Hemisphere Media (HMTV) 10-Q 8 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 07, 2016
Entity Registrant Name	HEMISPHERE MEDIA GROUP, INC.
Entity Central Index Key	1,567,345
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Common Class A
Entity Common Stock, Shares Outstanding		21,607,230
Common Class B
Entity Common Stock, Shares Outstanding		20,800,998

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 150,560	$ 179,532
Accounts receivable, net of allowance for doubtful accounts of $1,626 and $1,512, respectively	24,370	25,519
Due from related parties	1,299	1,722
Programming rights	6,257	5,552
Prepaids and other current assets	8,982	4,541
Total current assets	191,468	216,866
Programming rights	10,496	7,457
Property and equipment, net	25,842	25,397
Deferred financing costs, net	1,879	2,254
Broadcast license	41,356	41,356
Goodwill	164,887	164,887
Other intangibles, net	68,151	78,185
Deferred taxes	16,101	13,280
Other assets	523	1,468
Total Assets	520,703	551,150
Current Liabilities
Accounts payable	2,337	2,463
Due to related parties	331	1,182
Accrued agency commissions	4,717	8,168
Accrued compensation and benefits	4,594	3,995
Accrued marketing	6,611	6,569
Taxes payable	57	1,722
Other accrued expenses	3,425	3,047
Programming rights payable	2,875	4,426
Current portion of long-term debt		8,278
Total current liabilities	24,947	39,850
Programming rights payable	1,793	365
Long-term debt, net of current portion	211,929	211,645
Deferred taxes	17,968	17,928
Defined benefit pension obligation	2,871	2,721
Total Liabilities	259,508	272,509
Stockholders' Equity
Preferred stock, $0.0001 par value; 50,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2016 and December 31, 2015
Additional paid-in capital	258,881	256,551
Treasury stock, at cost 3,599,626 and 236,171 at September 30,2016 and December 31, 2015, respectively	(34,990)	(3,144)
Retained earnings	37,915	25,837
Accumulated comprehensive loss	(615)	(607)
Total Stockholders' Equity	261,195	278,641
Total Liabilities and Stockholders' Equity	520,703	551,150
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	Sep. 30, 2016	Dec. 31, 2015
Accounts receivable, allowance for doubtful accounts	$ 1,626	$ 1,512
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	3,599,626	236,171
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	15,698,493	15,342,440
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidated Statements of Operations
Net revenues	$ 33,116	$ 31,465	$ 99,118	$ 93,554
Operating Expenses:
Cost of revenues	9,826	10,249	30,647	29,609
Selling, general and administrative	8,999	8,907	27,775	26,816
Depreciation and amortization	4,083	4,283	12,500	12,929
Other expenses	638	75	770	381
(Gain) loss on disposition of assets	(9)		6	31
Total operating expenses	23,537	23,514	71,698	69,766
Operating income	9,579	7,951	27,420	23,788
Other Expenses:
Interest expense, net	(2,954)	(3,080)	(8,779)	(9,071)
Income before income taxes	6,625	4,871	18,641	14,717
Income tax expense	(2,276)	(1,961)	(6,563)	(5,912)
Net income	$ 4,349	$ 2,910	$ 12,078	$ 8,805
Earnings per share:
Basic (in dollars per share)	$ 0.11	$ 0.07	$ 0.29	$ 0.21
Diluted (in dollars per share)	$ 0.11	$ 0.07	$ 0.28	$ 0.20
Weighted average shares outstanding:
Basic (in shares)	40,499	43,103	42,057	42,748
Diluted (in shares)	41,035	44,143	42,764	43,563

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 4,349	$ 2,910	$ 12,078	$ 8,805
Other comprehensive income (loss):
Other comprehensive loss			(8)
Comprehensive income	$ 4,349	$ 2,910	$ 12,070	$ 8,805

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Stockholders' Equity - 9 months ended Sep. 30, 2016 - 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, 2015	$ 1	$ 3	$ 256,551	$ (3,144)	$ 25,837	$ (607)	$ 278,641
Balance at the beginning of the period (in shares) at Dec. 31, 2015	15,342	30,027
Consolidated Statements of Changes in Stockholders' Equity
Net income					12,078		12,078
Stock-based compensation			2,522				2,522
Issuance of restricted stock				(1,111)			(1,111)
Issuance of restricted stock (in shares)	308
Repurchases of shares				(30,735)			(30,735)
Repurchase of warrants			(976)				(976)
Exercise of warrants			420				420
Exercise of warrants (in shares)	35
Exercise of stock options			155				155
Exercise of stock options (in shares)	13
Excess tax benefits, option exercise			209				209
Other comprehensive loss						(8)	(8)
Balance at the end of the period at Sep. 30, 2016	$ 1	$ 3	$ 258,881	$ (34,990)	$ 37,915	$ (615)	$ 261,195
Balance at the end of the period (in shares) at Sep. 30, 2016	15,698	30,027

