Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 6-May-15 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BBGI | |
Entity Registrant Name | BEASLEY BROADCAST GROUP INC | |
Entity Central Index Key | 1099160 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,580,768 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 16,662,743 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $12,346,921 | $14,259,441 |
Accounts receivable, less allowance for doubtful accounts of $544,932 in 2014 and $544,549 in 2015 | 17,620,616 | 17,637,686 |
Prepaid expenses | 2,131,209 | 636,552 |
Deferred tax assets | 176,872 | 220,316 |
Other current assets | 2,016,504 | 2,784,210 |
Total current assets | 34,292,122 | 35,538,205 |
Notes receivable from related parties | 1,655,527 | 1,748,092 |
Property and equipment, net | 28,013,991 | 28,254,202 |
FCC broadcasting licenses | 234,518,930 | 234,328,330 |
Goodwill | 8,857,516 | 8,857,516 |
Other intangibles, net | 949,962 | 1,358,026 |
Other assets | 5,833,751 | 5,882,818 |
Total assets | 314,121,799 | 315,967,189 |
Current liabilities: | ||
Current portion of long-term debt | 2,890,625 | 3,112,500 |
Accounts payable | 853,527 | 1,120,434 |
Other current liabilities | 8,546,196 | 9,794,234 |
Total current liabilities | 12,290,348 | 14,027,168 |
Long-term debt, net of current portion | 93,303,125 | 94,581,250 |
Deferred tax liabilities | 76,918,423 | 75,996,813 |
Other long-term liabilities | 789,275 | 819,670 |
Total liabilities | 183,301,171 | 185,424,901 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; none issued | ||
Additional paid-in capital | 118,754,061 | 118,535,400 |
Treasury stock, Class A common stock; 2,830,904 in 2014; 2,878,379 shares in 2015 | -15,345,044 | -15,107,464 |
Retained earnings | 27,333,708 | 27,066,481 |
Accumulated other comprehensive income | 51,780 | 21,933 |
Total stockholders' equity | 130,820,628 | 130,542,288 |
Total liabilities and stockholders' equity | 314,121,799 | 315,967,189 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 9,461 | 9,276 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | $16,662 | $16,662 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts | $544,549 | $544,932 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, Class A common stock shares | 2,878,379 | 2,830,904 |
Class A Common Stock [Member] | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 9,460,822 | 9,275,746 |
Common stock, shares outstanding | 6,582,443 | 6,444,842 |
Class B Common Stock [Member] | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 16,662,743 | 16,662,743 |
Common stock, shares outstanding | 16,662,743 | 16,662,743 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
Net revenue | $24,250,839 | $12,955,429 |
Operating expenses: | ||
Station operating expenses (including stock-based compensation of $77,143 in 2014 and $41,791 in 2015 and excluding depreciation and amortization shown separately below) | 17,813,948 | 9,607,617 |
Corporate general and administrative expenses (including stock-based compensation of $276,904 in 2014 and $328,091 in 2015) | 2,439,147 | 2,275,004 |
Radio station exchange transaction costs | 303,762 | |
Depreciation and amortization | 1,118,853 | 466,739 |
Total operating expenses | 21,675,710 | 12,349,360 |
Operating income | 2,575,129 | 606,069 |
Non-operating income (expense): | ||
Interest expense | -948,006 | -1,223,715 |
Other income (expense), net | 471,805 | 23,039 |
Income (loss) from continuing operations before income taxes | 2,098,928 | -594,607 |
Income tax expense | 800,544 | 921,110 |
Income (loss) from continuing operations | 1,298,384 | -1,515,717 |
Income from discontinued operations (net of income taxes) | 2,198,589 | |
Net income | 1,298,384 | 682,872 |
Other comprehensive income: | ||
Unrealized gain (loss) on securities (net of income tax benefit of $13,368 in 2014 and income tax expense of $18,441 in 2015) | 29,847 | -21,604 |
Comprehensive income | $1,328,231 | $661,268 |
Basic and diluted net income per share: | ||
Continuing operations | $0.06 | ($0.07) |
Discontinued operations | $0.10 | |
Net income per share | $0.06 | $0.03 |
Dividends declared per common share | $0.05 | $0.05 |
Weighted average shares outstanding: | ||
Basic | 22,880,681 | 22,782,661 |
Diluted | 22,906,828 | 22,843,287 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock-based compensation | $369,882 | $356,502 |
Unrealized gain (loss) on securities, income tax expense (benefit) | 18,441 | -13,368 |
Station Operating Expenses [Member] | ||
Stock-based compensation | 41,791 | 77,143 |
Corporate General and Administrative Expenses [Member] | ||
Stock-based compensation | $328,091 | $276,904 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $1,298,384 | $682,872 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 369,882 | 356,502 |
Provision for bad debts | 62,131 | 155,649 |
Depreciation and amortization | 1,118,853 | 606,562 |
Amortization of loan fees | 84,366 | 104,526 |
