

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Subsequent Events

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Dividend

On May 6, 2019 the board of directors approved a dividend of $0.075 per share. The dividend will be paid to holders of record as of June 28, 2019. The estimated $2.1 million dividend will be paid on August 15, 2019.

Amendment to Revolving Credit Facility

On April 30, 2019, the Company entered into an amendment under its existing credit agreement to, among other things, extend the maturity date of the existing revolving credit facility by two years to April 1, 2022, coterminous with the Term Loan maturity date (with a springing maturity six months inside of the maturity date of the Term Loan) and to amend certain asset sale provisions.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In January 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-01, Leases (Topic 842): Codification Improvements. This new guidance includes a codification improvement to the transition guidance in ASC 842 to clarify that entities adopting ASC 842 do not need to provide interim-period disclosures required by ASC 250, which states in the fiscal year in which a new accounting principle is adopted, financial information reported for interim periods after the date of adoption shall disclose the effect of the change on income from continuing operations, net income (or other appropriate captions of changes in the applicable net assets or performance indicator), and related per-share amounts, if applicable, for those post-change interim periods. Accordingly, interim disclosures about the effect on income in the year of adoption of ASC 842 are excluded from the required disclosures in transition, in a manner similar to the annual disclosures in ASC 250. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company does not believe ASU 2019-01 will have an impact on its consolidated financial statements.

Segment Reporting

Segment ReportingOperating segments are organized internally by type of products and services provided.  On January 2, 2019, the Company announced that its former Co-Chief Executive Officer (“CEO”) Dhruv Prasad resigned and that its other Co-CEO Bill Wilson would become the Company’s sole CEO.  As a result of these organization changes, Bill Wilson also became the Company’s Chief Operating Decision Maker (“CODM”).  Based on the information reviewed by Mr. Wilson in his capacity as CODM, the Company has identified three reportable operating segments, which are Advertising, which includes broadcast and digital advertising products and solutions, Townsquare Interactive, which is our digital marketing solutions business and Live Events, which is comprised of the Company’s live events, including concerts, expositions and other experiential events.  The Company has concluded that each of these operating segments shall be presented separately. Prior year segment reporting has been restated to conform with the current year presentation.  

Leases

Leases

In February 2016, the FASB issued 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 ("ROU") 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 ASC Topic 840. The standard is effective

for fiscal years beginning after December 15, 2018, and allows a number of practical expedients that the Company has elected to apply. The guidance ASU 2018-11, Leases (Topic 842): Targeted Improvements, which amends ASC 842 provides entities with an optional transition method for adopting the new lease standard by allowing entities to apply the new guidance at the adoption date by recognizing a cumulative-effect adjustment to the opening balance of retained earnings and not to restate comparative periods presented. The Company adopted the standard using the optional transition method as of January 1, 2019, using the package of practical expedients as well as several other permitted practical expedients that allow for a more simplified transition. Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. As a result of the adoption of the new lease accounting guidance, the Company recognized at adoption (a) a lease liability of approximately $48.4 million, which represents the present value of the remaining lease payments, discounted at a weighted average discount rate of 7.04%, and (b) a ROU asset of approximately $45.4 million which represents the lease liability of $48.4 million adjusted for accrued rent of approximately $2.9 million. The Company recorded an adjustment of $0.8 million at the adoption date of January 1, 2019 to stockholders equity to properly account for the Company's operating lease ROU assets and operating lease liabilities. The most significant impact of this standard was the recognition of ROU assets and lease obligations for operating leases.

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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

	Three Months Ended March 31, 2018
	Advertising		Townsquare Interactive		Live Events		Total
Net Revenue (ex Political)	$	70,841	$	10,796	$	5,646	$	87,283
Political	700		—		—		700
Net Revenue	$	71,541	$	10,796	$	5,646	$	87,983

	Three Months Ended March 31, 2019
	Advertising		Townsquare Interactive		Live Events		Total
Net Revenue (ex Political)	$	74,017	$	14,208	$	5,159	$	93,384
Political	298		—		—		298
Net Revenue	$	74,315	$	14,208	$	5,159	$	93,682

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

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

	At Adoption January 1, 2018		March 31, 2018		December 31, 2018		March 31, 2019
Receivables	$	60,492	$	53,788	$	62,459	$	56,167
Short-term contract liabilities (deferred revenue)	$	7,992	$	7,973	$	7,922	$	8,726

