Hemisphere Media (HMTV) 10-Q 11 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 10, 2015
Entity Registrant Name	HEMISPHERE MEDIA GROUP, INC.
Entity Central Index Key	1,567,345
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Common Class A
Entity Common Stock, Shares Outstanding		15,587,725
Common Class B
Entity Common Stock, Shares Outstanding		30,027,418

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current Assets
Cash	$ 159,678	$ 142,010
Accounts receivable, net of allowance for doubtful accounts of $1,541 and $1,072, respectively	23,882	25,065
Due from related parties	1,094	1,032
Programming rights	5,970	5,441
Deferred taxes	4,222	4,222
Prepaid taxes and other current assets	8,680	8,071
Total current assets	203,526	185,841
Programming rights	7,894	6,652
Property and equipment, net	23,802	23,867
Deferred financing costs, net	2,507	2,758
Broadcast license	41,356	41,356
Goodwill	164,887	164,887
Other intangibles, net	84,845	91,611
Other assets	1,413	1,425
Total Assets	530,230	518,397
Current Liabilities
Accounts payable	1,952	2,176
Due to related parties	406	787
Accrued agency commissions	3,545	6,642
Accrued compensation and benefits	3,491	3,391
Accrued marketing	2,791	3,245
Other accrued expenses	7,941	5,312
Programming rights payable	4,307	4,228
Current portion of long-term debt	2,250	2,250
Total current liabilities	26,683	28,031
Programming rights payable	942	111
Long-term debt, net of current portion	218,607	219,541
Deferred taxes	11,670	11,670
Defined benefit pension obligation	2,732	2,631
Total Liabilities	$ 260,634	$ 261,984
Stockholders' Equity
Preferred stock, $0.0001 par value; 50,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively
Additional paid-in capital	$ 255,226	$ 246,858
Treasury stock, at cost; 229,100 and 146,703 at June 30, 2015 and December 31, 2014, respectively	(3,040)	(1,961)
Retained earnings	17,992	12,098
Accumulated comprehensive loss	(586)	(586)
Total Stockholders' Equity	269,596	256,413
Total Liabilities and Stockholders' Equity	530,230	518,397
Common Class A
Stockholders' Equity
Common stock	1	1
Common Class B
Stockholders' Equity
Common stock	$ 3	$ 3

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts receivable, allowance for doubtful accounts	$ 1,541	$ 1,072
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock, shares	229,100	146,703
Common Class A
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	15,302,441	14,518,734
Common stock, shares outstanding	15,302,441	14,518,734
Common Class B
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	33,000,000	33,000,000
Common stock, shares issued	30,027,418	30,027,418
Common stock, shares outstanding	30,027,418	30,027,418

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Operations
Net revenues	$ 32,618	$ 29,055	$ 62,089	$ 50,006
Operating Expenses:
Cost of revenues	9,908	9,292	19,360	16,890
Selling, general and administrative	9,325	8,241	17,909	15,122
Depreciation and amortization	4,265	4,832	8,646	7,410
Other expenses	306	62	306	311
Loss on disposition of assets	34	16	31	14
Total operating expenses	23,838	22,443	46,252	39,747
Operating income	8,780	6,612	15,837	10,259
Other Expenses:
Interest expense, net	(3,008)	(2,936)	(5,991)	(5,843)
Income before income taxes	5,772	3,676	9,846	4,416
Income tax (expense) benefit	(2,341)	1,642	(3,952)	1,150
Net income	$ 3,431	$ 5,318	$ 5,894	$ 5,566
Earnings per share:
Basic (in dollars per share)	$ 0.08	$ 0.13	$ 0.14	$ 0.13
Diluted (in dollars per share)	$ 0.08	$ 0.13	$ 0.14	$ 0.13
Weighted average shares outstanding:
Basic (in shares)	42,737	42,345	42,566	42,259
Diluted (in shares)	43,290	42,518	43,267	42,507

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 3,431	$ 5,318	$ 5,894	$ 5,566
Comprehensive income	$ 3,431	$ 5,318	$ 5,894	$ 5,566

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Stockholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Common StockCommon Class A	Common StockCommon Class B	Additional Paid-in Capital	Treasury StockCommon Class A	Retained Earnings	Accumulated Comprehensive Loss	Total
Balance at the beginning of the period at Dec. 31, 2014	$ 1	$ 3	$ 246,858	$ (1,961)	$ 12,098	$ (586)	$ 256,413
Balance at the beginning of the period (in shares) at Dec. 31, 2014	14,519	30,027
Changes in Stockholders' Equity
Net income					5,894		5,894
Stock-based compensation			2,687				2,687
Vesting of restricted stock			274	(1,079)			(805)
Vesting of restricted stock (in shares)	304
Issuance of shares			5,407				5,407
Issuance of shares (in shares)	479
Balance at the end of the period at Jun. 30, 2015	$ 1	$ 3	$ 255,226	$ (3,040)	$ 17,992	$ (586)	$ 269,596
Balance at the end of the period (in shares) at Jun. 30, 2015	15,302	30,027

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows From Operating Activities:
Net income	$ 5,894	$ 5,566
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,646	7,410
Program amortization	5,581	4,877
Amortization of deferred financing costs	251	254
Amortization of original issue discount	191	128
Stock-based compensation	2,687	3,216
Provision for bad debts	669	190
Loss on disposition of assets	31	14
Deferred taxes		(2,868)
Decrease (increase) in:
Accounts receivable	514	(4,687)
Due from related parties	(62)	44
Programming rights	(7,351)	(5,892)
Prepaid expenses and other current assets	(598)	(3,989)
(Decrease) increase in:
Accounts payable	(224)	881
Due to related parties	(381)	357
Accrued expenses	(823)	(2,908)
Programming rights payable	910	614
Other liabilities	101	52
Net cash provided by operating activities	16,036	3,259
Cash Flows From Investing Activities:
Acquisition of Cable Networks		(101,891)
Proceeds from sale of assets	3	10
Capital expenditures	(1,848)	(1,396)
Net cash used in investing activities	(1,845)	(103,277)
Cash Flows From Financing Activities:
Repayments of long-term debt	(1,125)	(875)
Purchase of treasury stock	(1,079)	(969)
Proceeds from issuance of stock	5,407	1
Excess tax benefits	274	106
Net cash provided by (used in) financing activities	3,477	(1,737)
Net increase (decrease) in cash	17,668	(101,755)
Cash:
Beginning	142,010	176,622
Ending	159,678	74,867
Cash payments for:
Interest	5,621	5,465
Income taxes	$ 2,474	$ 3,720