Deferred income taxes | 994,901 | 2,216,473 |
Change in operating assets and liabilities: | ||
Accounts receivable | -45,061 | 1,354,189 |
Prepaid expenses | -1,494,657 | -1,097,448 |
Other assets | 820,121 | 28,050 |
Accounts payable | -266,907 | -188,102 |
Other liabilities | -1,398,719 | -133,513 |
Other operating activities | 21,022 | 128,581 |
Net cash provided by operating activities | 1,564,316 | 4,214,341 |
Cash flows from investing activities: | ||
Capital expenditures | -462,557 | -1,188,683 |
Payments for translator licenses | -190,600 | -65,000 |
Repayment of notes receivable from related parties | 92,565 | 98,461 |
Net cash used in investing activities | -560,592 | -1,155,222 |
Cash flows from financing activities: | ||
Principal payments on indebtedness | -1,500,000 | -3,375,000 |
Tax benefit from vesting of restricted stock | -151,036 | 111,114 |
Dividends paid | -1,027,628 | -1,023,539 |
Payments for treasury stock | -237,580 | -351,719 |
Net cash used in financing activities | -2,916,244 | -4,639,144 |
Net decrease in cash and cash equivalents | -1,912,520 | -1,580,025 |
Cash and cash equivalents at beginning of period | 14,259,441 | 14,299,013 |
Cash and cash equivalents at end of period | 12,346,921 | 12,718,988 |
Cash paid for interest | 863,640 | 1,119,189 |
Cash paid for income taxes | 2,229,471 | 130,095 |
Supplement disclosure of non-cash investing and financing activities: | ||
Property and equipment acquired through placement of advertising airtime | 8,021 | |
Dividends declared but unpaid | $1,031,157 | $1,026,637 |
Interim_Financial_Statements
Interim Financial Statements | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Interim Financial Statements | -1 | Interim Financial Statements |
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of Beasley Broadcast Group, Inc. and its subsidiaries (the “Company”) included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the financial statements reflect all adjustments necessary for a fair statement of the financial position and results of operations for the interim periods presented and all such adjustments are of a normal and recurring nature. The Company’s results are subject to seasonal fluctuations therefore the results shown on an interim basis are not necessarily indicative of results for the full year. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended | ||
Mar. 31, 2015 | |||
Accounting Changes and Error Corrections [Abstract] | |||
Recent Accounting Pronouncements | (2) Recent Accounting Pronouncements | ||
In April 2015, the FASB issued guidance to simplify presentation of debt issuance costs. The guidance requires debt issuance related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. Upon adoption of the guidance, the Company will present loan fees as a deduction from long-term debt in the balance sheet. Loan fees totaled $1.5 million as of March 31, 2015. | |||
In May 2014, the FASB issued guidance to clarify the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a comprehensive framework for revenue recognition that supersedes current general revenue guidance and most industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. An entity should apply the guidance either retrospectively to each prior reporting period presented or retrospectively with the cumulative adjustment at the date of the initial application. The new guidance was originally set to become effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early adoption was not permitted. However, on April 29, 2015, the FASB issued for public comment a proposed update that would defer the effective date of the new guidance to annual reporting periods beginning after December 15, 2017, but would allow early adoption for annual reporting periods beginning after December 15, 2016. The Company has not determined the impact of adoption on its financial statements. | |||
In April 2014, the FASB issued guidance that changes the requirements for reporting discontinued operations. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: | |||
1 | The component of an entity or group of components of an entity meets the criteria to be classified as held for sale. | ||
2 | The component of an entity or group of components of an entity is disposed of by sale. | ||
3 | The component of an entity or group of components of an entity is disposed of other than by sale. | ||
The guidance also requires additional disclosures about discontinued operations. The new guidance is effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company early adopted the new guidance in the third quarter of 2014. See Note 3 for discontinued operations reported under the new guidance. |
Asset_Exchange
Asset Exchange | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Asset Exchange | -3 | Asset Exchange | |||