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Acquisitions & Divestitures (Tables)

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Schedule of Purchase Price Allocation

The preliminary Princeton Acquisition purchase price allocation is shown in the following table (in thousands):

Prepaid and other current assets	$	256
FCC licenses	6,409
Property and equipment, net	976
Goodwill	9,915
Accounts payable and accrued expenses	(201		)
Total purchase price	$	17,355

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Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property and equipment consisted of the following (in thousands):

	December 31, 2018			March 31, 2019
Land and improvements	$	21,062		$	21,235
Buildings and leasehold improvements	43,525			44,801
Broadcast equipment	81,690			83,188
Computer and office equipment	14,801			16,104
Furniture and fixtures	15,789			16,273
Transportation equipment	16,899			17,512
Software development costs	21,332			22,521
Total property and equipment, gross	215,098			221,634
Less accumulated depreciation and amortization	(102,721		)	(108,863		)
Total property and equipment, net	$	112,377		$	112,771

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Indefinite-Lived and FInite-Lived Intangible Assets

Intangible assets consist of the following (in thousands):

	Estimated Useful Life	December 31, 2018		March 31, 2019
Intangible Assets:
FCC licenses	Indefinite	$	473,412	$	473,412
Customer and advertising relationships	10 years	6,540		6,540
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	3,196		2,761
Other intangibles	3 years	161		161
Total		485,756		485,321
Less: Accumulated amortization		(6,818)		(6,945		)
Net amount		$	478,938	$	478,376

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 March 31, 2019 is as follows (in thousands):

2019 (remainder)	$	673
2020	849
2021	840
2022	837
2023	626
Thereafter	1,139
	$	4,964

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Long-term Debt Instruments

Total debt outstanding is summarized as follows (in thousands):

	December 31, 2018			March 31, 2019
2023 Notes	$	278,148		$	278,148
Term Loans	282,332			282,332
Capitalized obligations	10			9
Debt before deferred financing costs	560,490			560,489
Deferred financing costs	(5,155		)	(4,779		)
Total debt	555,335			555,710
Less: current portion of long-term debt	(5		)	(5		)
Total long-term debt	$	555,330		$	555,705

Annual Maturities of Long-term Debt

Annual maturities of the Company's long-term debt as of March 31, 2019 are as follows (in thousands):

2019 (remainder)	$	4
2020	5
2021	—
2022	282,332
2023	278,148
Thereafter	—
	$	560,489

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Schedule of Stockholders Equity

The table below presents a summary, as of March 31, 2019, 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	14,313,844	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	27,939,495
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 three months ended March 31, 2019:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at January 1, 2019	9,688,424		$	8.23	6.15	$	—
Granted	—
Exercised	—
Forfeited	(161,148	)
Outstanding at March 31, 2019	9,527,276		$	8.26	5.85	$	—

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Accrued Expenses and Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

	December 31, 2018		March 31, 2019
Accrued compensation and benefits	$	14,863	$	4,958
Accrued professional fees	1,449		809
Accrued commissions	1,980		2,007
Accrued taxes	2,686		2,004
Accrued music and FCC licensing	2,315		1,218
Accrued publisher fees	2,213		1,615
Accrued national representation fees	1,276		1,480
Due to sellers, business combinations	26		3
Deferred rent	2,139		—
Dividends payable	2,162		2,198
Accrued other	1,640		1,486
	$	32,749	$	17,778

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Lease and Other Commitments (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Consolidated Balance Sheet Impact

The below table summarizes the impact on the Company's Consolidated Balance Sheet at the adoption date of January 1, 2019 and as of March 31, 2019, respectively (dollars in thousands):

	At Adoption January 1, 2019			March 31, 2019
Operating lease right-of-use-assets	$	45,434		$	45,724
Total operating lease right-of-use-assets	$	45,434		$	45,724
Deferred rent	(2,111		)	—
Operating lease liabilities	48,361			48,765
Retained deficit	(816		)	—
Total liabilities and stockholders' equity	$	45,434		$	48,765
Weighted Average Remaining Lease Term
Operating leases	6.36 years			6.26 years
Weighted Average Discount Rate
Operating leases	7.04		%	7.05		%

Operating Lease Maturity

Maturities of lease liabilities for operating leases are as follows as of March 31, 2019 (in thousands):