Nature of business

Nature of business	6 Months Ended
	Jun. 30, 2015
Nature of business
Nature of business	Note 1. Nature of business Nature of business: The accompanying Condensed Consolidated Financial Statements include the accounts of Hemisphere Media Group, Inc. (“Hemisphere” or the “Company”), the parent holding company of Cine Latino, Inc. (“Cinelatino”), WAPA Holdings, LLC (formerly known as InterMedia Español Holdings, LLC) (“WAPA”), and HMTV Cable, Inc., the parent company of the entities for the newly acquired networks consisting of Pasiones, TV Dominicana, and Centroamerica TV (see below). The Company determines its operating segments based upon (i) financial information reviewed by the chief operating decision maker, the Chief Executive Officer, (ii) internal management and related reporting structure and (iii) the basis upon which the chief operating decision maker makes resource allocation decisions. We have one operating segment, Hemisphere. In these notes, the terms “Company,” “we,” “us” or “our” mean Hemisphere and all subsidiaries included in our Condensed Consolidated Financial Statements. Basis of presentation: The accompanying unaudited Condensed Consolidated Financial Statements for Hemisphere and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement have been included. Our financial condition as of, and operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the financial condition or results that may be expected for any future interim period or for the year ending December 31, 2015. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2014 Annual Report. On April 1, 2014, we acquired the assets of three Spanish-language cable television networks for $101.9 million in cash. The three acquired cable networks include Pasiones, Centroamerica TV and Television Dominicana. Reclassification: Certain prior year due from related parties accounts have been reclassified to accounts receivable on the accompanying condensed consolidated balance sheet, which resulted in an increase to accounts receivable and the related allowance for doubtful accounts to conform with the fiscal 2015 presentation with no impact to current assets. Net earnings per common share: Basic earnings per share (“EPS”) are computed by dividing income attributable to common stockholders by the number of weighted-average outstanding shares of common stock. Diluted EPS reflects the effect of the assumed exercise of stock options and vesting of restricted shares only in the periods in which such effect would have been dilutive. The following table sets forth the computation of the common shares outstanding used in determining basic and diluted EPS ( Dollar and share amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator for earnings per common share calculation: Net income $ $ $ $ Denominator for earnings per common share calculation: Weighted-average common shares, basic Effect of dilutive securities Stock options, resticted stock and warrants Weighted-average common shares, diluted EPS Basic $ $ $ $ Diluted $ $ $ $ We apply the treasury stock method to measure the dilutive effect of our outstanding stock options and restricted stock awards and include the respective common share equivalents in the denominator of our diluted income per common share calculation. Potentially dilutive securities representing 1.0 million shares of common stock for the three and six months ended June 30, 2015, respectively, were excluded from the computation of diluted income per common share for this period because their effect would have been anti-dilutive. The net income per share amounts are the same for our Class A common stock, par value $0.0001 per share (“Class A common stock”) and Class B common stock, par value $0.0001 per share (“Class B common stock”), because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. Use of estimates: In preparing these financial statements, management had to make estimates and assumptions that affected the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the balance sheet dates, and the reported revenues and expenses for the three and six months ended June 30, 2015 and 2014. Such estimates are based on historical experience and other assumptions that are considered appropriate in the circumstances. However, actual results could differ from those estimates. Recent accounting pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued the Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (Topic 606). ASU 2014-09 replaces the majority of all U.S. GAAP guidance that currently exists on revenue recognition with a single model to be applied to all contracts with customers. The core principle of ASU 2014-09 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.” For a public entity, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted, but not before annual periods beginning after December 15, 2016. An entity must apply ASU 2014-09 using either the full retrospective approach, by restating all years presented, or the cumulative effect at the date of adoption approach. We are currently evaluating the adoption methodology and the impact of this update on its consolidated financial position, results of operations and cash flows. In April 2015, the FASB issued, ASU 2015-03 Interests — Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs , requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability. Recognition and measurement guidance are not impacted by the ASU. The guidance is effective for fiscal years beginning after December 15, 2015, with retrospective disclosure upon transition, for all periods presented. We will adopt the guidance in the first quarter of 2016, with the impact to our consolidated statement of position to be a reduction in assets where deferred costs are currently disclosed, and a reduction to long-term debt where these costs will be recorded after the transition.