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
Net income	$ 12,078	$ 8,805
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,500	12,929
Program amortization	9,010	8,430
Amortization of deferred financing costs	375	377
Amortization of original issue discount	284	287
Stock-based compensation	2,522	4,123
Provision for bad debts	262	777
Loss on disposition of assets	6	31
Deferred tax expense	(2,781)	(2,046)
Decrease (increase) in:
Accounts receivable	879	350
Due from related parties	423	(114)
Programming rights	(12,754)	(9,427)
Prepaids and other assets	(3,496)	(1,463)
(Decrease) increase in:
Accounts payable	(126)	(243)
Due to related parties	(851)	204
Accrued expenses	(2,432)	2,555
Programming rights payable	(123)	340
Taxes payable	(1,665)	3,240
Other liabilities	150	67
Net cash provided by operating activities	14,261	29,222
Cash Flows From Investing Activities:
Proceeds from sale of assets	10	3
Capital expenditures	(2,927)	(3,885)
Net cash used in investing activities	(2,917)	(3,882)
Cash Flows From Financing Activities:
Repayments of long-term debt	(8,278)	(1,688)
Purchase of treasury stock	(31,846)	(1,079)
Warrants repurchase	(976)
Warrant exercise	420
Proceeds from the issuance of stock		5,407
Exercise of stock options	155	159
Excess tax benefits	209	250
Net cash (used in) provided by financing activities	(40,316)	3,049
Net (decrease) increase in cash	(28,972)	28,389
Cash:
Beginning	179,532	142,010
Ending	150,560	170,399
Cash payments for:
Interest	8,215	8,466
Income taxes	$ 11,230	$ 4,128

Nature of business

Nature of business	9 Months Ended
	Sep. 30, 2016
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 companyof Pasiones, TV Dominicana, and Centroamerica TV. 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 (“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 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 nine months ended September 30, 2016 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, 2016. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. 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 ( amounts in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 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, restricted 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 nine months ended September 30, 2016, 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. For information regarding the conversion of certain shares of Class B common stock to Class A common stock following the end of this fiscal quarter, see Note 9, “Subsequent Events”, of Notes to our Condensed Consolidated Financial Statements, included elsewhere in this Quarterly Report. 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 nine months ended September 30, 2016 and 2015. 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. Reclassification: Certain prior year amounts presented in other accrued expenses have been reclassified to taxes payable on the accompanying condensed consolidated balance sheet, which resulted in an increase to taxes payable to conform with the fiscal 2016 presentation with no impact to current liabilities. Recent accounting pronouncements: In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”, “Update”) 2016-16 — Income Taxes (Topic 740) Intra-entity Transfers of Assets Other Than Inventory. The amendments in this Update do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. ASU 2016-16 aligns the recognition of income tax consequences for intra-entity transfer of assets other than inventory with International Financial Reporting Standards, which require the recognition of current and deferred income taxes resulting from the transfer of any asset when the transfer occurs. The amendments in this update are effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are currently in the process of determining the impact that the updated accounting guidance will have on our consolidated financial statements.