2019 (remainder)	$	8,700
2020	9,610
2021	7,765
2022	6,881
2023	5,635
Thereafter	14,453
Total lease payments	53,044
Less: imputed interest	(10,842		)
Add: deferred gain sale leaseback transaction	6,563
Total	$	48,765

Components of Lease Expense

Supplemental cash flow information related to leases for the three months ended March 31, 2019 are as follows (dollars in thousands):

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,874
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,287

The components of lease expense recorded to operating and corporate expense for the three months ended March 31, 2019 are as follows (dollars in thousands):

Operating lease cost	$	2,950
Short-term lease cost	15
Variable lease cost	9
Total lease cost	$	2,974

Schedule of Supplemental Cash Flow Related to Leases

Supplemental cash flow information related to leases for the three months ended March 31, 2019 are as follows (dollars in thousands):

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,874
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,287

The components of lease expense recorded to operating and corporate expense for the three months ended March 31, 2019 are as follows (dollars in thousands):

Operating lease cost	$	2,950
Short-term lease cost	15
Variable lease cost	9
Total lease cost	$	2,974

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table presents the Company's reportable segment results for the three months ended March 31, 2018 (in thousands):    

	Advertising		Townsquare Interactive		Live Events		Corporate and Other Reconciling Items			Total
Net revenue	$	71,541	$	10,796	$	5,646	$	—		$	87,983
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	52,650		7,545		4,161		—			64,356
Depreciation and amortization	2,670		115		136		1,462			4,383
Corporate expenses	—		—		—		5,649			5,649
Stock-based compensation	18		7		11		154			190
Transaction costs	—		—		—		159			159
Business realignment costs	—		—		—		—			—
Net gain on sale and retirement of assets	—		—		—		(10		)	(10		)
Operating income (loss)	$	16,203	$	3,129	$	1,338	$	(7,414	)	$	13,256
Capital expenditures	$	2,863	$	8	$	2	$	1,547		$	4,420

The following table presents the Company's reportable segment results for the three months ended March 31, 2019 (in thousands):

	Advertising		Townsquare Interactive		Live Events		Corporate and Other Reconciling Items			Total
Net revenue	$	74,315	$	14,208	$	5,159	$	—		$	93,682
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	54,889		9,827		3,913		—			68,629
Depreciation and amortization	3,098		121		145		3,144			6,508
Corporate expenses	—		—		—		5,587			5,587
Stock-based compensation	92		35		23		726			876
Transaction costs	—		—		—		148			148
Business realignment costs	—		—		—		4			4
Net loss on sale and retirement of assets	—		—		—		19			19
Operating income (loss)	$	16,236	$	4,225	$	1,078	$	(9,628	)	$	11,911
Capital expenditures	$	3,378	$	73	$	1	$	1,581		$	5,033

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Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Schedule of amounts related to discontinued operations

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

	Three Months Ended   March 31,
	2018			2019
Net revenue	$	6,243		$	8
Discontinued operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	12,710			903
Depreciation and amortization	1,957			208
Stock-based compensation	7			—
Impairment on long-lived assets	37,973			10,016
Net gain on sale and retirement of assets	(312		)	(1,438		)
Discontinued operating loss	(46,092		)	(9,681		)
Other expenses:
Interest expense, net	1			—
Other income, net	(12		)	—
Loss from discontinued operations before income taxes	(46,103		)	(9,681		)
Benefit for income taxes	(16,047		)	(2,517		)
Net loss from discontinued operations, net of income taxes	$	(30,056	)	$	(7,164	)

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, 2018		March 31, 2019
Accounts receivable	$	9	$	4
Prepaid expenses and other current assets	435		1,085
Property and equipment, net	1,874		1,759
Intangible assets, net	3,843		3,751
Goodwill	13,602		3,586
Current assets held for sale	19,763		10,185
Accounts payable	89		58
Deferred revenue	6,688		10,233
Accrued expenses and other current liabilities	154		84
Current liabilities held for sale	6,931		10,375
Accrued expenses and other current liabilities	207		203
Current liabilities of discontinued operations	207		203
Net assets	$	12,625	$	(393	)

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Net (Loss) Income Per Common Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Schedule of Unaudited Pro Forma Earnings (Loss) Per Share

The following table sets forth the computations of basic and diluted net (loss) income per share for the three months ended March 31, 2018 and 2019 (in thousands, except per share data).