Related party transactions

Related party transactions	6 Months Ended
	Jun. 30, 2015
Related party transactions
Related party transactions	Note 2. Related party transactions The Company has various agreements with MVS Multivision Digital S. de R.L. de C.V. and its affiliates (collectively “MVS”), a Mexican media and television conglomerate, which have directors and stockholders in common with the Company as follows: · An agreement through August 1, 2017 pursuant to which MVS provides Cinelatino with satellite and support services including origination, uplinking and satellite delivery of two feeds of Cinelatino’s channel (for U.S. and Latin America), master control and monitoring, dubbing, subtitling and close captioning, and other support services (the “Satellite and Support Services Agreement”). This agreement was amended on May 20, 2015, to expand the services MVS provides to Cinelatino to include commercial insertion and editing services to support advertising sales on Cinelatino’s U.S. feed. Expenses incurred under this agreement are included in cost of revenues in the accompanying condensed consolidated statements of operations. Total expenses incurred were $0.5 million for each of the three months ended June 30, 2015 and 2014, and $1.1 million for each of the six months ended June 30, 2015 and 2014. · A ten-year master license agreement through July 2017, which grants MVS the non-exclusive right (except with respect to pre-existing distribution arrangements between MVS and third party distributors that are effective at the time of the consummation of the Transaction) to duplicate, distribute and exhibit Cinelatino’s service via cable, satellite or by any other means in Latin America and in Mexico to the extent that Mexico distribution is not owned by MVS. Pursuant to the agreement, Cinelatino receives revenue net of MVS’s distribution fees, which is presently equal to 13.5% of all license fees collected from distributors in Latin America and Mexico. Total revenues recognized were $1.2 million and $1.1 million for the three months ended June 30, 2015 and 2014, respectively, and $2.4 million and $2.2 million for the six months ended June 30, 2015 and 2014, respectively. · An affiliation agreement through August 1, 2017 for the distribution and exhibition of Cinelatino’s programming service through Dish Mexico (dba Commercializadora de Frecuencias Satelitales, S de R.L. de C.V.), an MVS affiliate that transmits television programming services throughout Mexico. Total revenues recognized were $0.5 million and $0.5 million for the three months ended June 30, 2015 and 2014, respectively, and $1.0 million and $0.9 million for the six months ended June 30, 2015 and 2014, respectively. · In November 2013, Cinelatino licensed six movies from MVS. Expenses incurred under this agreement are included in cost of revenues and amounted to $0 for each of the three months ended June 30, 2015 and 2014. At June 30, 2015 and December 31, 2014, $0.0 million, is included in programming rights related to this agreement. Amounts due from MVS pursuant to the agreements noted above, net of an allowance for doubtful accounts, amounted to $3.5 million and $3.4 million at June 30, 2015 and December 31, 2014, respectively, and are remitted monthly. Amounts due to MVS pursuant to the agreements noted above amounted to $0.4 million and $0.7 million at June 30, 2015 and December 31, 2014, respectively, and are remitted monthly. We entered into a three year consulting agreement effective April 9, 2013 with James M. McNamara, a member of the Company’s board of directors, to provide the development, production and maintenance of programming, affiliate relations, identification and negotiation of carriage opportunities, and the development, identification and negotiation of new business initiatives including sponsorship, new channels, direct-to-consumer programs and other interactive initiatives. Total expenses incurred under these agreements are included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations and amounted to $0.1 million and $0.1 million for the three months ended June 30, 2015 and 2014, respectively, and $0.2 million and $0.2 million for the six months ended June 30, 2015 and 2014, respectively. Amounts due to this related party totaled $0.0 million and $0.1 million at June 30, 2015 and December 31, 2014, respectively. We have entered into programming agreements with Panamax Films, LLC (“Panamax”), an entity owned by James M. McNamara for the licensing of three movie titles. Expenses incurred under this agreement are included in cost of revenues in the accompanying condensed consolidated statements of operations, and amounted to $0 million for each of the six months ended June 30, 2015 and 2014. At June 30, 2015 and December 31, 2014, $0.2 million, is included in Programming Rights in the accompanying condensed consolidated balance sheets. During 2013, we engaged Pantelion to assist in the licensing of a feature film in the United States. Pantelion is a joint venture made up of several organizations, including Panamax Films, LLC (“Panamax”), Lions Gate Films Inc. (“Lions Gate”) and Grupo Televisa. Panamax is owned by James McNamara, who is also the Chairman of Pantelion. We agreed to pay to Pantelion, in connection with their services, up to 12.5% of all “licensing revenues”. Total licensing revenues are included in net revenues in the accompanying condensed consolidated statements of operations and amounted to $0.0 million for the three and six months ended June 30, 2015 and 2014. Total expenses incurred are included in cost of revenues in the accompanying condensed consolidated statements of operations and amounted to $0.0 million for each of the three and six months ended June 30, 2015 and 2014. There are no amounts due to Pantelion at June 30, 2015 and December 31, 2014. Since February, 2015, we are operating under a non-binding term sheet (subject to documentation and execution of a definitive agreement) to license the rights to fourteen (14) motion pictures from Lions Gate for a total license fee of $0.8 million. Some of the fourteen titles are owned by Panetlion, for which Lions Gate acts as Pantelion’s exclusive licensing agent. Fees paid by Cinelatino to Lions Gate may be remunerated to Pantelion in accordance with their financial arrangements. Expenses incurred under this agreement are included in cost of revenues in the accompanying condensed consolidated statements of operations, and amounted to $0.0 million for each of the three and six months ended June 30, 2015, respectively. At June 30, 2015, $0.1 million is included in programming rights in the accompanying condensed consolidated balance sheets related to this agreement.

Goodwill and intangible assets

Goodwill and intangible assets	6 Months Ended
	Jun. 30, 2015
Goodwill and intangible assets
Goodwill and intangible assets	Note 3. Goodwill and intangible assets Goodwill and intangible assets consist of the following at June 30, 2015 and December 31, 2014 ( amounts in thousands ): June 30, December 31, 2015 2014 Broadcast license $ $ Goodwill Other intangibles Total intangible assets $ $ A summary of changes in the Company’s goodwill and other indefinite-lived intangible assets, on a net basis, for the six months ended June 30, 2015 is as follows (amounts in thousands ) : Net Balance at December 31, 2014 Additions Impairment Net Balance at June 30, 2015 Broadcast license $ $ — $ — $ Goodwill — — Brands — — Other intangibles — — Total indefinite-lived intangibles $ $ — $ — $ A summary of the changes in the Company’s other amortizable intangible assets for the six months ended June 30, 2015 is as follows ( amounts in thousands ) : Net Balance at December 31, 2014 Additions Amortization Net Balance at June 30, 2015 Affiliate relationships $ $ — $ ) $ Advertiser Relationships — ) Non-Compete Agreement — ) Other intangibles ) Total Finite-lived intangibles $ $ $ ) $ The aggregate amortization expense of the Company’s amortizable intangible assets was $3.3 million and $3.9 million for the three months ended June 31, 2015 and 2014, respectively, and $6.8 million and $5.5 million for the six months ended June 30, 2015 and 2014, respectively. The weighted average remaining amortization period is 5.5 years at June 30, 2015. Future estimated amortization expense is as follows (amounts in thousands): Year Ending December 31, Amount Remainder 2015 $ 2016 2017 2018 2019 2020 2021 and thereafter $

Income taxes

Income taxes	6 Months Ended
	Jun. 30, 2015
Income taxes
Income taxes	Note 4. Income taxes For the six month periods ended June 30, 2015 and 2014, our income tax expense has been computed utilizing the estimated annual effective rates of 40.1% and 38.8% respectively. The difference between the annual effective rate of 40.1% and the statutory Federal income tax rate of 35% in the six month period in 2015, is primarily due to state and foreign income taxes. The difference between the annual effective rate of 38.8% and the actual effective rate in the six month period in 2014, is primarily due to the reversal of the valuation allowance previously recorded of $2.5 million, as we determined that it was reasonably certain that our foreign tax credits will be realized following the Cable Networks Acquisition on April 1, 2014. Income tax expense for the three and six months ended June 30, 2015, was $2.3 million and $4.0 million, respectively. Income tax benefit for the three and six months ended June 30, 2014, was $1.6 million and $1.2 million, respectively.