On December 1, 2014, the Company completed an asset exchange with CBS Radio Stations, Inc. (“CBS Radio”) under which the Company agreed to exchange all of the assets used or useful in the operations of WRDW-FM and WXTU-FM in Philadelphia, PA and WKIS-FM, WPOW-FM and WQAM-AM in Miami, FL previously owned and operated by the Company for all of the assets used or useful in the operations of WIP-AM in Philadelphia, PA, WHFS-AM, WHFS-FM, WLLD-FM, WQYK-FM, WRBQ-FM and WYUU-FM in Tampa, FL and WBAV-FM, WBCN-AM, WFNZ-AM, WKQC-FM, WNKS-FM, WPEG-FM and WSOC-FM in Charlotte, NC previously owned and operated by CBS Radio. The asset exchange substantially broadened and diversified the Company’s local radio broadcasting platform and revenue base with fourteen new stations that are geographically complementary to the Company’s ongoing operations, while also presenting financial and operating synergies with the Company’s ongoing station portfolio and digital operations. | |||||
The following pro forma information for the three months ended March 31, 2014 assumes that the asset exchange had occurred on January 1, 2014. This pro forma information has been prepared based on estimates and assumptions, which management believes are reasonable, and is not necessarily indicative of what would have occurred had the asset exchange actually been completed on January 1, 2014 or of results that may occur in the future. | |||||
Net revenue | $ | 27,033,560 | |||
Operating income | 4,293,063 | ||||
Net income | 727,450 | ||||
Basic and diluted net income per share | 0.03 | ||||
Discontinued Operations | |||||
After completion of the asset exchange, the Company has significantly decreased operations in the Philadelphia, PA radio market and no longer has any operations in the Miami-Fort Lauderdale, FL radio market. Therefore, the results of operations of WRDW-FM, WXTU-FM, WKIS-FM, WPOW-FM and WQAM-AM have been reported as discontinued operations for the three months ended March 31, 2014. | |||||
A summary of discontinued operations is as follows: | |||||
Net revenue | $ | 11,263,840 | |||
Station operating expenses | 7,494,523 | ||||
Depreciation and amortization | 139,823 | ||||
Other (income) expense, net | (1,223 | ) | |||
Income from discontinued operations before income taxes | 3,630,717 | ||||
Income tax expense | 1,432,128 | ||||
Income from discontinued operations | $ | 2,198,589 | |||
A summary of operating and investing cash flows of discontinued operations is as follows: | |||||
Cash flows from operating activities: | |||||
Income from discontinued operations | $ | 2,198,589 | |||
Adjustments to reconcile income from discontinued operations to net cash used in operating activities: | |||||
Provision for bad debts | 72,702 | ||||
Depreciation and amortization | 139,823 | ||||
Change in operating assets and liabilities | |||||
Accounts receivable | 375,646 | ||||
Prepaid expenses | (234,541 | ) | |||
Other assets | 117,137 | ||||
Accounts payable | (231,131 | ) | |||
Other liabilities | 1,063,223 | ||||
Other operating activities | (4,704,996 | ) | |||
Net cash used in operating activities | $ | (1,203,548 | ) | ||
Cash flows from investing activities: | |||||
Capital expenditures | $ | (105,998 | ) | ||
Repayment of notes receivable from related parties | 8,243 | ||||
Net cash used in investing activities | $ | (97,755 | ) | ||
FCC_Broadcasting_Licenses
FCC Broadcasting Licenses | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Text Block [Abstract] | |||||
FCC Broadcasting Licenses | -4 | FCC Broadcasting Licenses | |||
The change in the carrying amount of FCC broadcasting licenses for the three months ended March 31, 2015 is as follows: | |||||
Balance as of December 31, 2014 | $ | 234,328,330 | |||
Translator license | 190,600 | ||||
Balance as of March 31, 2015 | $ | 234,518,930 | |||
On February 27, 2015, the Company completed the acquisition of one FM translator license from Reach Communications, Inc. for $190,600. This translator license allows the Company to rebroadcast the programming of one of its radio stations in Boca Raton, FL on the FM band over an expanded area of coverage. | |||||
Translator licenses are generally granted for renewable terms of eight years and are tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that they might be impaired. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | -5 | Long-Term Debt | |||||||
Long-term debt is comprised of the following: | |||||||||
December 31, | March 31, | ||||||||
2014 | 2015 | ||||||||
Term loan | $ | 97,693,750 | $ | 96,193,750 | |||||
Revolving credit facility | — | — | |||||||
97,693,750 | 96,193,750 | ||||||||
Less current installments | (3,112,500 | ) | (2,890,625 | ) | |||||
$ | 94,581,250 | $ | 93,303,125 | ||||||
As of December 31, 2014, the credit facility consisted of a term loan with a remaining balance of $97.7 million and a revolving credit facility with a maximum commitment of $20.0 million. The credit facility carried interest, based on adjusted LIBOR, at 3.4% as of December 31, 2014. | |||||||||