	Three Months Ended   March 31,
	2018			2019
Numerator:
Net income from continuing operations	$	3,467		$	2,374
Net loss from discontinued operations, net of income taxes	(30,056		)	(7,164		)
Net loss	$	(26,589	)	$	(4,790	)
Denominator:
Weighted average shares of common stock outstanding	18,478			18,478
Effect of dilutive common stock equivalents	8,978			8,978
Weighted average diluted common shares outstanding	27,456			27,456
Basic income (loss) per share:
Continuing operations	$	0.19		$	0.13
Discontinued operations	(1.63		)	(0.39		)
Diluted income (loss) per share:
Continuing operations	$	0.13		$	0.09
Discontinued operations	(1.09		)	(0.26		)

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Organization and Basis of Presentation - Nature of Business (Details)	Mar. 31, 2019 radio_station market event website
Organization and Basis of Presentation [Line Items]
Number of radio stations | radio_station	321
Number of local websites (more than) | website	330
Number of small and medium sized markets in which entity operates	16,200
Number of live events | event	200
United States
Organization and Basis of Presentation [Line Items]
Number of local markets	67

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Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands		3 Months Ended
		Mar. 31, 2019 USD ($) segment	Jan. 01, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of reportable segments | segment		3
Number of operating segments | segment		3
Operating lease liabilities		$ 48,765
Weighted average discount rate (as a percent)		7.05%	7.04%
Right-of-use asset		$ 45,724
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liabilities		48,765	$ 48,361
Weighted average discount rate (as a percent)			7.04%
Right-of-use asset		$ 45,724	$ 45,434
Accrued rent			2,900
Adjustment	[1]		$ 816

[1] See Note 13

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Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Net revenue	$ 93,682	$ 87,983
Advertising
Disaggregation of Revenue [Line Items]
Net revenue	74,315	71,541
Townsquare Interactive
Disaggregation of Revenue [Line Items]
Net revenue	14,208	10,796
Live Events
Disaggregation of Revenue [Line Items]
Net revenue	5,159	5,646
Excluding political
Disaggregation of Revenue [Line Items]
Net revenue	93,384	87,283
Excluding political | Advertising
Disaggregation of Revenue [Line Items]
Net revenue	74,017	70,841
Excluding political | Townsquare Interactive
Disaggregation of Revenue [Line Items]
Net revenue	14,208	10,796
Excluding political | Live Events
Disaggregation of Revenue [Line Items]
Net revenue	5,159	5,646
Political
Disaggregation of Revenue [Line Items]
Net revenue	298	700
Political | Advertising
Disaggregation of Revenue [Line Items]
Net revenue	298	700
Political | Townsquare Interactive
Disaggregation of Revenue [Line Items]
Net revenue	0	0
Political | Live Events
Disaggregation of Revenue [Line Items]
Net revenue	$ 0	$ 0

XML

Revenue Recognition - Summary of Receivables, Contract Assets and Contract Liabilities from Contracts (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Jan. 01, 2018
Revenue from Contract with Customer [Abstract]
Receivables	$ 56,167	$ 62,459	$ 53,788	$ 60,492
Short-term contract liabilities (deferred revenue)	$ 8,726	$ 7,922	$ 7,973	$ 7,992

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Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jan. 01, 2018
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 6.2	$ 5.4
Deferred costs			$ 3.0	$ 2.3
Recognized amortization	$ 0.5	$ 0.6

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Acquisitions & Divestitures - Additional Details (Details) $ in Thousands			3 Months Ended
	Mar. 18, 2019 USD ($)	Jul. 02, 2018 USD ($) radio_station	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Goodwill			$ 226,981	$ 226,981
Connoisseur Media, LLC
Business Acquisition [Line Items]
Radio stations acquired | radio_station		3
Payments to acquire businesses, gross of working capital adjustment		$ 17,400
Working capital adjustment		100
Goodwill		9,915
FCC licenses | Connoisseur Media, LLC
Business Acquisition [Line Items]
FCC licenses		$ 6,400
Arizona Bridal Shows
Business Acquisition [Line Items]
Proceeds from sale	$ 2,000
Gain on sale			$ 1,400

