☒ | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||
For the fiscal year ended December 31, 2021, or | |||||
☐ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________ to _________. |
Delaware | 26-0241222 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
20880 Stone Oak Parkway | ||||||||
San Antonio, | Texas | 78258 | ||||||
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A Common Stock, par value $0.001 per share | IHRT | The Nasdaq Stock Market LLC |
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐ | ||
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒ | ||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ | ||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).Yes ☒ No ☐ | ||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated Filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒ | ||
Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ☐ No ☒ | ||
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ No ☐ | ||
The aggregate market value of the Class A Common Stock held by non-affiliates of the registrant, based on the closing sales price of $26.93 on June 30, 2021, was approximately $2.6 billion. | ||
On February 18, 2022, there were 120,270,406 outstanding shares of Class A common stock, 21,589,449 outstanding shares of Class B common stock, and 5,293,069 outstanding Special Warrants. | ||
Page Number | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Item 9C. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 16. |
Nielsen Market Rank(1) | Market | Number of Stations | ||||||||||||
1 | New York, NY | 7 | ||||||||||||
2 | Los Angeles, CA | 8 | ||||||||||||
3 | Chicago, IL | 6 | ||||||||||||
4 | San Francisco, CA | 6 | ||||||||||||
5 | Dallas-Ft. Worth, TX | 8 | ||||||||||||
6 | Houston-Galveston, TX | 7 | ||||||||||||
7 | Atlanta, GA | 7 | ||||||||||||
8 | Washington, DC | 6 | ||||||||||||
9 | Philadelphia, PA | 6 | ||||||||||||
10 | Boston, MA | 8 | ||||||||||||
11 | Seattle-Tacoma, WA | 8 | ||||||||||||
12 | Miami-Ft. Lauderdale-Hollywood, FL | 8 | ||||||||||||
13 | Detroit, MI | 6 | ||||||||||||
14 | Phoenix, AZ | 8 | ||||||||||||
15 | Minneapolis-St. Paul, MN | 6 | ||||||||||||
17 | San Diego, CA | 8 | ||||||||||||
18 | Tampa-St. Petersburg-Clearwater, FL | 8 | ||||||||||||
19 | Denver-Boulder, CO | 8 | ||||||||||||
20 | Nassau-Suffolk, NY | 1 | ||||||||||||
21 | Baltimore, MD | 4 | ||||||||||||
22 | Portland, OR | 7 | ||||||||||||
23 | Charlotte-Gastonia-Rock Hill, NC-SC | 4 | ||||||||||||
24 | St. Louis, MO | 6 | ||||||||||||
25 | San Antonio, TX | 7 | ||||||||||||
Total Top 25 Markets | 157(2) | |||||||||||||
Name | Age | Position at iHeartMedia | Principal Employment | |||||||||||||||||
Robert W. Pittman | 68 | Chairman and Chief Executive Officer | Same | |||||||||||||||||
Richard J. Bressler | 64 | President, Chief Operating Officer, Chief Financial Officer and Director | Same | |||||||||||||||||
Brad Gerstner | 50 | Director | Chief Executive Officer and Chief Investment Officer of Altimeter Capital Management, LP, a technology focused investment firm | |||||||||||||||||
Cheryl Mills | 57 | Director | Founder and Chief Executive Officer of the BlackIvy Group LLC, a private holding company that grows and builds businesses in Sub-Saharan Africa | |||||||||||||||||
Graciela Monteagudo | 55 | Director | Former Chief Executive Officer of LALA U.S., a producer and distributor of dairy-based products | |||||||||||||||||
James A. Rasulo | 66 | Director | Former Chief Financial Officer and Senior Executive Vice President at Walt Disney Company, a global mass media and entertainment conglomerate | |||||||||||||||||