As of March 31, 2015, the credit facility consisted of a term loan with a remaining balance of $96.2 million and a revolving credit facility with a maximum commitment of $20.0 million. As of March 31, 2015, the Company had $16.6 million in available remaining commitments under its revolving credit facility. At the Company’s election, the credit facility may bear interest at either (i) adjusted LIBOR, as defined in the credit agreement, plus a margin ranging from 2.75% to 4.75% that is determined by the Company’s consolidated total debt ratio, as defined in the credit agreement or (ii) the base rate, as defined in the credit agreement, plus a margin ranging from 1.75% to 3.75% that is determined by the Company’s consolidated total debt ratio. Interest on adjusted LIBOR loans is payable at the end of each applicable interest period and, for those interest periods with a duration in excess of three months, the three month anniversary of the beginning of such interest period. Interest on base rate loans is payable quarterly in arrears. The credit facility carried interest, based on adjusted LIBOR, at 3.4% as of March 31, 2015 and matures on August 9, 2019. | |||||||||
The credit agreement requires mandatory prepayments equal to 50% of consolidated excess cash flow, as defined in the credit agreement, when the Company’s consolidated total debt is equal to or greater than three times its consolidated operating cash flow, as defined in the credit agreement. Prepayments of excess cash flow are not required when the Company’s consolidated total debt is less than three times its consolidated operating cash flow. Mandatory prepayments of consolidated excess cash flow are due 120 days after year end. The credit agreement also requires mandatory prepayments for defined amounts from net proceeds of asset sales, net insurance proceeds, and net proceeds of debt issuances. | |||||||||
The credit agreement requires the Company to comply with certain financial covenants which are defined in the credit agreement. These financial covenants include: | |||||||||
• | Consolidated Total Debt Ratio. The Company’s consolidated total debt on the last day of each fiscal quarter through June 30, 2015 must not exceed 4.25 times its consolidated operating cash flow for the four quarters then ended. The maximum ratio is 4.0 times for the period from July 1, 2015 through December 31, 2015, 3.75 times for 2016, 3.25 times for 2017, and 3.0 times thereafter. | ||||||||
• | Interest Coverage Ratio. The Company’s consolidated operating cash flow for the four quarters ending on the last day of each fiscal quarter through maturity must not be less than 2.0 times its consolidated cash interest expense for the four quarters then ended. | ||||||||
The credit facility is secured by a first-priority lien on substantially all of the Company’s assets and the assets of substantially all of its subsidiaries and is guaranteed jointly and severally by the Company and substantially all of its subsidiaries. The guarantees were issued to the Company’s lenders for repayment of the outstanding balance of the credit facility. If the Company defaults under the terms of the credit agreement, the Company and its applicable subsidiaries may be required to perform under their guarantees. As of March 31, 2015, the maximum amount of undiscounted payments the Company and its applicable subsidiaries would have been required to make in the event of default was $96.2 million. The guarantees for the credit facility expire on August 9, 2019. | |||||||||
The aggregate scheduled principal repayments of the credit facility for the remainder of 2015 and the next four years are as follows: | |||||||||
2015 | $ | 1,612,500 | |||||||
2016 | 6,390,626 | ||||||||
2017 | 7,668,752 | ||||||||
2018 | 8,946,876 | ||||||||
2019 | 71,574,996 | ||||||||
Total | $ | 96,193,750 | |||||||
Failure to comply with financial covenants, scheduled interest payments, scheduled principal repayments, or any other terms of its credit agreement could result in the acceleration of the maturity of its outstanding debt. The Company believes that it will have sufficient liquidity and capital resources to permit it to meet its financial obligations for at least the next twelve months. As of March 31, 2015, the Company was in compliance with all applicable financial covenants under its credit agreement. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock-Based Compensation | -6 | Stock-Based Compensation | |||||||
The Beasley Broadcast Group, Inc. 2007 Equity Incentive Award Plan (the “2007 Plan”) permits the Company to issue up to 4.0 million shares of Class A common stock. The 2007 Plan allows for eligible employees, directors and certain consultants of the Company to receive shares of restricted stock, stock options or other stock-based awards. The restricted stock awards that have been granted under the 2007 Plan generally vest over one to five years of service. | |||||||||
A summary of restricted stock activity under the 2007 Plan is as follows: | |||||||||
Shares | Weighted- | ||||||||
Average | |||||||||