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Acquisitions & Divestitures - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Jul. 02, 2018
Business Acquisition [Line Items]
Goodwill	$ 226,981	$ 226,981
Connoisseur Media, LLC
Business Acquisition [Line Items]
Prepaid and other current assets			$ 256
Property and equipment, net			976
Goodwill			9,915
Accounts payable and accrued expenses			(201)
Total purchase price			17,355
FCC licenses | Connoisseur Media, LLC
Business Acquisition [Line Items]
FCC licenses			$ 6,409

XML

Investments - Narrative (Details) - USD ($)	Mar. 31, 2019	Mar. 31, 2018
Equity Securities without Readily Determinable Fair Value [Line Items]
Investments		$ 0
Convertible Note Receivable Investment
Equity Securities without Readily Determinable Fair Value [Line Items]
Investments	$ 300,000
Small Business
Equity Securities without Readily Determinable Fair Value [Line Items]
Investments	$ 2,000,000.0

XML

Property and Equipment - Schedule of Physical Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment	$ 221,634	$ 215,098
Less accumulated depreciation and amortization	(108,863)	(102,721)
Total property and equipment, net	112,771	112,377
Land and improvements
Property, Plant and Equipment [Line Items]
Property and equipment	21,235	21,062
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	44,801	43,525
Broadcast equipment
Property, Plant and Equipment [Line Items]
Property and equipment	83,188	81,690
Computer and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment	16,104	14,801
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	16,273	15,789
Transportation equipment
Property, Plant and Equipment [Line Items]
Property and equipment	17,512	16,899
Software development costs
Property, Plant and Equipment [Line Items]
Property and equipment	$ 22,521	$ 21,332

XML

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 6.3	$ 4.1

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Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Indefinite-lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 0.2	$ 0.3
FCC licenses
Indefinite-lived Intangible Assets [Line Items]
FCC license renewal period	8 years
Live Events
Indefinite-lived Intangible Assets [Line Items]
Impairment loss	$ 10.0

XML

Goodwill and Other Intangible Assets - Schedule of Finite Lived and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Indefinite-lived Intangible Assets [Line Items]
Total	$ 485,321	$ 485,756
Less: Accumulated amortization	(6,945)	(6,818)
Net amount	478,376	478,938
FCC licenses
Indefinite-lived Intangible Assets [Line Items]
FCC licenses	$ 473,412	473,412
Customer and advertising relationships
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	10 years
Intangible assets	$ 6,540	6,540
Leasehold interests
Finite-Lived Intangible Assets [Line Items]
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]
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]
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]
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]
Intangible asset useful life	15 years
Intangible assets	$ 2,761	3,196
Other intangibles
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	3 years
Intangible assets	$ 161	$ 161

XML

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019 (remainder)	$ 673
2020	849
2021	840
2022	837
2023	626
Thereafter	1,139
Total	$ 4,964

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Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Capitalized obligations		$ 10
Capitalized obligations	$ 9
Debt before deferred financing costs	560,489	560,490
Deferred financing costs	(4,779)	(5,155)
Total debt	555,710	555,335
Less: current portion of long-term debt	(5)	(5)
Total long-term debt	555,705	555,330
Unsecured Senior Note Due 2023
Debt Instrument [Line Items]
Long-term debt, gross	278,148	278,148
Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 282,332	$ 282,332

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Long-Term Debt - Narrative (Details) - USD ($)			3 Months Ended	12 Months Ended
	Apr. 30, 2019	Apr. 01, 2015	Mar. 31, 2019	Dec. 31, 2018	Sep. 01, 2015
Debt Instrument [Line Items]
Outstanding borrowings			$ 560,489,000
Unsecured Senior Note Due 2023
Debt Instrument [Line Items]
Repurchased face amount				$ 1,900,000
Write off of deferred debt issuance cost				40,000.00
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
Term Loan | Seven Year Term Loan Facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			3.00%
Variable rate floor			5.50%
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
Outstanding borrowings			$ 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 | Unsecured Senior Note Due 2023
Debt Instrument [Line Items]
Debt amount		$ 300,000,000.0
Stated interest rate		6.50%
Debt fair value			$ 267,200,000
New Term Loan | Unsecured Senior Note Due 2023
Debt Instrument [Line Items]
Debt fair value			$ 277,700,000
Other (Income) Expense, net | Unsecured Senior Note Due 2023
Debt Instrument [Line Items]
Gain on repurchase of debt				$ 100,000
Subsequent event | Revolving Credit Facility | Five Year Revolving Credit Facility
Debt Instrument [Line Items]
Maturity date extension	2 years