Kamakshi Sivaramakrishnan | 46 | Director | Leading an integration and identity charter at LinkedIn, an employment technology services company | |||||||||||||||||
Michael B. McGuinness | 45 | Executive Vice President – Finance and Deputy Chief Financial Officer | Same | |||||||||||||||||
Scott D. Hamilton | 52 | Senior Vice President, Chief Accounting Officer and Assistant Secretary | Same | |||||||||||||||||
Jordan R. Fasbender | 39 | Executive Vice President, General Counsel and Secretary | Same |
7/18/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | 3/31/21 | 6/30/21 | 9/30/21 | 12/31/21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
iHeartMedia, Inc. | $ | 1,000 | $ | 1,024 | $ | 443 | $ | 506 | $ | 492 | $ | 787 | $ | 1,100 | $ | 1,632 | $ | 1,516 | $ | 1,275 | ||||||||||||||||||||||||||||||||||||||||||
Radio Index* | 1,000 | 860 | 422 | 439 | 344 | 489 | 817 | 876 | 766 | 592 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nasdaq Stock Market Index | 1,000 | 1,093 | 938 | 1,226 | 1,361 | 1,570 | 1,614 | 1,767 | 1,760 | 1,906 |
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
October 1 through October 31 | 73 | $ | 24.99 | — | $ | — | ||||||||||||||||||||
November 1 through November 30 | 1,799 | 24.23 | — | — | ||||||||||||||||||||||
December 1 through December 31 | 4,095 | 21.88 | — | — | ||||||||||||||||||||||
Total | 5,967 | $ | 22.63 | — | — |
(In thousands) | Successor Company | ||||||||||||||||
Year Ended December 31, | % | ||||||||||||||||
2021 | 2020 | Change | |||||||||||||||
Revenue | $ | 3,558,340 | $ | 2,948,218 | 20.7 | % | |||||||||||
Operating income (loss) | $ | 154,857 | $ | (1,737,624) | NM | ||||||||||||
Net loss | $ | (158,389) | $ | (1,915,222) | NM | ||||||||||||
Cash provided by operating activities from continuing operations | $ | 330,573 | $ | 215,945 | 53.1 | % | |||||||||||
Adjusted EBITDA(1) | $ | 811,133 | $ | 538,673 | 50.6 | % | |||||||||||
Free cash flow from continuing operations(2) | $ | 147,201 | $ | 130,740 | 12.6 | % | |||||||||||
Successor Company | |||||||||||
(In thousands) | Year Ended December 31, | ||||||||||
2021 | 2020 | ||||||||||
Revenue | $ | 3,558,340 | $ | 2,948,218 | |||||||
Operating expenses: | |||||||||||
Direct operating expenses (excludes depreciation and amortization) | 1,324,657 | 1,137,807 | |||||||||
Selling, general and administrative expenses (excludes depreciation and amortization) | 1,519,355 | 1,395,010 | |||||||||
Depreciation and amortization | 469,417 | 402,929 | |||||||||
Impairment charges | 57,734 | 1,738,752 | |||||||||
Other operating expense, net | 32,320 | 11,344 | |||||||||
Operating income (loss) | 154,857 | (1,737,624) | |||||||||
Interest expense, net | 332,384 | 343,745 | |||||||||
Gain (loss) on investments, net | 43,643 | (9,346) | |||||||||
Equity in loss of nonconsolidated affiliates | (1,138) | (379) | |||||||||
Other expense, net | (14,976) | (7,751) | |||||||||
Loss before income taxes | (149,998) | (2,098,845) | |||||||||
Income tax benefit (expense) | (8,391) | 183,623 | |||||||||
Net loss | (158,389) | (1,915,222) | |||||||||
Less amount attributable to noncontrolling interest | 810 | (523) | |||||||||
Net loss attributable to the Company | $ | (159,199) | $ | (1,914,699) |
Successor Company | |||||||||||||||||
(In thousands) | Year Ended December 31, | % | |||||||||||||||
2021 | 2020 | Change | |||||||||||||||
Broadcast Radio | $ | 1,812,252 | $ | 1,604,880 | 12.9 | % | |||||||||||
Networks | 503,052 | 484,950 | 3.7 | % | |||||||||||||
Sponsorship and Events | 160,322 | 107,654 | 48.9 | % | |||||||||||||
Other | 13,392 | 9,370 | 42.9 | % | |||||||||||||
Multiplatform Group | 2,489,018 | 2,206,854 | 12.8 | % | |||||||||||||
Digital, excluding Podcast | 581,918 | 372,687 | 56.1 | % | |||||||||||||