Long-term debt

Long-term debt	6 Months Ended
	Jun. 30, 2015
Long-term debt
Long-term debt	Note 5. Long-term debt Long-term debt at June 30, 2015 and 2014 consists of the following (amounts in thousands) : June 30, 2015 December 31, 2014 Senior Notes due July 2020 $ $ Less: Current portion ) ) $ $ On July 30, 2013 certain of our subsidiaries (the “Borrowers”) entered into a credit agreement providing for a $175.0 million senior secured term loan B facility (the “Term Loan Facility”) which matures on July 30, 2020. On July 31, 2014, certain of our subsidiaries amended the Term Loan Facility (the “Amended Term Loan Facility”) which provides for an aggregate principal amount of $225.0 million and matures on July 30, 2020. Pricing on the Amended Term Loan Facility was set at LIBOR plus 400 basis points (decreased from a margin of 500 basis points) subject to a LIBOR floor of 1.00% (decreased from a LIBOR floor of 1.25%), resulting in an effective interest rate of 5.00% in the current quarter and 0.5% of original issue discount (“OID”). The Amended Term Loan Facility also provides an uncommitted accordion option (the “Incremental Facility”) allowing for additional borrowings under the Term Loan Facility up to an aggregate principal amount equal to (i) $40.0 million plus (ii) an additional amount of up to 4.0x first lien net leverage. The obligations under the Amended Term Loan Facility are guaranteed by HMTV, LLC, our direct wholly-owned subsidiary, and all of our existing and future subsidiaries (subject to certain exceptions in the case of immaterial subsidiaries). Additionally, the Amended Term Loan Facility provides for an uncommitted incremental revolving loan option in an aggregate principal amount of up to $20.0 million, which shall be secured on a pari passu basis by the collateral securing the Amended Term Loan Facility. The Amended Term Loan Facility is secured by a first-priority perfected security interest in substantially all of our assets. The proceeds of the Term Loan Facility, as amended, were used to pay fees and expenses associated with the Transaction and the Cable Networks Acquisition, and for general corporate purposes including potential future acquisitions. The OID of $1.9 million, net of accumulated amortization of $0.5 million at June 30, 2015, was recorded as a reduction to the principal amount of the Term Loan Facility outstanding and will be amortized as a component of interest expense over the term of the Amended Term Loan Facility. We recorded $2.5 million of deferred financing costs associated with the Term Loan Facility, as amended, net of accumulated amortization of $0.7 million at June 30, 2015, which will be amortized utilizing the effective interest rate method over the remaining term of the Amended Term Loan Facility. The Amended Term Loan Facility principal payments are payable on quarterly due dates commencing September 30, 2014, with a final installment on July 30, 2020. In addition, pursuant to the terms of the Amended Term Loan Facility, within 90 days after the end of each fiscal year (commencing with the fiscal year ending December 31, 2015), the Borrowers are required to make a prepayment of the loan principal in an amount equal to 50% of the excess cash flow of the most recently completed fiscal year. Excess cash flow is generally defined as net income plus depreciation and amortization expense, less mandatory prepayments of the term loan, interest charges, income taxes and capital expenditures, and adjusted for the change in working capital. The percentage of the excess cash flow used to determine the amount of the prepayment of the loan declines from 50% to 25%, and again to 0% at lower leverage ratios. The carrying value of the long-term debt approximates fair value at June 30, 2015 and December 31, 2014. The estimated fair value of our variable-rate debt was derived from quoted market prices by independent dealers (Level 2 in the fair value hierarchy under ASC 820, Fair Value Measurements and Disclosures ). The following are the maturities of our long-term debt as of June 30, 2015 ( amounts in thousands ): Year Ending December 31, 2015 $ 2016 2017 2018 2019 and thereafter $

Stockholder's equity

Stockholder's equity	6 Months Ended
	Jun. 30, 2015
Stockholder's equity
Stockholder's equity	Note 6. Stockholders’ equity Secondary Offering In May 2015, the Company completed a secondary offering on behalf of certain selling stockholders of 3,195,583 shares of Class A common stock at a price of $12.00 per share, less underwriting discounts and commissions. In connection with the offering, the underwriters exercised their additional share purchase option, where an additional 479,337 shares were offered by the Company at $12.00 per share, less underwriting discounts and commissions (the “Option Shares”). The Company did not receive any of the proceeds related to the sale of the 3,195,583 shares of Class A common stock from the secondary offering, and received net proceeds of approximately $5.4 million from the sale of the Option Shares. Equity incentive plans An aggregate of 4.0 million shares of our Class A common stock were authorized for issuance under the terms of the Hemisphere Media Group, Inc. 2013 Equity Incentive Plan (the “2013 Equity Incentive Plan). At June 30, 2015, 0.9 million shares remained available for issuance of stock options or other stock-based awards under our Equity Incentive Plan (including shares of restricted Class A common stock surrendered to the Company in payment of taxes required to be withheld in respect of vested shares of restricted Class A common stock and available for issuance). The expiration date of the 2013 Equity Incentive Plan, on and after which date no awards may be granted, is April 4, 2023. The Company’s board of directors administers the 2013 Equity Incentive Plan, and has the sole and plenary authority to, among other things: (i) designate participants; (ii) determine the type, size, and terms and conditions of awards to be granted; (iii) determine the method by which an award may be settled, exercised, canceled, forfeited, or suspended. The Company’s time-based restricted stock awards and option awards generally vest in three equal annual installments beginning on the first anniversary of the grant date, subject to the grantee’s continued employment or service with the Company. The Company’s event-based restricted stock awards and option awards generally vest either upon the Company’s Class A common stock attaining a $15.00 closing price per share, as quoted on the NASDAQ Global Market, on at least 10 trading days, subject to the grantee’s continued employment or service with the Company. Other event-based restricted stock awards granted to certain members of our Board vest on the day preceding the Company’s annual shareholder meeting. Stock-based compensation Stock-based compensation expense related to stock options and restricted stock was $1.4 million and $1.7 for the three months ended June 30, 2015 and 2014, respectively, and $2.7 million and $3.2 for the six months ended June 30, 2015 and 2014, respectively. At June 30, 2015, there was $2.8 million of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over weighted-average period of 2.0 years. At June 30, 2015, there was $2.9 million of total unrecognized compensation cost related to non-vested restricted stock, which is expected to be recognized over a weighted-average period of 0.9 years. Stock options The fair value of stock options granted is estimated at the date of grant using the Black-Scholes pricing model for time-based options and the Monte Carlo simulation model for event-based options. The expected term of options granted is derived using the simplified method under ASC 718-10-S99-1/SEC Topic 14.D for “plain vanilla” options and the Monte Carlo simulation for event-based options. Expected volatility is based on the historical volatility of the Company’s competitors given its lack of trading history. The risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The Company has estimated forfeitures of 1.5%, as the awards are to management for which the Company expects lower turnover, and has assumed no dividend yield, as dividends have never been paid to stock or option holders and will not be paid for the foreseeable future. Black-Scholes Option Valuation Assumptions Six Months Ended June 30, 2015 2014 Risk-free interest rate 1.77% - 2.12% 1.76%-1.92% Dividend yield — — Volatility 26.2% - 29.5% 28.4%-30.9% Weighted-average expected term (years) 6.0-6.3 The following table summarizes stock option activity for the six months ended June 30, 2015 (shares and intrinsic value in thousands) : Number of shares Weighted-average exercise price Weighted-average remaining contractual term Aggregate intrinsic value Outstanding at December 31, 2014 $ $ Granted — — Exercised — — — — Forfeited — — — — Expired — — — — Outstanding at June 30, 2015 $ $ Vested at June 30, 2015 $ $ Exercisable at June 30, 2015 $ $ The weighted average grant date fair value of options granted for the six months ended June 30, 2015 was $4.36. At June 30, 2015, 0.3 million options granted are unvested, event-based options. Restricted stock Certain employees and directors have been awarded restricted stock under the 2013 Equity Incentive Plan. The time-based restricted stock grants vest primarily over a period of three years. The fair value and expected term of event-based restricted stock grants is estimated at the grant date using the Monte Carlo simulation model. The following table summarizes restricted share activity for the six months ended June 30, 2015 ( shares in thousands ): Number of shares Weighted-average grant date fair value Outstanding at December 31, 2014 $ Granted Vested ) Forfeited — — Outstanding at June 30, 2015 $ At June 30, 2015, 0.2 million shares of restricted stock issued were unvested, event-based shares. Warrants In connection with our capitalization noted above, we have issued 14.7 million warrants, which qualify as equity instruments. Each warrant entitles the holder to purchase one-half of one share of our Class A common stock at a price of $6.00 per half share. At June 30, 2015, 14.7 million warrants were issued and outstanding, which are exercisable into 7.3 million shares of our Class A common stock. Warrants are only exercisable for a whole number of shares of common stock (i.e. only an even number of warrants may be exercised at any given time by a registered holder). As a result, a holder must exercise a least two warrants, at an effective exercise price of $12.00 per share. At the option of the Company, 10.0 million warrants may be called for redemption, provided that the last sale price of our Class A common stock reported has been at least $18.00 per share on each of twenty trading days within the thirty-day period ending on the third business day prior to the date on which notice of redemption is given. The warrants expire on April 4, 2018. During the six months ended June 30, 2015, no warrants were exercised.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2015
Contingencies
Contingencies	Note 7. Contingencies We are involved in various legal actions, generally related to our operations. Management believes, based on advice from legal counsel, that the outcomes of such legal actions will not materially affect our financial condition.