Related party transactions

Related party transactions	9 Months Ended
	Sep. 30, 2016
Related party transactions
Related party transactions	Note 2. Related party transactions The Company has various agreements with MVS, a Mexican media and television conglomerate, which has 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 unaudited condensed consolidated statements of operations. Total expenses incurred were $0.6 million and $0.6 million for the three months ended September 30, 2016 and 2015, respectively, and $1.9 million and $1.6 million for the nine months ended September 30, 2016 and 2015, respectively. · 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 were effective at the time of the consummation of our initial public offering) 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 fee, which is presently equal to 13.5% of all license fees collected from Distributors in Latin America and Mexico. Total revenues recognized were $0.8 million and $1.3 million for the three months ended September 30, 2016 and 2015, respectively, and $3.1 million and $3.7 million for the nine months ended September 30, 2016 and 2015, respectively. MVS has terminated the agreement effective February 29, 2016. We continue to operate under the terms of the terminated agreement until a transition arrangement has been finalized. · An affiliation agreement through August 1, 2017, for the distribution and exhibition of Cinelatino’s programming service through Dish Mexico (d/b/a Comercializadora de Frecuencias Satelitales, S. de R.L. de C.V.), an MVS affiliate that transmits television programming services throughout Mexico. Total revenues recognized were $0.6 million and $0.5 million for the three months ended September 30, 2016 and 2015, respectively, and $1.7 million and $1.5 million for the nine months ended September 30, 2016 and 2015, respectively. · An affiliation agreement, effective July 2015 through January 2018, for the distribution and exhibition of Pasiones’ Latin American programming service through Dish Mexico (d/b/a Comercializadora de Frecuencias Satelitales, S. de R.L. de C.V.), an MVS affiliate that transmits television programming services throughout Mexico. Total revenues recognized were $0.0 million for the three and nine months ended September 30, 2016 and 2015. · In November 2013, Cinelatino licensed six movies from MVS. Expenses incurred under this agreement are included in cost of revenues and amounted to $0.0 million for the three and nine months ended September 30, 2016 and 2015. At September 30, 2016 and December 31, 2015, $0.0 million is included in programming rights related to this agreement. Amounts due from MVS pursuant to the agreements noted above amounted to $1.3 million and $1.7 million at September 30, 2016 and December 31, 2015, respectively, and are remitted monthly. Amounts due to MVS pursuant to the agreements noted above amounted to $0.3 million and $1.1 million at September 30, 2016 and December 31, 2015, 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. We continue to operate under the terms of this agreement, as we renegotiate a new consulting agreement. Total expenses incurred under this agreement are included in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and amounted to $0.1 million for each of the three months ended September 30, 2016 and 2015, and $0.2 million for each of the nine months ended September 30, 2016 and 2015. There were no amounts due to this related party at September 30, 2016 or December 31, 2015. 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 unaudited condensed consolidated statements of operations and amounted to $0.0 million for each of the three and nine months ended September 30, 2016 and 2015. Programming rights in the accompanying condensed consolidated balance sheets included $0.1 million as of September 30, 2016 and December 31, 2015. During 2013, we engaged Pantelion Films, LLC (“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, Lions Gate Films Inc. (“Lions Gate”) and Grupo Televisa. Panamax is owned by James M. 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 unaudited condensed consolidated statements of operations and amounted to $0.0 million for the three months ended September 31, 2016 and 2015, respectively, and $0.1 million and $0.0 million for the nine months ended September 31, 2016 and 2015, respectively. Total expenses incurred are included in cost of revenues in the accompanying unaudited condensed consolidated statements of operations and amounted to $0.0 million for the three and nine months ended September 30, 2016 and 2015. There was $0 due to this related party as of September 30, 2016 and December 31, 2015, respectively. Effective February 1, 2015, we entered into a licensing 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 Pantelion, 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 and $0.1 million for the three and nine months ended September 30, 2016, respectively, and $0 for the three and nine months ended September 30, 2015, respectively. At September 30, 2016, $0.2 million is included in programming rights in the accompanying unaudited condensed consolidated balance sheets related to this agreement. We entered into a services agreement with InterMedia Advisors, LLC (“IMA”), which has officers, directors and stockholders in common with the Company, for the provision of services including, without limitation, office space and operational support pursuant to a reimbursement agreement with IMA’s affiliate, InterMedia Partners VII, L.P. (“IMP”). Amounts due to this related party amounted to $0.1 million and $0.0 million at September 30, 2016 and December 31, 2015, respectively. Amounts receivable from the related party and amounts due to the related party netted to a receivable of $0.1 million and $0.0 million at September 30, 2016 and December 31, 2015, respectively.

Goodwill and intangible assets

Goodwill and intangible assets	9 Months Ended
	Sep. 30, 2016
Goodwill and intangible assets
Goodwill and intangible assets	Note 3. Goodwill and intangible assets Goodwill and intangible assets consist of the following at September 30, 2016 and December 31, 2015 ( amounts in thousands ): September 30, December 31, 2016 2015 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 nine months ended September 30, 2016 is as follows (amounts in thousands) : Net Balance at Additions Impairment Net Balance at 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 nine months ended September 30, 2016 is as follows (amounts in thousands) : Net Balance at Additions Amortization Net Balance at 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 $3.4 million and $3.3 million for the three months ended September 30, 2016 and 2015, respectively and $10.1 million and $10.1 million for the nine months ended September 30, 2016 and 2015, respectively. The weighted average remaining amortization period is 4.4 years at September 30, 2016. Future estimated amortization expense is as follows (amounts in thousands): Year Ending December 31, Amount 2016 $ 2017 2018 2019 2020 and thereafter $

Income taxes

Income taxes	9 Months Ended
	Sep. 30, 2016
Income taxes
Income taxes	Note 4. Income taxes For the nine months ended September 30, 2016 and 2015, our income tax expense has been computed utilizing the estimated annual effective rates of 35.8% and 40.1%, respectively. The decrease in the estimated annual effective tax rate is primarily due to the apportionment of income before income taxes for state income tax purposes in 2016 due to the expansion of our business, which resulted in a reduced state tax rate. The difference between the annual effective rate in both periods and the statutory Federal income tax rate of 35% is primarily due to state income taxes and foreign withholding taxes offset by foreign tax credits. Income tax expense for the three and nine months ended September 30, 2016 was $2.3 million and $6.6 million, respectively. Income tax expense for the three and nine months ended September 30, 2015 was $2.0 million and $5.9 million, respectively.