Podcast | 252,564 | 101,684 | 148.4 | % | |||||||||||||
Digital Audio Group | 834,482 | 474,371 | 75.9 | % | |||||||||||||
Audio & Media Services Group | 247,957 | 274,749 | (9.8) | % | |||||||||||||
Eliminations | (13,117) | (7,756) | |||||||||||||||
Revenue, total | $ | 3,558,340 | $ | 2,948,218 | 20.7 | % |
(In thousands) | Successor Company | ||||||||||||||||
Year Ended December 31, | % | ||||||||||||||||
2021 | 2020 | Change | |||||||||||||||
Revenue | $ | 2,489,018 | $ | 2,206,854 | 12.8 | % | |||||||||||
Operating expenses(1) | 1,745,680 | 1,723,449 | 1.3 | % | |||||||||||||
Segment Adjusted EBITDA | $ | 743,338 | $ | 483,405 | 53.8 | % | |||||||||||
Segment Adjusted EBITDA margin | 29.9 | % | 21.9 | % |
(In thousands) | Successor Company | ||||||||||||||||
Year Ended December 31, | % | ||||||||||||||||
2021 | 2020 | Change | |||||||||||||||
Revenue | $ | 834,482 | $ | 474,371 | 75.9 | % | |||||||||||
Operating expenses(1) | 573,835 | 343,598 | 67.0 | % | |||||||||||||
Segment Adjusted EBITDA | $ | 260,647 | $ | 130,773 | 99.3 | % | |||||||||||
Segment Adjusted EBITDA margin | 31.2 | % | 27.6 | % |
(In thousands) | Successor Company | ||||||||||||||||
Year Ended December 31, | % | ||||||||||||||||
2021 | 2020 | Change | |||||||||||||||
Revenue | $ | 247,957 | $ | 274,749 | (9.8) | % | |||||||||||
Operating expenses(1) | 171,766 | 180,081 | (4.6) | % | |||||||||||||
Segment Adjusted EBITDA | $ | 76,191 | $ | 94,668 | (19.5) | % | |||||||||||
Segment Adjusted EBITDA margin | 30.7 | % | 34.5 | % |
(In thousands) | Successor Company | Successor Company | Predecessor Company | Non-GAAP Combined | ||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | |||||||||||||||||||||||
Revenue | $ | 2,948,218 | $ | 2,610,056 | $ | 1,073,471 | $ | 3,683,527 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Direct operating expenses (excludes depreciation and amortization) | 1,137,807 | 860,313 | 370,612 | 1,230,925 | ||||||||||||||||||||||
Selling, general and administrative expenses (excludes depreciation and amortization) | 1,395,010 | 1,052,484 | 491,449 | 1,543,933 | ||||||||||||||||||||||
Depreciation and amortization | 402,929 | 249,623 | 52,834 | 302,457 | ||||||||||||||||||||||
Impairment charges | 1,738,752 | — | 91,382 | 91,382 | ||||||||||||||||||||||
Other operating expense, net | 11,344 | 8,000 | 154 | 8,154 | ||||||||||||||||||||||
Operating income (loss) | (1,737,624) | 439,636 | 67,040 | 506,676 | ||||||||||||||||||||||
Interest expense (income), net | 343,745 | 266,773 | (499) | 266,274 | ||||||||||||||||||||||
Loss on investments, net | (9,346) | (20,928) | (10,237) | (31,165) | ||||||||||||||||||||||
Equity in loss of nonconsolidated affiliates | (379) | (279) | (66) | (345) | ||||||||||||||||||||||
Other income (expense), net | (7,751) | (18,266) | 23 | (18,243) | ||||||||||||||||||||||
Reorganization items, net | — | — | 9,461,826 | 9,461,826 | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (2,098,845) | 133,390 | 9,519,085 | 9,652,475 | ||||||||||||||||||||||
Income tax (benefit) expense | 183,623 | (20,091) | (39,095) | (59,186) | ||||||||||||||||||||||
Income (loss) from continuing operations | (1,915,222) | 113,299 | 9,479,990 | 9,593,289 | ||||||||||||||||||||||
Income from discontinued operations, net of tax | — | — | 1,685,123 | 1,685,123 | ||||||||||||||||||||||
Net income (loss) | (1,915,222) | 113,299 | 11,165,113 | 11,278,412 | ||||||||||||||||||||||
Less amount attributable to noncontrolling interest | (523) | 751 | (19,028) | (18,277) | ||||||||||||||||||||||
Net income (loss) attributable to the Company | $ | (1,914,699) | $ | 112,548 | $ | 11,184,141 | $ | 11,296,689 |