Commitments

Commitments	6 Months Ended
	Jun. 30, 2015
Commitments
Commitments	Note 8. Commitments We have entered into certain rental property contracts with third parties, which are accounted for as operating leases. Rental expense was $0.1 million for each of the three months ended June 30, 2015 and 2014, and $0.3 million and $0.2 million for the six months ended June 30, 2015 and 2014, respectively. We have certain commitments including various operating leases. Future minimum payments for these commitments and other commitments are as follows (amounts in thousands) : Year Ending December 31, Operating Leases Other Commitments Total 2015 $ $ $ 2016 2017 2018 2019 and thereafter Total $ $ $

Nature of Business (Policies)

Nature of Business (Policies)	6 Months Ended
	Jun. 30, 2015
Nature of business
Basis of presentation:	Basis of presentation: The accompanying unaudited Condensed Consolidated Financial Statements for Hemisphere and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement have been included. Our financial condition as of, and operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the financial condition or results that may be expected for any future interim period or for the year ending December 31, 2015. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2014 Annual Report. On April 1, 2014, we acquired the assets of three Spanish-language cable television networks for $101.9 million in cash. The three acquired cable networks include Pasiones, Centroamerica TV and Television Dominicana.
Reclassification:	Reclassification: Certain prior year due from related parties accounts have been reclassified to accounts receivable on the accompanying condensed consolidated balance sheet, which resulted in an increase to accounts receivable and the related allowance for doubtful accounts to conform with the fiscal 2015 presentation with no impact to current assets.
Net earnings per common share:	Net earnings per common share: Basic earnings per share (“EPS”) are computed by dividing income attributable to common stockholders by the number of weighted-average outstanding shares of common stock. Diluted EPS reflects the effect of the assumed exercise of stock options and vesting of restricted shares only in the periods in which such effect would have been dilutive. The following table sets forth the computation of the common shares outstanding used in determining basic and diluted EPS ( Dollar and share amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator for earnings per common share calculation: Net income $ $ $ $ Denominator for earnings per common share calculation: Weighted-average common shares, basic Effect of dilutive securities Stock options, resticted stock and warrants Weighted-average common shares, diluted EPS Basic $ $ $ $ Diluted $ $ $ $ We apply the treasury stock method to measure the dilutive effect of our outstanding stock options and restricted stock awards and include the respective common share equivalents in the denominator of our diluted income per common share calculation. Potentially dilutive securities representing 1.0 million shares of common stock for the three and six months ended June 30, 2015, respectively, were excluded from the computation of diluted income per common share for this period because their effect would have been anti-dilutive. The net income per share amounts are the same for our Class A common stock, par value $0.0001 per share (“Class A common stock”) and Class B common stock, par value $0.0001 per share (“Class B common stock”), because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation.
Use of estimates:	Use of estimates: In preparing these financial statements, management had to make estimates and assumptions that affected the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the balance sheet dates, and the reported revenues and expenses for the three and six months ended June 30, 2015 and 2014. Such estimates are based on historical experience and other assumptions that are considered appropriate in the circumstances. However, actual results could differ from those estimates.
Recent accounting pronouncements:	Recent accounting pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued the Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (Topic 606). ASU 2014-09 replaces the majority of all U.S. GAAP guidance that currently exists on revenue recognition with a single model to be applied to all contracts with customers. The core principle of ASU 2014-09 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.” For a public entity, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted, but not before annual periods beginning after December 15, 2016. An entity must apply ASU 2014-09 using either the full retrospective approach, by restating all years presented, or the cumulative effect at the date of adoption approach. We are currently evaluating the adoption methodology and the impact of this update on its consolidated financial position, results of operations and cash flows. In April 2015, the FASB issued, ASU 2015-03 Interests — Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs , requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability. Recognition and measurement guidance are not impacted by the ASU. The guidance is effective for fiscal years beginning after December 15, 2015, with retrospective disclosure upon transition, for all periods presented. We will adopt the guidance in the first quarter of 2016, with the impact to our consolidated statement of position to be a reduction in assets where deferred costs are currently disclosed, and a reduction to long-term debt where these costs will be recorded after the transition.