Grant-Date | |||||||||
Fair Value | |||||||||
Unvested as of January 1, 2015 | 271,425 | $ | 8.2 | ||||||
Granted | 185,076 | 5.2 | |||||||
Vested | (125,900 | ) | 8.76 | ||||||
Forfeited | — | — | |||||||
Unvested as of March 31, 2015 | 330,601 | $ | 5.99 | ||||||
As of March 31, 2015, there was $1.7 million of total unrecognized compensation cost related to restricted stock granted under the 2007 Plan. That cost is expected to be recognized over a weighted-average period of 2.3 years. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes |
The Company’s effective tax rate was approximately 38% for the three months ended March 31, 2015. This rate differs from the federal statutory rate of 35% due to the effect of state income taxes and certain expenses that are not deductible for tax purposes. | |
The Company’s effective tax rate for continuing and discontinued operations combined was approximately 78% for the three months ended March 31, 2014. This rate differs from the federal statutory rate of 35% due to the effect of state income taxes and certain expenses that are not deductible for tax purposes. The increase in the effective tax rate for the three months ended March 31, 2014 as compared to the same period in 2015 also reflects a $1.3 million increase from a change to the Company’s federal tax rate, partially offset by a $0.2 million decrease from a change to the Company’s effective state tax rate. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |
Mar. 31, 2015 | ||
Related Party Transactions [Abstract] | ||
Related Party Transactions | -8 | Related Party Transactions |
On April 3, 2015, the Company contributed an additional $166,667 to Digital PowerRadio, LLC which maintained its ownership interest at approximately 20% of the outstanding units. The Company may be called upon to make additional pro rata cash contributions to Digital PowerRadio, LLC in the future. Digital PowerRadio, LLC is managed by Fowler Radio Group, LLC which is partially-owned by Mark S. Fowler, an independent director of the Company. |
Financial_Instruments
Financial Instruments | 3 Months Ended | |
Mar. 31, 2015 | ||
Investments, All Other Investments [Abstract] | ||
Financial Instruments | -9 | Financial Instruments |
The carrying amount of notes receivable from related parties with a fixed rate of interest of 2.57% was $1.7 million as of March 31, 2015, compared with a fair value of $1.6 million based on current market interest rates. The carrying amount of notes receivable from related parties was $1.7 million as of December 31, 2014, compared with a fair value of $1.7 million based on market rates at that time. | ||
The carrying amount of long term debt, including the current installments, was $96.2 million as of March 31, 2015 and approximated fair value based on current market interest rates. The carrying amount of long-term debt was $97.7 million as of December 31, 2014 and approximated fair value based on market rates at that time. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Accounting Changes and Error Corrections [Abstract] | |||
Recent Accounting Pronouncements | In April 2015, the FASB issued guidance to simplify presentation of debt issuance costs. The guidance requires debt issuance related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. Upon adoption of the guidance, the Company will present loan fees as a deduction from long-term debt in the balance sheet. Loan fees totaled $1.5 million as of March 31, 2015. | ||
In May 2014, the FASB issued guidance to clarify the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a comprehensive framework for revenue recognition that supersedes current general revenue guidance and most industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. An entity should apply the guidance either retrospectively to each prior reporting period presented or retrospectively with the cumulative adjustment at the date of the initial application. The new guidance was originally set to become effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early adoption was not permitted. However, on April 29, 2015, the FASB issued for public comment a proposed update that would defer the effective date of the new guidance to annual reporting periods beginning after December 15, 2017, but would allow early adoption for annual reporting periods beginning after December 15, 2016. The Company has not determined the impact of adoption on its financial statements. | |||
In April 2014, the FASB issued guidance that changes the requirements for reporting discontinued operations. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: | |||
1 | The component of an entity or group of components of an entity meets the criteria to be classified as held for sale. | ||
2 | The component of an entity or group of components of an entity is disposed of by sale. | ||
3 | The component of an entity or group of components of an entity is disposed of other than by sale. | ||