Long-term debt

Long-term debt	9 Months Ended
	Sep. 30, 2016
Long-term debt
Long-term debt	Note 5. Long-term debt Long-term debt at September 30, 2016 and 2015 consists of the following (amounts in thousands) : September 30, 2016 December 31, 2015 Senior Notes due July 2020 $ $ Less: Current portion — ) $ $ On July 30, 2014, certain of our subsidiaries (the “Borrowers”) entered into an amended credit agreement providing for a $225.0 million senior secured term loan B facility (the “Term Loan Facility”), which matures on July 30, 2020. Pricing on the Term Loan Facility was set at LIBOR plus 400 basis points (subject to a LIBOR floor of 1.00%, resulting in an effective interest rate of 5.00% in the current quarter and 0.5% of original issue discount (“OID”)). The 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 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 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 Term Loan Facility. The Term Loan Facility is secured by a first-priority perfected security interest in substantially all of our assets. The OID of $1.4 million, net of accumulated amortization of $1.0 million at September 30, 2016, 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 Term Loan Facility. We recorded $1.9 million of deferred financing costs associated with the Term Loan Facility, net of accumulated amortization of $1.4 million at September 30, 2016, which will be amortized utilizing the effective interest rate method over the remaining term of the Term Loan Facility. The principal payments on the Term Loan Facility are payable on quarterly due dates, which commenced on September 30, 2014, with a final installment due on July 30, 2020. In addition, pursuant to the terms of the Term Loan Facility, within 90 days after the end of each fiscal year (commencing with the fiscal year ended 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. Pursuant to the terms of our Term Loan Facility, our net leverage ratio was 3.0x at December 31, 2015, resulting in an excess cash flow percentage of 25% being used to determine the principal payment of $8.3 million in March 2016, allocated in direct order of maturity. As a result, we will not be required to make scheduled quarterly principal payments for several quarters. The carrying value of the long-term debt approximates fair value at September 30, 2016 and December 31, 2015 and 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 September 30, 2016 ( amounts in thousands ): Year Ending December 31, 2016 $ — 2017 — 2018 — 2019 2020 $

Stockholders' equity

Stockholders' equity	9 Months Ended
	Sep. 30, 2016
Stockholders' equity
Stockholders' equity	Note 6. Stockholders’ equity Equity incentive plans Effective May 16, 2016, the stockholders of all classes of capital stock of the Company approved at the annual stockholder meeting the Hemisphere Media Group, Inc. Amended and Restated 2013 Equity Incentive Plan (the “2013 Equity Incentive Plan”) to increase the number of shares of Class A common stock that may be delivered under the 2013 Equity Incentive Plan by 3.2 million shares, provide limits on non-employee director awards and additional provisions as set forth therein (a copy of the 2013 Equity Incentive Plan is provided in the Company’s 2016 annual proxy statement). An aggregate of 7.2 million shares of our Class A common stock were authorized for issuance under the terms of the Equity Incentive Plan. At September 30, 2016, 4.0 million shares remained available for issuance of stock options or other stock-based awards under our 2013 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, which are available for re-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, or a committee thereof, 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; and (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 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. Stock-based compensation Stock-based compensation expense related to stock options and restricted stock was $0.5 million and $1.4 million for the three months ended September 30, 2016 and 2015, respectively, and $2.5 million and $4.1 million for the nine months ended September 30, 2016 and 2015, respectively. At September 30, 2016, there was $1.3 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 1.9 years. At September 30, 2016, there was $0.8 million of total unrecognized compensation cost related to unvested 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 option 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 granted 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 Nine Months Ended Year Ended Risk-free interest rate % 1.76%-2.12% Dividend yield — — Volatility % 25.8%-29.5% Weighted-average expected term (years) The following table summarizes stock option activity for the nine months ended September 30, 2016 (shares and intrinsic value in thousands) : Number of shares Weighted-average Weighted-average Aggregate intrinsic Outstanding at December 31, 2015 $ $ Granted — — Exercised ) — — Forfeited — — — — Expired — — — — Outstanding at September 30, 2016 $ $ Vested at September 30, 2016 $ $ Exercisable at September 30, 2016 $ $ The weighted-average grant date fair value of options granted for the nine months ended September 30, 2016 was $3.96. At September 30, 2016, 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 nine months ended September 30, 2016 ( shares in thousands ): Number of shares Weighted-average Outstanding at December 31, 2015 $ Granted Vested ) Forfeited — — Outstanding at September 30, 2016 $ At September 30, 2016, 0.2 million shares of restricted stock issued were unvested, event-based shares. Warrants At September 30, 2016, 12.3 million warrants, exercisable into 6.1 million shares of our Class A common stock, were issued and outstanding. 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. Warrants may be exercised only through the date of expiration and 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, 7.6 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 20 trading days within the 30-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 nine months ended September 30, 2016, we repurchased 1.0 million warrants for $1.0 million, and we issued 35,000 shares of Class A common stock upon the exercise of 70,000 warrants for total exercise proceeds of $0.4 million.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2016
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 adversely affect our financial condition.