XML

Long-Term Debt - Schedule of Maturities of Long Term Debt (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Debt Disclosure [Abstract]
2019 (remainder)	$ 4
2020	5
2021	0
2022	282,332
2023	278,148
Thereafter	0
Long-term debt	$ 560,489

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Stockholders' Equity - Schedule of Stockholders Equity (Details)	3 Months Ended
	Mar. 31, 2019 USD ($) vote / shares $ / shares shares	Dec. 31, 2018 $ / shares shares
Class of Stock [Line Items]
Common shares authorized (in shares)	400,000,000
Total common stock and warrants outstanding (in shares)	27,939,495
Warrants, number of shares exercisable	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 warrants)	8,977,676
Common Class A
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)	14,313,844	14,297,066
Number of votes per share | vote / shares	1
Common Class B
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	3,011,634
Number of votes per share | vote / shares	10
Conversion ratio into common stock	1
Common Class C
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
Conversion ratio into common stock	1

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Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) $ / shares shares	Mar. 31, 2018 USD ($)	Dec. 31, 2018 $ / shares
Class of Stock [Line Items]
Weighted average grant date fair value (in dollars per share) | $ / shares	$ 8.26		$ 8.23
Stock-based compensation expense | $	$ 876	$ 190
2014 Omnibus Incentive Plan
Class of Stock [Line Items]
Shares authorized to be granted (in shares)	12,000,000
Shares available for grant (in shares)	1,946,291
Minimum
Class of Stock [Line Items]
Options outstanding, exercise price (in dollars per share) | $ / shares	$ 6.25
Maximum
Class of Stock [Line Items]
Options outstanding, exercise price (in dollars per share) | $ / shares	$ 9.63
Common Class A
Class of Stock [Line Items]
Shares issuable upon exercise of stock options (in shares)	4,976,285
Common Class B
Class of Stock [Line Items]
Shares issuable upon exercise of stock options (in shares)	4,550,991
Common stock, conversion ratio	1
Preferred Stock
Class of Stock [Line Items]
Preferred shares authorized (in shares)	50,000,000
Common Class C
Class of Stock [Line Items]
Common stock, conversion ratio	1
Restricted Stock
Class of Stock [Line Items]
Shares outstanding (in shares)	483,355
Shares issued (in shares)	16,778
Fair value (in dollars per share) | $ / shares	$ 5.96
Weighted average grant date fair value (in dollars per share) | $ / shares	$ 6.56
Unrecognized stock-based compensation expense | $	$ 2,400
Unrecognized share-based compensation expense recognition period	3 years
Restricted Stock | Minimum
Class of Stock [Line Items]
Award vesting period	1 year
Restricted Stock | Maximum
Class of Stock [Line Items]
Award vesting period	5 years
Stock Option
Class of Stock [Line Items]
Unrecognized stock-based compensation expense | $	$ 3,800
Unrecognized share-based compensation expense recognition period	2 years 9 months 18 days

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Stockholders' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Shares
Outstanding, beginning balance (in shares)	9,688,424
Granted (in shares)	0
Exercised (in shares)	0
Forfeited (in shares)	(161,148)
Outstanding, ending balance (in shares)	9,527,276	9,688,424
Weighted Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 8.23
Granted (in shares)
Exercised (in dollars per share)
Forfeited (in dollars per share)
Outstanding, ending balance (in dollars per share)	$ 8.26	$ 8.23
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Life (years)	5 years 10 months 6 days	6 years 1 month 24 days
Aggregate Intrinsic Value	$ 0	$ 0

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Income Taxes Narrative (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate (percentage)	27.70%	27.70%
Federal statutory income tax rate (percentage)	21.00%

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Accrued Expenses and Other Current Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 4,958	$ 14,863
Accrued professional fees	809	1,449
Accrued commissions	2,007	1,980
Accrued taxes	2,004	2,686
Accrued music and FCC licensing	1,218	2,315
Accrued publisher fees	1,615	2,213
Accrued national representation fees	1,480	1,276
Due to sellers, business combinations	3	26
Deferred rent	0	2,139
Dividends declared during the period	2,198	2,162
Accrued other	1,486	1,640
Accrued expenses and other current liabilities	$ 17,778	$ 32,749