Successor Company | Successor Company | Predecessor Company | Non-GAAP Combined | ||||||||||||||||||||||||||
(In thousands) | Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | Year Ended December 31, | % | ||||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | Change | |||||||||||||||||||||||||
Broadcast Radio | $ | 1,604,880 | $ | 1,575,382 | $ | 657,864 | $ | 2,233,246 | (28.1) | % | |||||||||||||||||||
Networks | 484,950 | 425,631 | 189,088 | 614,719 | (21.1) | % | |||||||||||||||||||||||
Sponsorship and Events | 107,654 | 159,187 | 50,330 | 209,517 | (48.6) | % | |||||||||||||||||||||||
Other | 9,370 | 14,211 | 6,606 | 20,817 | (55.0) | % | |||||||||||||||||||||||
Multiplatform Group | 2,206,854 | 2,174,411 | 903,888 | 3,078,299 | (28.3) | % | |||||||||||||||||||||||
Digital, excluding Podcast | 372,687 | 231,160 | 91,695 | 322,855 | 15.4 | % | |||||||||||||||||||||||
Podcast | 101,684 | 42,229 | 11,094 | 53,323 | 90.7 | % | |||||||||||||||||||||||
Digital Audio Group | 474,371 | 273,389 | 102,789 | 376,178 | 26.1 | % | |||||||||||||||||||||||
Audio & Media Services Group | 274,749 | 167,292 | 69,362 | 236,654 | 16.1 | % | |||||||||||||||||||||||
Eliminations | (7,756) | (5,036) | (2,568) | (7,604) | |||||||||||||||||||||||||
Revenue, total | $ | 2,948,218 | $ | 2,610,056 | $ | 1,073,471 | $ | 3,683,527 | (20.0) | % |
(In thousands) | Successor Company | Successor Company | Predecessor Company | Non-GAAP Combined | ||||||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | Year Ended December 31, | % | ||||||||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | Change | ||||||||||||||||||||||||||||
Revenue | $ | 2,206,854 | $ | 2,174,411 | $ | 903,888 | $ | 3,078,299 | (28.3) | % | ||||||||||||||||||||||
Operating expenses(1) | 1,723,449 | 1,381,073 | 635,205 | 2,016,278 | (14.5) | % | ||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 483,405 | $ | 793,338 | $ | 268,683 | $ | 1,062,021 | (54.5) | % | ||||||||||||||||||||||
Segment Adjusted EBITDA margin | 21.9 | % | 36.5 | % | 29.7 | % | 34.5 | % |
(In thousands) | Successor Company | Successor Company | Predecessor Company | Non-GAAP Combined | ||||||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | Year Ended December 31, | % | ||||||||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | Change | ||||||||||||||||||||||||||||
Revenue | $ | 474,371 | $ | 273,389 | $ | 102,789 | $ | 376,178 | 26.1 | % | ||||||||||||||||||||||
Operating expenses(1) | 343,598 | 194,366 | 88,621 | 282,987 | 21.4 | % | ||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 130,773 | $ | 79,023 | $ | 14,168 | $ | 93,191 | 40.3 | % | ||||||||||||||||||||||
Segment Adjusted EBITDA margin | 27.6 | % | 28.9 | % | 13.8 | % | 24.8 | % |
(In thousands) | Successor Company | Successor Company | Predecessor Company | Non-GAAP Combined | ||||||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | Year Ended December 31, | % | ||||||||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | Change | ||||||||||||||||||||||||||||
Revenue | $ | 274,749 | 167,292 | 69,362 | $ | 236,654 | 16.1 | % | ||||||||||||||||||||||||
Operating expenses(1) | 180,081 | 120,685 | 55,278 | 175,963 | 2.3 | % | ||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 94,668 | $ | 46,607 | $ | 14,084 | $ | 60,691 | 56.0 | % | ||||||||||||||||||||||
Segment Adjusted EBITDA margin | 34.5 | % | 27.9 | % | 20.3 | % | 25.6 | % |
(In thousands) | Successor Company | ||||||||||
Year Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Operating income (loss) | $ | 154,857 | $ | (1,737,624) | |||||||
Depreciation and amortization(1) | 469,417 | 402,929 | |||||||||
Impairment charges | 57,734 | 1,738,752 | |||||||||
Other operating expense, net | 32,320 | 11,344 | |||||||||