Commitments

Commitments	9 Months Ended
	Sep. 30, 2016
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 $0.2 million and $0.2 million for the three months ended September 30, 2016 and 2015, respectively, and $0.5 million and $0.4 million for the nine months ended September 30, 2016 and 2015, respectively. We have certain commitments including various operating leases. Future minimum payments for these commitments and other commitments, primarily programming, are as follows (amounts in thousands) : Year Ending December 31, Operating Leases Other Total Remainder of 2016 $ $ $ 2017 2018 2019 2020 and thereafter Total $ $ $

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events
Subsequent Events	Note 9. Subsequent Events On October 21, 2016, our controlling stockholder, IMP closed a transaction that provided liquidity options to its limited partners in respect of shares of our Class B common stock and warrants to purchase Class A common stock held by IMP and its affiliates (the “IMP Liquidity Transaction”). Upon the consummation of the IMP Liquidity Transaction, 9,226,420 shares of our Class B common stock were converted into an equal number of shares of our Class A common stock (including 419,383 shares subject to forfeiture if the market price of shares of our Class A common stock does not equal or exceed $15.00 per share for any 20 trading days within at least one 30-trading day period prior to April 4, 2018). Upon the consummation of the IMP Liquidity Transaction, we had 21,607,230 shares of our Class A common stock (including 544,383 shares of our Class A common stock subject to forfeiture described above) and 20,800,998 shares of our Class B common stock (including 1,080,617 shares of our Class B common stock subject to forfeiture described above) issued and outstanding. On November 3, 2016, we announced our partnership in a new joint venture with LionsGate to launch a Spanish – language subscription video on demand (SVOD) movie service. The service plans to launch later in fiscal year ending December 31, 2017.

Nature of business (Policies)

Nature of business (Policies)	9 Months Ended
	Sep. 30, 2016
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 (“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 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 nine months ended September 30, 2016 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, 2016. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015.
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 ( amounts in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 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, restricted 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 nine months ended September 30, 2016, 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. For information regarding the conversion of certain shares of Class B common stock to Class A common stock following the end of this fiscal quarter, see Note 9, “Subsequent Events”, of Notes to our Condensed Consolidated Financial Statements, included elsewhere in this Quarterly Report.
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 nine months ended September 30, 2016 and 2015. 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.
Reclassification:	Reclassification: Certain prior year amounts presented in other accrued expenses have been reclassified to taxes payable on the accompanying condensed consolidated balance sheet, which resulted in an increase to taxes payable to conform with the fiscal 2016 presentation with no impact to current liabilities.
Recent accounting pronouncements:	Recent accounting pronouncements: In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”, “Update”) 2016-16 — Income Taxes (Topic 740) Intra-entity Transfers of Assets Other Than Inventory. The amendments in this Update do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. ASU 2016-16 aligns the recognition of income tax consequences for intra-entity transfer of assets other than inventory with International Financial Reporting Standards, which require the recognition of current and deferred income taxes resulting from the transfer of any asset when the transfer occurs. The amendments in this update are effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are currently in the process of determining the impact that the updated accounting guidance will have on our consolidated financial statements.

Nature of business (Tables)

Nature of business (Tables)	9 Months Ended
	Sep. 30, 2016
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 ( amounts in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 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, restricted stock and warrants Weighted-average common shares, diluted EPS Basic $ $ $ $ Diluted $ $ $ $

Goodwill and intangible assets

Goodwill and intangible assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and intangible assets
Schedule of goodwill and intangible assets	Goodwill and intangible assets consist of the following at September 30, 2016 and December 31, 2015 ( amounts in thousands ): September 30, December 31, 2016 2015 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 nine months ended September 30, 2016 is as follows (amounts in thousands) : Net Balance at Additions Impairment Net Balance at 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 nine months ended September 30, 2016 is as follows (amounts in thousands) : Net Balance at Additions Amortization Net Balance at 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 2016 $ 2017 2018 2019 2020 and thereafter $

Long-term debt (Tables)

Long-term debt (Tables)	9 Months Ended
	Sep. 30, 2016
Long-term debt
Schedule of long-term debt	Long-term debt at September 30, 2016 and 2015 consists of the following (amounts in thousands) : September 30, 2016 December 31, 2015 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 September 30, 2016 ( amounts in thousands ): Year Ending December 31, 2016 $ — 2017 — 2018 — 2019 2020 $

Stockholders' equity (Tables)