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Lease and Other Commitments - Narrative (Details)	1 Months Ended
	Sep. 30, 2015 USD ($) renewal_option site tower $ / site	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 01, 2015 market
Lessee, Lease, Description [Line Items]
Deferred gain		$ 6,563,000
Operating lease, lease not yet commenced		$ 2,100,000
Term of contract, lease not yet commenced		20 years
Rating Service Agreement with Nielsen
Lessee, Lease, Description [Line Items]
Remaining minimum amount committed		$ 15,600,000
Other Broadcasting Services
Lessee, Lease, Description [Line Items]
Remaining minimum amount committed		1,100,000
Business Management Platform
Lessee, Lease, Description [Line Items]
Remaining minimum amount committed		$ 10,000,000.0
Tower Sale
Lessee, Lease, Description [Line Items]
Number of radio towers sold | tower	43
Number of radio tower sites sold | site	41
Number of local markets | market				28
Term of lease				35 years
Initial term of lease	20 years
Number of renewal options | renewal_option	3
Renewal term	5 years
Rent expense	$ 41
Operating lease expense per site per annum | $ / site	1
Deferred gain			$ 6,600,000

XML

Lease and Other Commitments - Consolidated Balance Sheet Impact (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 45,724
Operating lease liabilities	48,765
Retained deficit	(33,883)		$ (25,735)
Total liabilities and stockholders’ equity	$ 1,013,231		$ 987,267
Weighted Average Remaining Lease Term
Operating leases	6 years 3 months 3 days	6 years 4 months 9 days
Weighted Average Discount Rate
Operating leases	7.05%	7.04%
ASU 2016-02
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 45,724	$ 45,434
Deferred rent	0	(2,111)
Operating lease liabilities	48,765	48,361
Retained deficit	0	(816)
Total liabilities and stockholders’ equity	$ 48,765	$ 45,434
Weighted Average Discount Rate
Operating leases		7.04%

XML

Lease and Other Commitments - Operating Lease Maturity (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Leases [Abstract]
2019 (remainder)	$ 8,700
2020	9,610
2021	7,765
2022	6,881
2023	5,635
Thereafter	14,453
Total lease payments	53,044
Less: imputed interest	(10,842)
Add: deferred gain sale leaseback transaction	6,563
Total	$ 48,765

XML

Lease and Other Commitments - Components of Lease Expense (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 2,950
Short-term lease cost	15
Variable lease cost	9
Total lease cost	$ 2,974

XML

Lease and Other Commitments - Schedule of Supplemental Cash Flow Related to Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 2,874
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 2,287

XML

Segment Reporting - Schedule of Reportable Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Net revenue	$ 93,682	$ 87,983
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	68,629	64,356
Depreciation and amortization	6,508	4,383
Corporate expenses	5,587	5,649
Stock-based compensation	876	190
Transaction costs	148	159
Business realignment costs	4	0
Net (gain) loss on sale and retirement of assets	19	(10)
Operating income	11,911	13,256
Capital expenditures	5,033	4,420
Operating segments | Advertising
Segment Reporting Information [Line Items]
Net revenue	74,315	71,541
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	54,889	52,650
Depreciation and amortization	3,098	2,670
Corporate expenses	0	0
Stock-based compensation	92	18
Transaction costs	0	0
Business realignment costs	0	0
Net (gain) loss on sale and retirement of assets	0	0
Operating income	16,236	16,203
Capital expenditures	3,378	2,863
Operating segments | Townsquare Interactive
Segment Reporting Information [Line Items]
Net revenue	14,208	10,796
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	9,827	7,545
Depreciation and amortization	121	115
Corporate expenses	0	0
Stock-based compensation	35	7
Transaction costs	0	0
Business realignment costs	0	0
Net (gain) loss on sale and retirement of assets	0	0
Operating income	4,225	3,129
Capital expenditures	73	8
Operating segments | Live Events
Segment Reporting Information [Line Items]
Net revenue	5,159	5,646
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	3,913	4,161
Depreciation and amortization	145	136
Corporate expenses	0	0
Stock-based compensation	23	11
Transaction costs	0	0
Business realignment costs	0	0
Net (gain) loss on sale and retirement of assets	0	0
Operating income	1,078	1,338
Capital expenditures	1	2
Corporate and Other Reconciling Items
Segment Reporting Information [Line Items]
Net revenue	0	0
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	0	0
Depreciation and amortization	3,144	1,462
Corporate expenses	5,587	5,649
Stock-based compensation	726	154
Transaction costs	148	159
Business realignment costs	4	0
Net (gain) loss on sale and retirement of assets	19	(10)
Operating income	(9,628)	(7,414)
Capital expenditures	$ 1,581	$ 1,547