Share-based compensation expense | 23,543 | 22,862 | |||||||||
Restructuring and reorganization expenses | 73,262 | 100,410 | |||||||||
Adjusted EBITDA(2) | $ | 811,133 | $ | 538,673 |
(In thousands) | Successor Company | Successor Company | Predecessor Company | Non-GAAP Combined2 | ||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | |||||||||||||||||||||||
Operating income (loss) | $ | (1,737,624) | $ | 439,636 | $ | 67,040 | $ | 506,676 | ||||||||||||||||||
Depreciation and amortization(1) | 402,929 | 249,623 | 52,834 | 302,457 | ||||||||||||||||||||||
Impairment charges | 1,738,752 | — | 91,382 | 91,382 | ||||||||||||||||||||||
Other operating expense, net | 11,344 | 8,000 | 154 | 8,154 | ||||||||||||||||||||||
Share-based compensation expense | 22,862 | 26,411 | 498 | 26,909 | ||||||||||||||||||||||
Restructuring and reorganization expenses | 100,410 | 51,879 | 13,241 | 65,120 | ||||||||||||||||||||||
Adjusted EBITDA(2) | $ | 538,673 | $ | 775,549 | $ | 225,149 | $ | 1,000,698 |
(In thousands) | Successor Company | ||||||||||
Year Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Net loss | $ | (158,389) | $ | (1,915,222) | |||||||
Income tax (benefit) expense | 8,391 | (183,623) | |||||||||
Interest expense, net | 332,384 | 343,745 | |||||||||
Depreciation and amortization | 469,417 | 402,929 | |||||||||
EBITDA | $ | 651,803 | $ | (1,352,171) | |||||||
(Gain) loss on investments, net | (43,643) | 9,346 | |||||||||
Other expense, net | 14,976 | 7,751 | |||||||||
Equity in loss of nonconsolidated affiliates | 1,138 | 379 | |||||||||
Impairment charges | 57,734 | 1,738,752 | |||||||||
Other operating expense, net | 32,320 | 11,344 | |||||||||
Share-based compensation expense | 23,543 | 22,862 | |||||||||
Restructuring expenses | 73,262 | 100,410 | |||||||||
Adjusted EBITDA(2) | $ | 811,133 | $ | 538,673 |
(In thousands) | Successor Company | Successor Company | Predecessor Company | Non-GAAP Combined | ||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | |||||||||||||||||||||||
Net income (loss) | (1,915,222) | 113,299 | 11,165,113 | 11,278,412 | ||||||||||||||||||||||
Income from discontinued operations, net of tax | — | — | (1,685,123) | (1,685,123) | ||||||||||||||||||||||
Income tax (benefit) expense | (183,623) | 20,091 | 39,095 | 59,186 | ||||||||||||||||||||||
Interest expense (income), net(3) | 343,745 | 266,773 | (499) | 266,274 | ||||||||||||||||||||||
Depreciation and amortization(1) | 402,929 | 249,623 | 52,834 | 302,457 | ||||||||||||||||||||||
EBITDA | $ | (1,352,171) | $ | 649,786 | $ | 9,571,420 | $ | 10,221,206 | ||||||||||||||||||
Reorganization items, net | — | — | (9,461,826) | (9,461,826) | ||||||||||||||||||||||
Loss on investments, net | 9,346 | 20,928 | 10,237 | 31,165 | ||||||||||||||||||||||
Other (income) expense, net | 7,751 | 18,266 | (23) | 18,243 | ||||||||||||||||||||||
Equity in loss of nonconsolidated affiliates | 379 | 279 | 66 | 345 | ||||||||||||||||||||||
Impairment charges | 1,738,752 | — | 91,382 | 91,382 | ||||||||||||||||||||||
Other operating expense, net | 11,344 | 8,000 | 154 | 8,154 | ||||||||||||||||||||||
Share-based compensation expense | 22,862 | 26,411 | 498 | 26,909 | ||||||||||||||||||||||
Restructuring and reorganization expenses | 100,410 | 51,879 | 13,241 | 65,120 | ||||||||||||||||||||||
Adjusted EBITDA(2) | $ | 538,673 | $ | 775,549 | $ | 225,149 | $ | 1,000,698 |
(In thousands) | Successor Company | ||||||||||
Year Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash provided by operating activities from continuing operations | $ | 330,573 | $ | 215,945 | |||||||
Purchases of property, plant and equipment by continuing operations | (183,372) | (85,205) | |||||||||