Stockholders' equity (Tables)	9 Months Ended
	Sep. 30, 2016
Equity incentive plans
Summary of stock option activity	The following table summarizes stock option activity for the nine months ended September 30, 2016 (shares and intrinsic value in thousands) : Number of shares Weighted-average Weighted-average Aggregate intrinsic Outstanding at December 31, 2015 $ $ Granted — — Exercised ) — — Forfeited — — — — Expired — — — — Outstanding at September 30, 2016 $ $ Vested at September 30, 2016 $ $ Exercisable at September 30, 2016 $ $
Summary of restricted share activity	The following table summarizes restricted share activity for the nine months ended September 30, 2016 ( shares in thousands ): Number of shares Weighted-average Outstanding at December 31, 2015 $ Granted Vested ) Forfeited — — Outstanding at September 30, 2016 $
Time Based Stock Option | Black Scholes Pricing Model
Equity incentive plans
Schedule of valuation assumptions	Black-Scholes Option Valuation Assumptions Nine Months Ended Year Ended Risk-free interest rate % 1.76%-2.12% Dividend yield — — Volatility % 25.8%-29.5% Weighted-average expected term (years)

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments
Schedule of future minimum payments for operating leases and other commitments, primarily programming	Future minimum payments for these commitments and other commitments, primarily programming, are as follows (amounts in thousands) : Year Ending December 31, Operating Leases Other Total Remainder of 2016 $ $ $ 2017 2018 2019 2020 and thereafter Total $ $ $

Nature of business (Details)

Nature of business (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2015USD ($)$ / sharesshares	Sep. 30, 2016USD ($)segment$ / sharesshares	Sep. 30, 2015USD ($)$ / sharesshares	Dec. 31, 2015$ / shares
Nature of business
Number of operating segments | segment			1
Numerator for earnings per common share calculation:
Net income | $	$ 4,349	$ 2,910	$ 12,078	$ 8,805
Denominator for earnings per common share calculation:
Weighted-average common shares, basic | shares	40,499	43,103	42,057	42,748
Effect of dilutive securities:
Stock options, restricted stock and warrants | shares	536	1,040	707	815
Weighted-average common shares, diluted | shares	41,035	44,143	42,764	43,563
EPS
Basic (in dollars per share) | $ / shares	$ 0.11	$ 0.07	$ 0.29	$ 0.21
Diluted (in dollars per share) | $ / shares	$ 0.11	$ 0.07	$ 0.28	$ 0.20
Shares excluded from the computation of diluted income (loss) per common share | shares	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

Related party transactions (Det

Related party transactions (Details) $ in Millions	Apr. 09, 2013	Nov. 30, 2013item	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)item	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
MVS Multivision Digital Sde RLde CV and Affiliates
Related party transactions
Due from related parties, net of allowance for doubtful accounts			$ 1.3		$ 1.3		$ 1.7
Due to related parties			0.3		$ 0.3		1.1
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			0.6	$ 0.6	$ 1.9	$ 1.6
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			0.8	1.3	$ 3.1	3.7
MVS Multivision Digital Sde RLde CV and Affiliates | Affiliation Agreement | Cinelatino
Related party transactions
Revenue recognized from related party			0.6	0.5	1.7	1.5
MVS Multivision Digital Sde RLde CV and Affiliates | Affiliation Agreement | Pasiones
Related party transactions
Revenue recognized from related party			0	0	0	0
MVS Multivision Digital Sde RLde CV and Affiliates | Movie License Agreement | Cinelatino
Related party transactions
Total expense			0	0	0	0
Number of movies licensed | item		6
Programming rights			0		0		0
Director | Consulting Agreement with Director
Related party transactions
Total expense			0.1	0.1	0.2	0.2
Term of agreement	3 years
Due to related parties			0		0		0
Panamax Films, LLC | Programming Agreements
Related party transactions
Total expense				0	$ 0	0
Number of movies licensed | item					3
Programming rights			0.1		$ 0.1		0.1
Pantelion Films | Movie License Agreement | Cinelatino
Related party transactions
Total expense			0	0	0	0
Revenue recognized from related party			0	0	0.1	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	$ 0.1	$ 0
Number of movies licensed | item					14
Programming rights			0.2		$ 0.2
License fee under agreement with related party			0.8		0.8
Inter Media Advisors LLC | Services Agreement
Related party transactions
Total expense					0.1		0
Due to related parties			$ 0.1		$ 0.1		$ 0

Goodwill and intangible asset25

Goodwill and intangible assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Goodwill and intangible assets
Broadcast license	$ 41,356	$ 41,356
Goodwill	164,887	164,887
Other intangibles	68,151	78,185
Total intangible assets	$ 274,394	$ 284,428

Goodwill and intangible asset26

Goodwill and intangible assets - Indefinite Lived Net Balance (Details) $ in Thousands	Sep. 30, 2016USD ($)
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 asset27