Nature of Business (Tables)

Nature of Business (Tables)	6 Months Ended
	Jun. 30, 2015
Nature of business
Schedule of the computation of the common shares outstanding used in determining basic and diluted EPS	The following table sets forth the computation of the common shares outstanding used in determining basic and diluted EPS ( Dollar and share amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator for earnings per common share calculation: Net income $ $ $ $ Denominator for earnings per common share calculation: Weighted-average common shares, basic Effect of dilutive securities Stock options, resticted stock and warrants Weighted-average common shares, diluted EPS Basic $ $ $ $ Diluted $ $ $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill and intangible assets
Schedule of goodwill and intangible assets	Goodwill and intangible assets consist of the following at June 30, 2015 and December 31, 2014 ( amounts in thousands ): June 30, December 31, 2015 2014 Broadcast license $ $ Goodwill Other intangibles Total intangible assets $ $
Summary of the changes in goodwill and other indefinite lived intangible assets	A summary of changes in the Company’s goodwill and other indefinite-lived intangible assets, on a net basis, for the six months ended June 30, 2015 is as follows (amounts in thousands ) : Net Balance at December 31, 2014 Additions Impairment Net Balance at June 30, 2015 Broadcast license $ $ — $ — $ Goodwill — — Brands — — Other intangibles — — Total indefinite-lived intangibles $ $ — $ — $
Summary of the changes in other amortizable intangible assets	A summary of the changes in the Company’s other amortizable intangible assets for the six months ended June 30, 2015 is as follows ( amounts in thousands ) : Net Balance at December 31, 2014 Additions Amortization Net Balance at June 30, 2015 Affiliate relationships $ $ — $ ) $ Advertiser Relationships — ) Non-Compete Agreement — ) Other intangibles ) Total Finite-lived intangibles $ $ $ ) $
Schedule of future estimated amortization expense	Future estimated amortization expense is as follows (amounts in thousands): Year Ending December 31, Amount Remainder 2015 $ 2016 2017 2018 2019 2020 2021 and thereafter $

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Long-term debt
Schedule of long-term debt	Long-term debt at June 30, 2015 and 2014 consists of the following (amounts in thousands) : June 30, 2015 December 31, 2014 Senior Notes due July 2020 $ $ Less: Current portion ) ) $ $
Schedule of maturities of long-term debt	The following are the maturities of our long-term debt as of June 30, 2015 ( amounts in thousands ): Year Ending December 31, 2015 $ 2016 2017 2018 2019 and thereafter $

Stockholder's Equity (Tables)

Stockholder's Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Stockholder's equity
Summary of stock option activity	The following table summarizes stock option activity for the six months ended June 30, 2015 (shares and intrinsic value in thousands) : Number of shares Weighted-average exercise price Weighted-average remaining contractual term Aggregate intrinsic value Outstanding at December 31, 2014 $ $ Granted — — Exercised — — — — Forfeited — — — — Expired — — — — Outstanding at June 30, 2015 $ $ Vested at June 30, 2015 $ $ Exercisable at June 30, 2015 $ $
Summary of restricted share activity	The following table summarizes restricted share activity for the six months ended June 30, 2015 ( shares in thousands ): Number of shares Weighted-average grant date fair value Outstanding at December 31, 2014 $ Granted Vested ) Forfeited — — Outstanding at June 30, 2015 $
Time Based Stock Option | Black Scholes Pricing Model
Equity Incentive Plans
Schedule of valuation assumptions	Black-Scholes Option Valuation Assumptions Six Months Ended June 30, 2015 2014 Risk-free interest rate 1.77% - 2.12% 1.76%-1.92% Dividend yield — — Volatility 26.2% - 29.5% 28.4%-30.9% Weighted-average expected term (years) 6.0-6.3

Commitments (Tables)

Commitments (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments
Schedule of future minimum payments for operating leases and other commitments, primarily programming	Future minimum payments for these commitments and other commitments are as follows (amounts in thousands) : Year Ending December 31, Operating Leases Other Commitments Total 2015 $ $ $ 2016 2017 2018 2019 and thereafter Total $ $ $

Nature of Business (Details)

Nature of Business (Details) $ / shares in Units, shares in Thousands, $ in Thousands	Apr. 01, 2014USD ($)item	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)$ / sharesshares	Jun. 30, 2015USD ($)segment$ / sharesshares	Jun. 30, 2014USD ($)$ / sharesshares	Dec. 31, 2014$ / shares
Nature of business
Number of operating segments | segment				1
Nature of Business
Assets acquired in cash | $					$ 101,891
Numerator for earnings (loss) per common share calculation:
Net income (loss) | $		$ 3,431	$ 5,318	$ 5,894	$ 5,566
Denominator for earnings per common share calculation:
Weighted-average common shares, basic		42,737	42,345	42,566	42,259
Effect of dilutive securities:
Stock options and restricted stock		553	173	701	248
Weighted-average common shares, diluted		43,290	42,518	43,267	42,507
EPS
Basic (in dollars per share) | $ / shares		$ 0.08	$ 0.13	$ 0.14	$ 0.13
Diluted (in dollars per share) | $ / shares		$ 0.08	$ 0.13	$ 0.14	$ 0.13
Shares excluded from the computation of diluted income (loss) per common share		1,000		1,000
Common Class A
EPS
Par value of common stock (in dollars per share) | $ / shares		$ 0.0001		$ 0.0001		$ 0.0001
Common Class B
EPS
Par value of common stock (in dollars per share) | $ / shares		$ 0.0001		$ 0.0001		$ 0.0001
Cable Networks Acquisition
Nature of Business
Number of Spanish-language cable television networks whose assets are acquired | item	3
Assets acquired in cash | $	$ 101,900

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	Apr. 09, 2013	Nov. 30, 2013item	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
MVS Multivision Digital Sde RLde CV and Affiliates
Related Party Transactions
Due from related parties, net of allowance for doubtful accounts			$ 3,500		$ 3,500		$ 3,400
Due to related parties			400		$ 400		700
MVS Multivision Digital Sde RLde CV and Affiliates | Satellite and Support Services Agreement | Cinelatino
Related Party Transactions
Number of channel feeds delivered through satellite | item					2
Total expense			500	$ 500	$ 1,100	$ 1,100
MVS Multivision Digital Sde RLde CV and Affiliates | Master License Agreement | Cinelatino
Related Party Transactions
Term of agreement					10 years
Revenue as a percentage of license fees collected from distributors in Latin America and Mexico					13.50%
Revenue recognized from related party			1,200	1,100	$ 2,400	2,200
MVS Multivision Digital Sde RLde CV and Affiliates | Affiliation Agreement | Cinelatino
Related Party Transactions
Revenue recognized from related party			500	500	1,000	900
MVS Multivision Digital Sde RLde CV and Affiliates | Movie License Agreement | Cinelatino
Related Party Transactions
Total expense			0	0
Number of movies licensed | item		6
Programming rights			0		0		0
Director | Consulting Agreement with Director
Related Party Transactions
Total expense			100	100	200	200
Term of agreement	3 years
Due to related parties			0		0		100
Panamax Films, LLC | Programming Agreements
Related Party Transactions
Total expense					$ 0	0
Number of movies licensed | item					3
Programming rights			200		$ 200		200
Pantelion Films | Movie License Agreement | Cinelatino
Related Party Transactions
Total expense			0	0	0	0
Revenue recognized from related party			0	$ 0	0	$ 0
Due to related parties			0		$ 0		$ 0
Pantelion Films | Movie License Agreement | Cinelatino | Maximum
Related Party Transactions
Percentage of rentals agreed to be paid					12.50%
Lions Gate | Movie License Agreement | Cinelatino
Related Party Transactions
Total expense			0		$ 0
Number of movies licensed | item					14
Programming rights			100		$ 100
License fee under agreement with related party			$ 800		$ 800