Free cash flow from continuing operations(1) | $ | 147,201 | $ | 130,740 |
(In thousands) | Successor Company | Successor Company | Predecessor Company | Non-GAAP Combined | ||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | Year Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | |||||||||||||||||||||||
Cash provided by (used for) operating activities from continuing operations(2) | $ | 215,945 | $ | 468,905 | $ | (7,505) | $ | 461,400 | ||||||||||||||||||
Less: Purchases of property, plant and equipment by continuing operations | (85,205) | (75,993) | (36,197) | (112,190) | ||||||||||||||||||||||
Free cash flow from (used for) continuing operations(2) | $ | 130,740 | $ | 392,912 | $ | (43,702) | $ | 349,210 |
(In thousands) | Successor Company | Successor Company | Successor Company | Predecessor Company | Non-GAAP Combined | |||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | Year Ended December 31, | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||||||||||||||||
Cash provided by (used for): | ||||||||||||||||||||||||||||||||
Operating activities | $ | 330,573 | $ | 215,945 | $ | 468,905 | $ | (40,186) | $ | 428,719 | ||||||||||||||||||||||
Investing activities | $ | (346,790) | $ | (147,813) | $ | (73,278) | $ | (261,144) | $ | (334,422) | ||||||||||||||||||||||
Financing activities | $ | (352,124) | $ | 241,180 | $ | (58,033) | $ | (55,557) | $ | (113,590) | ||||||||||||||||||||||
Free Cash Flow(1) | $ | 147,201 | $ | 130,740 | $ | 392,912 | $ | (43,702) | $ | 349,210 |
(In thousands) | Successor Company | ||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||
Term Loan Facility due 2026(1) | $ | 1,864,032 | $ | 2,080,259 | |||||||
Incremental Term Loan Facility due 2026(1) | 401,220 | 447,750 | |||||||||
Asset-based Revolving Credit Facility due 2023 | — | — | |||||||||
6.375% Senior Secured Notes due 2026 | 800,000 | 800,000 | |||||||||
5.25% Senior Secured Notes due 2027 | 750,000 | 750,000 | |||||||||
4.75% Senior Secured Notes due 2028 | 500,000 | 500,000 | |||||||||
Other secured subsidiary debt | 5,350 | 22,753 | |||||||||
Total consolidated secured debt | $ | 4,320,602 | $ | 4,600,762 | |||||||
8.375% Senior Unsecured Notes due 2027 | 1,450,000 | 1,450,000 | |||||||||
Other unsecured subsidiary debt | 90 | 6,782 | |||||||||
Purchase accounting adjustments and original issue discount | (13,454) | (18,817) | |||||||||
Long-term debt fees | (18,370) | (21,797) | |||||||||
Total Debt | 5,738,868 | 6,016,930 | |||||||||
Less: Cash and cash equivalents | 352,129 | 720,662 | |||||||||
Net Debt | $ | 5,386,739 | $ | 5,296,268 |
(In thousands) | Successor Company | Successor Company | Successor Company | Predecessor Company | Non-GAAP Combined | |||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | Year Ended December 31, | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||||||||||||||||
Multiplatform Group | $ | 130,894 | $ | 51,559 | $ | 48,096 | $ | 25,270 | $ | 73,366 | ||||||||||||||||||||||
Digital Audio Group | 23,907 | 16,086 | 10,505 | 4,694 | 15,199 | |||||||||||||||||||||||||||
Audio and Media Services Group | 14,515 | 5,105 | 3,980 | 1,263 | 5,243 | |||||||||||||||||||||||||||
Corporate | 14,056 | 12,455 | 13,412 | 4,970 | 18,382 | |||||||||||||||||||||||||||
Total capital expenditures | $ | 183,372 | $ | 85,205 | $ | 75,993 | $ | 36,197 | $ | 112,190 |
(In thousands) | ||||||||||||||||||||
Description | Revenue Growth Rate | Profit Margin | Discount Rate | |||||||||||||||||
FCC licenses | $ | 405,630 | $ | 213,548 | $ | 459,449 |
(In thousands) | ||||||||||||||||||||
Description | Revenue Growth Rate | Profit Margin | Discount Rate | |||||||||||||||||