Goodwill and intangible assets - Other Amortizable Intangible (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016
Changes in other amortizable intangible assets
Balance at the beginning of the period			$ 61,499
Additions			39
Amortization	$ (3,400)	$ (3,300)	(10,073)	$ (10,100)
Net balance at the end of the period	51,465		51,465
Future estimated amortization expense
2,016					$ 3,357
2,017					13,262
2,018					13,196
2,019					8,432
2020 and thereafter					13,218
Total	51,465		$ 61,499		51,465
Weighted Average
Future estimated amortization expense
Remaining amortization period			4 years 4 months 24 days
Affiliate relationships
Changes in other amortizable intangible assets
Balance at the beginning of the period			$ 56,766
Amortization			(9,224)
Net balance at the end of the period	47,542		47,542
Future estimated amortization expense
Total	47,542		56,766		47,542
Advertiser relationships
Changes in other amortizable intangible assets
Balance at the beginning of the period			2,344
Amortization			(414)
Net balance at the end of the period	1,930		1,930
Future estimated amortization expense
Total	1,930		2,344		1,930
Non-compete agreements
Changes in other amortizable intangible assets
Balance at the beginning of the period			2,333
Amortization			(412)
Net balance at the end of the period	1,921		1,921
Future estimated amortization expense
Total	1,921		2,333		1,921
Other intangibles
Changes in other amortizable intangible assets
Balance at the beginning of the period			56
Additions			39
Amortization			(23)
Net balance at the end of the period	72		72
Future estimated amortization expense
Total	$ 72		$ 56		$ 72

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income taxes
Income tax (expense) benefit	$ 2,276	$ 1,961	$ 6,563	$ 5,912
Effective tax rates reconciliation
Statutory federal income tax rate (as a percent)			35.00%	35.00%
Annual income tax rate (as a percent)			35.80%	40.10%

Long-term debt (Details)

Long-term debt (Details) $ in Thousands	Jul. 31, 2014USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)item	Jul. 30, 2014USD ($)	Jul. 30, 2013USD ($)item
Long-term debt
Less: Current portion			$ (8,278)
Long-term debt less current portion		$ 211,929	211,645
Maturities of long-term debt
2,019		722
2,020		212,625
Total maturities		213,347
Senior Secured Term Loan B Facility
Long-term debt
Long-term Debt		211,929	219,923
Less: Current portion			(8,278)
Long-term debt less current portion		211,929	$ 211,645
Amount of term loan				$ 225,000
Uncommitted accordion option base amount					$ 40,000
Uncommitted accordion option multiplier of 1st lien net leverage | item			3		4
Interest rate margin (as a percent)	4.00%
Effective interest rate (as a percent)	5.00%
OID (as a percent)	0.50%
OID		1,400
Deferred financing costs		1,900
Accumulated amortization of original issue discount		1,000
Accumulated amortization		$ 1,400
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%
Principal payment		$ 8,300
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%

Stockholders' equity - (Details

Stockholders' equity - (Details) $ / shares in Units, shares in Thousands, $ in Thousands	May 16, 2016shares	Sep. 30, 2016USD ($)item$ / sharesshares	Sep. 30, 2016USD ($)item$ / sharesshares	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)item$ / sharesshares	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)$ / sharesshares
Stock-based compensation
Stock-based compensation expense (in dollars) | $			$ 500	$ 1,400	$ 2,500	$ 4,100
Common Class A
Equity incentive plans
Shares authorized for issuance		7,200	7,200		7,200
Employee and Directors Stock Options
Stock-based compensation
Unrecognized compensation cost related to unvested stock options (in dollars) | $		$ 1,300	$ 1,300		$ 1,300
Weighted-average periods over which unrecognized compensation cost recognized					1 year 10 months 24 days
Estimated forfeitures (as a percent)		1.50%	1.50%		1.50%
Number of shares
Outstanding at the beginning of the period (in shares)					2,043
Granted (in shares)					30
Outstanding at the end of the period (in shares)		2,060	2,060		2,060		2,043
Vested at the end of the period (in shares)		1,487	1,487		1,487
Exercisable at the end of the period (in shares)		1,487	1,487		1,487
Exercised (in shares)					(13)
Weighted-average exercise price
Outstanding at the beginning of the period (in dollars per share) | $ / shares					$ 11.49
Granted (in dollars per share) | $ / shares					13.64
Outstanding at the end of the period (in dollars per share) | $ / shares		$ 11.53	$ 11.53		11.53		$ 11.49
Vested at the end of the period (in dollars per share) | $ / shares		11.52	11.52		11.52
Exercisable at the end of the period (in dollars per share) | $ / shares		$ 11.52	$ 11.52		11.52
Exercised (in dollars per share) | $ / shares					$ 10.60
Weighted-average remaining contractual term
Outstanding					6 years 10 months 24 days		7 years 7 months 6 days
Outstanding at the end of the period					6 years 10 months 24 days		7 years 7 months 6 days
Vested at the end of the period					6 years 8 months 12 days
Exercisable at the end of the period					6 years 8 months 12 days
Aggregate intrinsic value
Outstanding at the beginning of the period (in dollars) | $					$ 6,740
Outstanding at the end of the period (in dollars) | $		$ 3,466	$ 3,466		3,466		$ 6,740
Vested at the end of the period (in dollars) | $		2,597	2,597		2,597
Exercisable at the end of the period (in dollars) | $		2,597	2,597		$ 2,597
Weighted-average grant date fair value of options granted (in dollars per share) | $ / shares					$ 3.96
Valuation assumptions
Dividend yield (as a percent)					0.00%
Restricted Stock
Stock-based compensation
Unrecognized compensation cost related to unvested restricted stock (in dollars) | $		$ 800	$ 800		$ 800
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)					494
Granted (in shares)					79
Vested (in shares)					(308)
Outstanding at the end of the period (in shares)		265	265		265		494
Weighted-average grant date fair value
Outstanding at the beginning of the period (in dollars per share) | $ / shares					$ 9.79
Granted (in dollars per share) | $ / shares					11.41
Vested (in dollars per share) | $ / shares					10.78
Outstanding at the end of the period (in dollars per share) | $ / shares		$ 9.13	$ 9.13		$ 9.13		$ 9.79
Restricted Stock | Common Class A
Equity incentive plans
Additional of number of shares authorized to issue	3,200
Shares available for issuance		4,000	4,000		4,000
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)						1.76%
Risk-free interest rate, maximum (as a percent)						2.12%
Risk-free interest rates (as a percent)					1.60%
Volatility, minimum (as a percent)						25.80%
Volatility, maximum (as a percent)						29.50%
Volatility (as a percent)					26.37%
Weighted-average expected term					6 years	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