The guidance also requires additional disclosures about discontinued operations. The new guidance is effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company early adopted the new guidance in the third quarter of 2014. See Note 3 for discontinued operations reported under the new guidance. |
Asset_Exchange_Tables
Asset Exchange (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Summary of Pro forma Information | The following pro forma information for the three months ended March 31, 2014 assumes that the asset exchange had occurred on January 1, 2014. This pro forma information has been prepared based on estimates and assumptions, which management believes are reasonable, and is not necessarily indicative of what would have occurred had the asset exchange actually been completed on January 1, 2014 or of results that may occur in the future. | ||||
Net revenue | $ | 27,033,560 | |||
Operating income | 4,293,063 | ||||
Net income | 727,450 | ||||
Basic and diluted net income per share | 0.03 | ||||
Summary of Discontinued Operations | A summary of discontinued operations is as follows: | ||||
Net revenue | $ | 11,263,840 | |||
Station operating expenses | 7,494,523 | ||||
Depreciation and amortization | 139,823 | ||||
Other (income) expense, net | (1,223 | ) | |||
Income from discontinued operations before income taxes | 3,630,717 | ||||
Income tax expense | 1,432,128 | ||||
Income from discontinued operations | $ | 2,198,589 | |||
Summary of Operating and Investing Cash Flows of Discontinued Operations | A summary of operating and investing cash flows of discontinued operations is as follows: | ||||
Cash flows from operating activities: | |||||
Income from discontinued operations | $ | 2,198,589 | |||
Adjustments to reconcile income from discontinued operations to net cash used in operating activities: | |||||
Provision for bad debts | 72,702 | ||||
Depreciation and amortization | 139,823 | ||||
Change in operating assets and liabilities | |||||
Accounts receivable | 375,646 | ||||
Prepaid expenses | (234,541 | ) | |||
Other assets | 117,137 | ||||
Accounts payable | (231,131 | ) | |||
Other liabilities | 1,063,223 | ||||
Other operating activities | (4,704,996 | ) | |||
Net cash used in operating activities | $ | (1,203,548 | ) | ||
Cash flows from investing activities: | |||||
Capital expenditures | $ | (105,998 | ) | ||
Repayment of notes receivable from related parties | 8,243 | ||||
Net cash used in investing activities | $ | (97,755 | ) | ||
FCC_Broadcasting_Licenses_Tabl
FCC Broadcasting Licenses (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Text Block [Abstract] | |||||
Carrying Amount of Broadcasting Licenses | The change in the carrying amount of FCC broadcasting licenses for the three months ended March 31, 2015 is as follows: | ||||
Balance as of December 31, 2014 | $ | 234,328,330 | |||
Translator license | 190,600 | ||||
Balance as of March 31, 2015 | $ | 234,518,930 | |||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Summary of Long-Term Debt | Long-term debt is comprised of the following: | ||||||||
December 31, | March 31, | ||||||||
2014 | 2015 | ||||||||
Term loan | $ | 97,693,750 | $ | 96,193,750 | |||||
Revolving credit facility | — | — | |||||||
97,693,750 | 96,193,750 | ||||||||
Less current installments | (3,112,500 | ) | (2,890,625 | ) | |||||
$ | 94,581,250 | $ | 93,303,125 | ||||||
Scheduled Repayments of Credit Facility | The aggregate scheduled principal repayments of the credit facility for the remainder of 2015 and the next four years are as follows: | ||||||||
2015 | $ | 1,612,500 | |||||||
2016 | 6,390,626 | ||||||||
2017 | 7,668,752 | ||||||||
2018 | 8,946,876 | ||||||||
2019 | 71,574,996 | ||||||||
Total | $ | 96,193,750 | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Restricted Stock Activity | A summary of restricted stock activity under the 2007 Plan is as follows: | ||||||||
Shares | Weighted- | ||||||||
Average | |||||||||
Grant-Date | |||||||||
Fair Value | |||||||||
Unvested as of January 1, 2015 | 271,425 | $ | 8.2 | ||||||
Granted | 185,076 | 5.2 | |||||||
Vested | (125,900 | ) | 8.76 | ||||||
Forfeited | — | — | |||||||
Unvested as of March 31, 2015 | 330,601 | $ | 5.99 | ||||||
Asset_Exchange_Additional_Info
Asset Exchange - Additional Information (Detail) | 0 Months Ended |
Dec. 01, 2014 | |
Radio_Stations | |
Business Combination Increase Decrease To Reflect Liabilities Acquired At Fair Value [Abstract] | |
Number of radio stations acquired through asset exchange | 14 |
Asset_Exchange_Summary_of_Pro_
Asset Exchange - Summary of Pro forma Information (Detail) (CBS Radio [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
CBS Radio [Member] | |
Business Acquisition [Line Items] | |
Net revenue | $27,033,560 |
Operating income | 4,293,063 |
Net income | $727,450 |
Basic and diluted net income per share | $0.03 |
Asset_Exchange_Summary_of_Disc
Asset Exchange - Summary of Discontinued Operations (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Net revenue | $11,263,840 |
