Exhibit 99.1
INTEREP NATIONAL RADIO SALES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)
September 30, 2004 | ||||||||||||
As Reported | Adjustment | Restated | ||||||||||
(unaudited) | (unaudited) | |||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 15,023 | $ | — | $ | 15,023 | ||||||
Receivables, less allowance for doubtful accounts of $754 and $808, respectively | 21,685 | — | 21,685 | |||||||||
Representation contract buyouts receivable | 400 | — | 400 | |||||||||
Current portion of deferred representation contract costs | 13,866 | — | 13,866 | |||||||||
Prepaid expenses and other current assets | 1,205 | — | 1,205 | |||||||||
Total current assets | 52,179 | — | 52,179 | |||||||||
Fixed assets, net | 3,705 | — | 3,705 | |||||||||
Deferred representation contract costs | 35,865 | — | 35,865 | |||||||||
Representation contract buyouts receivable | 646 | — | 646 | |||||||||
Investments and other assets | 5,504 | (561 | ) | 4,943 | ||||||||
Total assets | $ | 97,899 | $ | (561 | ) | $ | 97,338 | |||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable and accrued expenses | $ | 25,836 | $ | — | $ | 25,836 | ||||||
Accrued interest | 2,475 | — | 2,475 | |||||||||
Representation contract buyouts payable | 5,245 | — | 5,245 | |||||||||
Accrued employee-related liabilities | 2,643 | — | 2,643 | |||||||||
Total current liabilities | 36,199 | — | 36,199 | |||||||||
Long-term debt | 99,000 | — | 99,000 | |||||||||
Representation contract buyouts payable | 3,627 | — | 3,627 | |||||||||
Other noncurrent liabilities | 2,393 | — | 2,393 | |||||||||
Shareholders’ deficit: | ||||||||||||
4% Series A cumulative convertible preferred stock, $0.01 par value – 400,000 shares authorized, 118,598 and 114,037 shares issued and outstanding at September 30, 2004 and December 31, 2003, respectively (aggregate liquidation preference – $11,859) | 1 | — | 1 | |||||||||
Class A common stock, $0.01 par value – 20,000,000 shares authorized, 6,626,270 and 6,189,460 shares issued and outstanding at September 30, 2004 and December 31, 2003, respectively | 66 | — | 66 | |||||||||
Class B common stock, $0.01 par value – 10,000,000 shares authorized, 4,225,871 and 4,058,699 shares issued and outstanding at September 30, 2004 and December 31, 2003, respectively | 42 | — | 42 | |||||||||
Additional paid-in-capital | 52,330 | — | 52,330 | |||||||||
Accumulated deficit | (95,759 | ) | (561 | ) | (96,320 | ) | ||||||
Total shareholders’ deficit | (43,320 | ) | (561 | ) | (43,881 | ) | ||||||
Total liabilities and shareholders’ deficit | $ | 97,899 | $ | (561 | ) | $ | 97,338 | |||||
INTEREP NATIONAL RADIO SALES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended September 30, 2004 | |||||||||||
As reported | Adjustment | Restated | |||||||||
Commission revenues | $ | 18,556 | $ | — | $ | 18,556 | |||||
Contract termination revenue | 18,844 | — | 18,844 | ||||||||
Total revenues | 37,400 | — | 37,400 | ||||||||
Operating expenses: | |||||||||||
Selling expenses | 15,964 | — | 15,964 | ||||||||
General and administrative expenses | 3,576 | — | 3,576 | ||||||||
Depreciation and amortization expense | 4,829 | — | 4,829 | ||||||||
Total operating expenses | 24,369 | — | 24,369 | ||||||||
Operating income | 13,031 | — | 13,031 | ||||||||
Interest expense, net | 2,634 | — | 2,634 | ||||||||
Income on investment | — | 37 | 37 | ||||||||
Income before income taxes and cumulative change in accounting principle | 10,397 | 37 | 10,434 | ||||||||
Income taxes | 35 | 35 | |||||||||
Income before cumulative change in accounting principle | 10,362 | 37 | 10,399 | ||||||||
Cumulative change in accounting principle | — | (598 | ) | (598 | ) | ||||||
Net loss | 10,362 | (561 | ) | 9,801 | |||||||
Preferred stock dividend | 119 | — | 119 | ||||||||
Net income (loss) applicable to common shareholders | $ | 10,243 | $ | (561 | ) | $ | 9,682 | ||||
Basic and fully diluted income (loss) per share applicable to common shareholders | $ | 0.94 | $ | (0.05 | ) | $ | 0.89 |