Stockholders' equity - Warrants

Stockholders' equity - Warrants (Details) - 9 months ended Sep. 30, 2016 $ / shares in Units, $ in Thousands	USD ($)item$ / sharesshares	$ / shares$ / itemshares
Warrants
Exercise price of warrants per half share | $ / item		6
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)	7,600,000
Number of warrants repurchased	1,000,000
Proceeds from exercise of warrant | $	$ 420
Common Class A
Warrants
Issued (in shares)		12,300,000
Outstanding (in shares)		12,300,000
Number of shares entitled to warrant holders (as a percent)		0.5
Warrants exercisable into number of shares	6,100,000	6,100,000
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
Shares issued upon exercise of warrants	35,000
Number of warrants exercised	70,000
Proceeds from exercise of warrant | $	$ 400
Number of shares
Outstanding at the end of the period (in shares)	6,100,000

Commitments (Details)

Commitments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Commitments
Rental expense	$ 200	$ 200	$ 500	$ 400
Future minimum payments for operating leases
Remainder of 2016	115		115
2,017	420		420
2,018	425		425
2,019	419		419
2020 and thereafter	1,340		1,340
Total	2,719		2,719
Future minimum payments for other commitments
Remainder of 2016	2,653		2,653
2,017	4,121		4,121
2,018	2,539		2,539
2,019	1,256		1,256
2020 and thereafter	631		631
Total	11,200		11,200
Future minimum payments for operating leases and other commitments
Remainder of 2016	2,768		2,768
2,017	4,541		4,541
2,018	2,964		2,964
2,019	1,675		1,675
2020 and thereafter	1,971		1,971
Total	$ 13,919		$ 13,919

Subsequent Events (Details)

Subsequent Events (Details)	Oct. 21, 2016item$ / sharesshares	Sep. 30, 2016shares	Dec. 31, 2015shares
Common Class B
Subsequent events
Common stock, shares issued		30,027,418	30,027,418
Common stock, shares outstanding		30,027,418	30,027,418
Common Class A
Subsequent events
Common stock, shares issued		15,698,493	15,342,440
Subsequent event | Common Class B
Subsequent events
Common stock, shares issued	20,800,998
Common stock, shares outstanding	20,800,998
Number of shares subject to forfeiture	1,080,617
Subsequent event | Common Class A
Subsequent events
Common stock, shares issued	21,607,230
Common stock, shares outstanding	21,607,230
Number of shares subject to forfeiture	544,383
Subsequent event | Controlling stockholder | InterMedia Partners VII, L.P. ("IMP") | Common Class B
Subsequent events
Number of shares converted	9,226,420
Subsequent event | Controlling stockholder | InterMedia Partners VII, L.P. ("IMP") | Common Class A
Subsequent events
Number of shares issued on stock conversion	9,226,420
Number of shares subject to forfeiture issued on conversion of stock	419,383
Market price per share to be achieved for avoiding forfeiture | $ / shares	$ 15
Number of trading days considered during consecutive trading day period | item	20
Consecutive trading day period during which common stock price should equal or exceed threshold price	30 days