Station operating expenses | 7,494,523 |
Depreciation and amortization | 139,823 |
Other (income) expense, net | -1,223 |
Income from discontinued operations before income taxes | 3,630,717 |
Income tax expense | 1,432,128 |
Income from discontinued operations | $2,198,589 |
Asset_Exchange_Summary_of_Oper
Asset Exchange - Summary of Operating and Investing Cash Flows of Discontinued Operations (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Income from discontinued operations | ($2,198,589) | |
Adjustments to reconcile income from discontinued operations to net cash used in operating activities: | ||
Provision for bad debts | 62,131 | 155,649 |
Depreciation and amortization | 1,118,853 | 466,739 |
Change in operating assets and liabilities | ||
Accounts receivable | -45,061 | 1,354,189 |
Prepaid expenses | -1,494,657 | -1,097,448 |
Other assets | 820,121 | 28,050 |
Accounts payable | -266,907 | -188,102 |
Other liabilities | -1,398,719 | -133,513 |
Other operating activities | 21,022 | 128,581 |
Cash flows from investing activities: | ||
Capital expenditures | -462,557 | -1,188,683 |
Repayment of notes receivable from related parties | 92,565 | 98,461 |
Discontinued Operations [Member] | ||
Cash flows from operating activities: | ||
Income from discontinued operations | 2,198,589 | |
Adjustments to reconcile income from discontinued operations to net cash used in operating activities: | ||
Provision for bad debts | 72,702 | |
Depreciation and amortization | 139,823 | |
Change in operating assets and liabilities | ||
Accounts receivable | 375,646 | |
Prepaid expenses | -234,541 | |
Other assets | 117,137 | |
Accounts payable | -231,131 | |
Other liabilities | 1,063,223 | |
Other operating activities | -4,704,996 | |
Net cash used in operating activities | -1,203,548 | |
Cash flows from investing activities: | ||
Capital expenditures | -105,998 | |
Repayment of notes receivable from related parties | 8,243 | |
Net cash used in investing activities | ($97,755) |
FCC_Broadcasting_Licenses_Carr
FCC Broadcasting Licenses - Carrying Amount of Broadcasting Licenses (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
FCC Broadcasting Licenses [Line Items] | ||
Beginning Balance | $234,328,330 | |
Ending Balance | 234,518,930 | 234,328,330 |
FCC Broadcasting License [Member] | ||
FCC Broadcasting Licenses [Line Items] | ||
Beginning Balance | 234,328,330 | |
Translator license | 190,600 | |
Ending Balance | $234,518,930 |
FCC_Broadcasting_Licenses_Addi
FCC Broadcasting Licenses - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended |
Mar. 31, 2015 | Feb. 27, 2015 | |
FCC Broadcasting Licenses [Line Items] | ||
Translator licenses renewable term | 8 years | |
Reach Communications, Inc. [Member] | ||
FCC Broadcasting Licenses [Line Items] | ||
Number of translator licenses acquired | 1 | |
Acquisition of translator licenses | $190,600 |
LongTerm_Debt_Summary_of_LongT
Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Long-term debt | $96,193,750 | $97,693,750 |
Less current installments | -2,890,625 | -3,112,500 |
Long-term debt, net of current portion | 93,303,125 | 94,581,250 |
Long-term debt | 96,193,750 | 97,693,750 |
Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | 96,193,750 | 97,693,750 |
Long-term debt | 96,193,750 | 97,693,750 |
Revolving Credit Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $0 | $0 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||
Long-term debt | $96,193,750 | $97,693,750 |
Revolving credit loan and term loan carried interest | 3.40% | |
Mandatory prepayments of consolidated excess cash flow due period | 120 days | |
Mandatory prepayments of consolidated excess cash flow required by credit agreement | The credit agreement requires mandatory prepayments equal to 50% of consolidated excess cash flow, as defined in the credit agreement, when the Company's consolidated total debt is equal to or greater than three times its consolidated operating cash flow, as defined in the credit agreement. Prepayments of excess cash flow are not required when the Company's consolidated total debt is less than three times its consolidated operating cash flow. Mandatory prepayments of consolidated excess cash flow are due 120 days after year end. The credit agreement also requires mandatory prepayments for defined amounts from net proceeds of asset sales, net insurance proceeds, and net proceeds of debt issuances. | |
First Mortgage [Member] | Must Not Be Less Than [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest Coverage Ratio | 2 | |
Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | 96,193,750 | 97,693,750 |
Revolving Credit Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility maximum commitment | 20,000,000 | 20,000,000 |
Remaining commitments under the revolving credit loan facility | 16,600,000 | |
June Thirty Two Thousand Fifteen [Member] | First Mortgage [Member] | Must Not Exceed [Member] | Forecast [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt Covenants Aggregate Leverage Ratio | 4.25 | |