Goodwill and Intangible Asset24

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Goodwill and intangible assets
Broadcast license	$ 41,356	$ 41,356
Goodwill	164,887	164,887
Other intangibles	84,845	91,611
Total intangible assets	$ 291,088	$ 297,854

Goodwill and Intangible Asset25

Goodwill and Intangible Assets (Details 2) $ in Thousands	Jun. 30, 2015USD ($)
Changes in the goodwill
Net balance at the beginning of the period	$ 164,887
Net balance at the end of the period	164,887
Changes in the goodwill and other indefinite lived intangible assets, on a net basis
Net balance at the beginning of the period	222,929
Net balance at the end of the period	222,929
Broadcast license
Changes in other indefinite lived intangible assets
Net balance at the beginning of the period	41,356
Net balance at the end of the period	41,356
Brands
Changes in other indefinite lived intangible assets
Net balance at the beginning of the period	15,986
Net balance at the end of the period	15,986
Other intangibles
Changes in other indefinite lived intangible assets
Net balance at the beginning of the period	700
Net balance at the end of the period	$ 700

Goodwill and Intangible Asset26

Goodwill and Intangible Assets (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Changes in other amortizable intangible assets
Balance at the beginning of the period			$ 74,925
Additions			17
Amortization	$ (3,300)	$ (3,900)	(6,783)	$ (5,500)
Net balance at the end of the period	68,159		68,159
Future estimated amortization expense
Remainder 2,015	6,700
2,016	13,405
2,017	13,232
2,018	13,175
2,019	8,432
2,020	6,027
2021 and thereafter	7,188
Total	68,159		$ 74,925
Weighted Average
Changes in other amortizable intangible assets
Remaining amortization period			5 years 6 months
Affiliate Relationships
Changes in other amortizable intangible assets
Balance at the beginning of the period			$ 69,064
Amortization			(6,150)
Net balance at the end of the period	62,914		62,914
Future estimated amortization expense
Total	62,914		69,064
Advertiser Relationships
Changes in other amortizable intangible assets
Balance at the beginning of the period			2,896
Amortization			(276)
Net balance at the end of the period	2,620		2,620
Future estimated amortization expense
Total	2,620		2,896
Non-Compete Agreements
Changes in other amortizable intangible assets
Balance at the beginning of the period			2,882
Amortization			(274)
Net balance at the end of the period	2,608		2,608
Future estimated amortization expense
Total	2,608		2,882
Other intangibles
Changes in other amortizable intangible assets
Balance at the beginning of the period			83
Additions			17
Amortization			(83)
Net balance at the end of the period	17		17
Future estimated amortization expense
Total	$ 17		$ 83

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Apr. 01, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income taxes
Annual income tax rate (as a percent)				40.10%	38.80%
Statutory federal income tax rate (as a percent)				35.00%	35.00%
Income tax expense		$ 2,341	$ (1,642)	$ 3,952	$ (1,150)
Cable Networks Acquisition | Foreign Tax Credits
Income Taxes
Change in valuation allowance for deferred tax asset	$ 2,500

Long-Term Debt (Details)

Long-Term Debt (Details) $ in Thousands	Jul. 31, 2014USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Jul. 30, 2013USD ($)item
Long-term debt
Less: current portion		$ (2,250)	$ (2,250)
Long-term debt less current portion		218,607	219,541
Maturities of long-term debt
2,015		1,125
2,016		2,250
2,017		2,250
2,018		2,250
2019 and thereafter		214,875
Total maturities		222,750
Senior Secured Term Loan B Facility
Long-term debt
Long-term Debt		220,857	221,791
Less: current portion		(2,250)	(2,250)
Long-term debt less current portion		218,607	$ 219,541
Amount of term loan	$ 225,000			$ 175,000
Uncommitted accordion option base amount				$ 40,000
Uncommitted accordion option multiplier of 1st lien net leverage | item				4
Interest rate margin (as a percent)	4.00%
Effective interest rate (as a percent)	5.00%
OID (as a percent)	0.50%
OID				$ 1,900
Deferred financing costs		2,500
Accumulated amortization of original issue discount		500
Accumulated amortization		$ 700
Maximum period after each fiscal year for prepayment of debt		90 days
Prepayment of debt as a percentage of excess cash flow		50.00%
First prepayment of debt as a percentage of excess cash flow, if lower leverage ratio is maintained		25.00%
Second prepayment of debt as a percentage of excess cash flow, if lower leverage ratio is maintained		0.00%
Borrowing capacity	$ 20,000
Senior Secured Term Loan B Facility | LIBOR
Long-term debt
Reference rate basis	LIBOR
Interest rate floor (as a percent)	1.00%
Term Loan
Long-term debt
Interest rate margin (as a percent)	5.00%
Term Loan | LIBOR
Long-term debt
Interest rate floor (as a percent)	1.25%

Stockholder's Equity (Details)

Stockholder's Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	May. 31, 2015	Jun. 30, 2015	Jun. 30, 2014
Subsidiary, Sale of Stock [Line Items]
Net proceeds received on sale		$ 5,407	$ 1
Secondary Offering | Common Class A
Subsidiary, Sale of Stock [Line Items]
Number of shares sold	3,195,583
Share price (in dollars per share)	$ 12
Over-Allotment Option | Common Class A
Subsidiary, Sale of Stock [Line Items]
Share price (in dollars per share)	$ 12
Shares issued on sale	479,337
Net proceeds received on sale	$ 5,400