XML

Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended
	Jun. 29, 2018	May 24, 2018	Mar. 31, 2019	Mar. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Payments to acquire business			$ 3	$ 48
Taste Of Country Productions LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Minority interest percentage	30.00%
Payments to acquire business	$ 1,300
Discontinued Operations, Disposed of by Sale | Heartland Group, LLC And Subsidiary NAME
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration received		$ 23,500
Discontinued Operations, Disposed of by Sale | NAME
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of business		$ (1,800)
Discontinued Operations, Disposed of by Sale | Mountain Jam
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of business	$ 1,200
Discontinued Operations, Disposed of by Sale | Mountain Jam | Mountain Jam, LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Controlling interest percentage	70.00%

XML

Discontinued Operations - Components of Assets and Liabilities Related to Discontinued Opertations (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Current assets held for sale	$ 10,185	$ 19,763
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net assets	(393)	12,625
Discontinued operations, held for sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accounts receivable	4	9
Prepaid expenses and other current assets	1,085	435
Property and equipment, net	1,759	1,874
Intangible assets, net	3,751	3,843
Goodwill	3,586	13,602
Current assets held for sale	10,185	19,763
Accounts payable	58	89
Deferred revenue	10,233	6,688
Accrued expenses and other current liabilities	84	154
Current liabilities	10,375	6,931
Discontinued operations, excluding held for sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accrued expenses and other current liabilities	203	207
Current liabilities	$ 203	$ 207

XML

Discontinued Operations - Components of Operations Related to Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Discontinued operating costs and expenses:
Net loss from discontinued operations, net of income taxes	$ (7,164)	$ (30,056)
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue	8	6,243
Discontinued operating costs and expenses:
Direct operating expenses, excluding depreciation, amortization and stock-based compensation	903	12,710
Depreciation and amortization	208	1,957
Stock-based compensation	0	7
Impairment on long-lived assets	10,016	37,973
Net gain on sale and retirement of assets	(1,438)	(312)
Discontinued operating loss	(9,681)	(46,092)
Interest expense, net	0	1
Other income, net	0	(12)
Loss from discontinued operations before income taxes	(9,681)	(46,103)
Benefit for income taxes	(2,517)	(16,047)
Net loss from discontinued operations, net of income taxes	$ (7,164)	$ (30,056)

XML

Net (Loss) Income 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
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net income from continuing operations	$ 2,374	$ 3,467
Net loss from discontinued operations, net of income taxes	(7,164)	(30,056)
Net loss	$ (4,790)	$ (26,589)
Denominator:
Weighted average shares of common stock outstanding (in shares)	18,478	18,478
Effect of dilutive common stock equivalents (in shares)	8,978	8,978
Weighted average diluted common shares outstanding (in shares)	27,456	27,456
Basic income (loss) per share:
Continuing operations (in dollars per share)	$ 0.13	$ 0.19
Discontinued operations (in dollars per share)	(0.39)	(1.63)
Diluted income (loss) per share:
Continuing operations (in dollars per share)	0.09	0.13
Discontinued operations (in dollars per share)	$ (0.26)	$ (1.09)

XML

Subsequent Events - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended
	May 06, 2019	Apr. 30, 2019	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Subsequent Event [Line Items]
Dividends declared (in usd per share)			$ 0.075	$ 0.075
Dividends declared during the period			$ 2,198		$ 2,162
Subsequent event
Subsequent Event [Line Items]
Dividends declared (in usd per share)	$ 0.075
Dividends declared during the period	$ 2,100
Five Year Revolving Credit Facility | Revolving Credit Facility | Subsequent event
Subsequent Event [Line Items]
Maturity date extension		2 years

XML

Label	Element	Value
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 383,351,000
Noncontrolling Interest [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	1,121,000
Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	367,041,000
Retained Earnings [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	15,536,000
Common Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	185,000
AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(532,000)
Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	2,271,000	[1]
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	2,271,000	[1]
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (816,000)	[2]

[1] See Note 3

[2] See Note 13