July One Two Thousand Fifteen Through December Thirty First Two Thousand Fifteen [Member] | First Mortgage [Member] | Maximum [Member] | Forecast [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt Covenants Aggregate Leverage Ratio | 4 | |
January 1, 2016 through December 31, 2016 [Member] | First Mortgage [Member] | Maximum [Member] | Forecast [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt Covenants Aggregate Leverage Ratio | 3.75 | |
January One Two Thousand Seventeen Through December Thirty First Two Thousand Seventeen [Member] | First Mortgage [Member] | Maximum [Member] | Forecast [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt Covenants Aggregate Leverage Ratio | 3.25 | |
January One Two Thousand Eighteen Through Thereafter [Member] | First Mortgage [Member] | Maximum [Member] | Forecast [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt Covenants Aggregate Leverage Ratio | 3 | |
Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $96,193,750 | |
Revolving credit loan and term loan carried interest | 3.40% | |
Revolving credit facility and term loan maturity date | 9-Aug-19 | |
Mandatory prepayments of excess cash flow | 50.00% | |
Credit Facility [Member] | Revolving Credit Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, Interest Rate Description | At the Company's election, the credit facility may bear interest at either (i) adjusted LIBOR, as defined in the credit agreement, plus a margin ranging from 2.75% to 4.75% that is determined by the Company's consolidated total debt ratio, as defined | |
Credit Facility [Member] | Revolving Credit Loan [Member] | Maximum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility interest rate margins | 4.75% | |
Credit Facility [Member] | Revolving Credit Loan [Member] | Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility interest rate margins | 3.75% | |
Credit Facility [Member] | Revolving Credit Loan [Member] | Minimum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility interest rate margins | 2.75% | |
Credit Facility [Member] | Revolving Credit Loan [Member] | Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility interest rate margins | 1.75% | |
Credit Facility [Member] | Revolving Credit Loan and Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility and term loan maturity date | 9-Aug-19 |
LongTerm_Debt_Scheduled_Repaym
Long-Term Debt - Scheduled Repayments of Credit Facility (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
2015 | $1,612,500 | |
2016 | 6,390,626 | |
2017 | 7,668,752 | |
2018 | 8,946,876 | |
2019 | 71,574,996 | |
Total | $96,193,750 | $97,693,750 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (2007 Plan [Member], USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost related to restricted stock granted | $1.70 |
Cost expected to be recognized over a weighted-average period | 2 years 3 months 18 days |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock awards, vest, period | 1 year |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock awards, vest, period | 5 years |
Class A Common Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized | 4,000,000 |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock Activity (Detail) (2007 Plan [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
2007 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Shares, Beginning Balance | 271,425 |
Granted, Shares | 185,076 |
Vested, Shares | -125,900 |
Forfeited, Shares | 0 |
Unvested Shares, Ending Balance | 330,601 |
Unvested, Weighted-Average Grant-Date Fair Value, Beginning Balance | $8.20 |
Granted, Weighted-Average Grant-Date Fair Value | $5.20 |
Vested, Weighted-Average Grant-Date Fair Value | $8.76 |
Forfeited, Weighted-Average Grant-Date Fair Value | $0 |
Unvested, Weighted-Average Grant-Date Fair Value, Ending Balance | $5.99 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 38.00% | 78.00% |
Federal statutory rate | 35.00% | 35.00% |
Increase from a change to the Company's federal tax rate based on a projected increase in taxable income | $1.30 | |
Decrease from a change to the Company's effective state tax rate | ($0.20) |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Digital PowerRadio LLC [Member], Subsequent Event [Member], USD $) | 0 Months Ended | |
Apr. 03, 2015 | Apr. 03, 2015 | |
Digital PowerRadio LLC [Member] | Subsequent Event [Member] | ||
Related Party Transaction [Line Items] | ||
Additional contribution to related party | $166,667 | |
Percentage of outstanding units ownership interest to Digital PowerRadio | 20.00% | 20.00% |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument Fair Value Carrying Value [Abstract] | ||
Percentage of fixed rate of interest carrying amount of notes receivables | 2.57% | |
Notes receivable from related parties | $1,655,527 | $1,748,092 |
Fair value of notes receivable | 1,600,000 | 1,700,000 |
Long-term debt | $96,193,750 | $97,693,750 |