Stockholder's Equity (Details 2

Stockholder's Equity (Details 2) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)item$ / sharesshares	Jun. 30, 2015USD ($)item$ / sharesshares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item$ / sharesshares	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)$ / sharesshares
Stock-Based Compensation
Stock-based compensation expense (in dollars) | $		$ 1,400	$ 1,700	$ 2,700	$ 3,200
Common Class A
Equity Incentive Plans
Shares authorized for issuance	4,000	4,000		4,000
Employee and Directors Stock Options
Stock-Based Compensation
Unrecognized compensation cost related to non-vested stock options (in dollars) | $	$ 2,800	$ 2,800		$ 2,800
Weighted-average periods over which unrecognized compensation cost recognized				2 years
Estimated forfeitures (as a percent)	1.50%	1.50%		1.50%
Number of shares
Outstanding at the beginning of the period (in shares)				1,870
Granted (in shares)				75
Outstanding at the end of the period (in shares)	1,945	1,945		1,945		1,870
Vested at the end of the period (in shares)	1,027	1,027		1,027
Exercisable at the end of the period (in shares)	1,027	1,027		1,027
Weighted-average exercise price
Outstanding at the beginning of the period (in dollars per share) | $ / shares				$ 11.23
Granted (in dollars per share) | $ / shares				13.30
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 11.31	$ 11.31		11.31		$ 11.23
Vested at the end of the period (in dollars per share) | $ / shares	11.30	11.30		11.30
Exercisable at the end of the period (in dollars per share) | $ / shares	$ 11.30	$ 11.30		$ 11.30
Weighted-average remaining contractual term
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2				7 years 10 months 24 days		8 years 4 months 24 days
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2				7 years 10 months 24 days		8 years 4 months 24 days
Vested at the end of the period				7 years 8 months 12 days
Exercisable at the end of the period				7 years 8 months 12 days
Aggregate intrinsic value
Outstanding at the beginning of the period (in dollars) | $				$ 4,721
Outstanding at the end of the period (in dollars) | $	$ 2,296	$ 2,296		2,296		$ 4,721
Vested at the end of the period (in dollars) | $	1,296	1,296		1,296
Exercisable at the end of the period (in dollars) | $	1,296	1,296		$ 1,296
Weighted average grant date fair value of options granted (in dollars per share) | $ / shares				$ 4.36
Valuation assumptions
Dividend yield (as a percent)				0.00%
Restricted Stock
Equity Incentive Plans
Granted (in shares)				74
Stock-Based Compensation
Unrecognized compensation cost related to non-vested restricted stock (in dollars) | $	$ 2,900	$ 2,900		$ 2,900
Weighted-average periods over which unrecognized compensation cost recognized				10 months 24 days
Number of shares
Outstanding at the beginning of the period (in shares)				719
Granted (in shares)				74
Vested (in shares)				(304)
Outstanding at the end of the period (in shares)	489	489		489		719
Weighted-average grant date fair value
Outstanding at the beginning of the period (in dollars per share) | $ / shares				$ 9.82
Granted (in dollars per share) | $ / shares				12.10
Vested (in dollars per share) | $ / shares				10.53
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 9.72	$ 9.72		$ 9.72		$ 9.82
Restricted Stock | Common Class A
Equity Incentive Plans
Shares available for issuance	900	900		900
Time Based Restricted Stock and Stock Option
Equity Incentive Plans
Number of equal annual installments for vesting of awards | item	3	3		3
Time Based Stock Option | Black Scholes Pricing Model
Valuation assumptions
Risk-free interest rate, minimum (as a percent)				1.77%	1.76%
Risk-free interest rate, maximum (as a percent)				2.12%	1.92%
Volatility, minimum (as a percent)				26.20%	28.40%
Volatility, maximum (as a percent)				29.50%	30.90%
Weighted-average expected term				6 years 8 months 12 days
Time Based Stock Option | Minimum | Black Scholes Pricing Model
Valuation assumptions
Weighted-average expected term					6 years
Time Based Stock Option | Maximum | Black Scholes Pricing Model
Valuation assumptions
Weighted-average expected term					6 years 3 months 18 days
Time Based Restricted Stock
Valuation assumptions
Vesting period				3 years
Event Based Restricted Stock and Stock Option | Common Class A
Equity Incentive Plans
Closing price per share to be attained for vesting of awards to begin (in dollars per share) | $ / shares	$ 15
Event Based Restricted Stock and Stock Option | Common Class A | Minimum
Equity Incentive Plans
Number of trading days on which the closing price per share should attain the specified price per share for vesting of awards to begin | item	10	10		10
Event Based Stock Option
Aggregate intrinsic value
Unvested options	300	300		300
Event Based Restricted Stock
Number of shares
Outstanding at the end of the period (in shares)	200	200		200

Stockholder's Equity (Details 3

Stockholder's Equity (Details 3) - Jun. 30, 2015	item$ / shares$ / itemshares
Warrants
Issued (in shares)	14,700,000
Exercise price of warrants per half share | $ / item	6
Outstanding (in shares)	14,700,000
Minimum number of warrants exercisable by holder (in shares)	2
Exercise price of warrants (in dollars per share) | $ / shares	$ 12
Number of warrants that may be called for redemption (in shares)	10,000,000
Number of warrants exercised	0
Common Class A
Warrants
Number of shares entitled to warrant holders (as a percent)	0.5
Warrants exercisable into number of shares	7,300,000
Trigger price of stock in order to provide for redemption of warrants at option of the Company (in dollars per share) | $ / shares	$ 18
Number of trading days through which last sales price of common stock is reported for warrant redemption | item	20
Period of aggregate number of trading days through which last sales price of common stock is reported for warrant redemption	30 days
Number of shares
Outstanding at the end of the period (in shares)	7,300,000

Commitments (Details)

Commitments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Commitments
Rental expense	$ 100	$ 100	$ 300	$ 200
Future minimum payments for operating leases
2,015	127		127
2,016	59		59
2,017	49		49
2,018	48		48
2019 and thereafter	5		5
Total	288		288
Future minimum payments for other commitments
2,015	6,096		6,096
2,016	6,026		6,026
2,017	2,625		2,625
2,018	1,824		1,824
2019 and thereafter	2,001		2,001
Total	18,572		18,572
Future minimum payments for operating leases and other commitments
2,015	6,223		6,223
2,016	6,085		6,085
2,017	2,674		2,674
2,018	1,872		1,872
2019 and thereafter	2,006		2,006
Total	$ 18,860		$ 18,860

Uncategorized Items - hmtv-2015

Label	Element	Value
Depreciation, Depletion and Amortization, Nonproduction	us-gaap_DepreciationAndAmortization	$ 4,265
Depreciation, Depletion and Amortization, Nonproduction	us-gaap_DepreciationAndAmortization	4,832
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	us-gaap_GainLossOnDispositionOfAssets	(16)
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	us-gaap_GainLossOnDispositionOfAssets	$ (34)