INTEREP NATIONAL RADIO SALES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Nine month ended September 30, 2004 | ||||||||||||
As reported | Adjustment | Restated | ||||||||||
Commission revenues | $ | 56,077 | $ | — | $ | 56,077 | ||||||
Contract termination revenue | 20,008 | — | 20,008 | |||||||||
Total revenues | 76,085 | — | 76,085 | |||||||||
Operating expenses: | ||||||||||||
Selling expenses | 46,614 | — | 46,614 | |||||||||
General and administrative expenses | 10,972 | — | 10,972 | |||||||||
Depreciation and amortization expense | 15,045 | — | 15,045 | |||||||||
Total operating expenses | 72,631 | — | 72,631 | |||||||||
Operating income | 3,454 | — | 3,454 | |||||||||
Interest expense, net | 7,952 | — | 7,952 | |||||||||
Income on investment | — | 37 | 37 | |||||||||
(Loss) income before income taxes and cumulative change in accounting principle | (4,498 | ) | 37 | (4,461 | ) | |||||||
Income taxes | 227 | 227 | ||||||||||
(Loss) income before cumulative change in accounting principle | (4,725 | ) | 37 | (4,688 | ) | |||||||
Cumulative change in accounting principle | — | (598 | ) | (598 | ) | |||||||
Net loss | (4,725 | ) | (561 | ) | (5,286 | ) | ||||||
Preferred stock dividend | 350 | — | 350 | |||||||||
Net loss applicable to common shareholders | $ | (5,075 | ) | $ | (561 | ) | $ | (5,636 | ) | |||
Basic and fully diluted loss per share applicable to common shareholders | $ | (0.48 | ) | $ | (0.05 | ) | $ | (0.53 | ) |
INTEREP NATIONAL RADIO SALES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine months ended September 30, 2004 | ||||||||||||
As reported | Adjustment | Restated | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (4,725 | ) | $ | (561 | ) | $ | (5,286 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 15,045 | — | 15,045 | |||||||||
Income on investment | — | (37 | ) | (37 | ) | |||||||
Cumulative change in accounting principle | — | 598 | 598 | |||||||||
Changes in assets and liabilities: | ||||||||||||
Receivables | 5,900 | — | 5,900 | |||||||||
Representation contract buyouts receivable | (578 | ) | — | (578 | ) | |||||||
Prepaid expenses and other current assets | (93 | ) | — | (93 | ) | |||||||
Other noncurrent assets | (202 | ) | — | (202 | ) | |||||||
Accounts payable and accrued expenses | 5,678 | — | 5,678 | |||||||||
Accrued interest | (2,475 | ) | — | (2,475 | ) | |||||||
Accrued employee-related liabilities | (670 | ) | — | (670 | ) | |||||||
Other noncurrent liabilities | (1,487 | ) | — | (1,487 | ) | |||||||
Net cash provided by operating activities | 16,393 | — | 16,393 | |||||||||
Cash flows from investing activities: | ||||||||||||
Additions to fixed assets | (817 | ) | — | (817 | ) | |||||||
Increase in other investments | (5 | ) | — | (5 | ) | |||||||
Net cash used in investing activities | (822 | ) | — | (822 | ) | |||||||
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Cash flows from financing activities: | ||||||||||||
Station representation contract payments | (5,289 | ) | — | (5,289 | ) | |||||||
Gross borrowings on credit facility | 21,650 | — | 21,650 | |||||||||
Gross repayments on credit facility | (25,650 | ) | — | (25,650 | ) | |||||||
Repayment of prior credit facility | — | — | — | |||||||||
Issuance of Class B common stock | 1,080 | — | 1,080 | |||||||||
Net borrowings on new credit facility, net of financing costs | — | — | — | |||||||||
Net cash used in financing activities | (8,209 | ) | — | (8,209 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 7,362 | — | 7,362 | |||||||||
Cash and cash equivalents, beginning of period | 7,661 | — | 7,661 | |||||||||
Cash and cash equivalents, end of period | $ | 15,023 | $ | — | $ | 15,023 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 10,146 | — | $ | 10,146 | |||||||
Income taxes | 227 | — | 227 | |||||||||
Non-cash investing and financing activities: | ||||||||||||
Station representation contracts acquired | $ | 2,106 | — | $ | 2,106 | |||||||
Preferred stock dividend | 350 | — | 350 |