Multiplatform | $ | 670,000 | $ | 240,000 | $ | 650,000 | ||||||||||||||
Digital | $ | 330,000 | $ | 100,000 | $ | 270,000 | ||||||||||||||
Katz Media | $ | 60,000 | $ | 20,000 | $ | 50,000 | ||||||||||||||
Other | $ | 30,000 | $ | 10,000 | $ | 20,000 |
Valuation of Goodwill and Indefinite-Lived Intangibles | ||||||||
Description of the Matter | As described in Note 4 to the consolidated financial statements, at December 31, 2021 the Company’s goodwill was $2.3 billion and FCC licenses with indefinite lives were $1.8 billion. Management conducts impairment tests for goodwill and indefinite-lived intangibles annually during the third quarter, or more frequently, if events or circumstances indicate the carrying value of goodwill or indefinite-lived intangibles may be impaired. The Company performed their annual impairment test as of July 1, 2021 on goodwill and indefinite-lived intangible assets which resulted in no impairment charges being recorded to goodwill or FCC Licenses. Auditing management’s impairment tests for goodwill and intangible assets with indefinite lives was complex and highly judgmental and required the involvement of a valuation specialist due to the significant estimation required to determine the fair value of the reporting units and FCC licenses. In particular for goodwill, the fair value estimates in the discounted cash flow models of reporting units are sensitive to assumptions such as changes in projected cash flows, including due to the impacts of COVID-19, and discount rate. For FCC Licenses, the fair value estimates in the discounted cash flow models are sensitive to changes to the discount rate assumption. All of these assumptions are sensitive to and affected by expected future market or economic conditions, and industry factors. | |||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill and FCC licenses impairment review process, including controls over management’s review of the significant assumptions described above. This included evaluating controls over the Company’s forecasting process used to develop the estimated future cash flows. We also tested controls over management’s review of the data used in their valuation models and review of the significant assumptions such as estimation of discount rates. To test the estimated fair values of the Company’s reporting units and FCC licenses, our audit procedures included, among others, evaluating the Company's selection of the valuation methodology, evaluating the methods and significant assumptions used by management, and evaluating the completeness and accuracy of the underlying data supporting the significant assumptions and estimates. We compared the projected cash flows to the Company’s historical cash flows and other available industry and market forecast information, including third-party industry projections for the advertising industry. We involved our valuation specialists to assist in reviewing the valuation methodology and testing the terminal growth rates and discount rates. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting units and FCC licenses that would result from changes in the assumptions. In addition, for goodwill we also tested management’s reconciliation of the fair value of the reporting units to the market capitalization of the Company. For FCC licenses, we also assessed whether the assumptions used were consistent with those used in the goodwill impairment review process. |
(In thousands, except share and per share data) | Successor Company | ||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||
Cash and cash equivalents | $ | 352,129 | $ | 720,662 | |||||||
Accounts receivable, net of allowance of $29,270 in 2021 and $38,777 in 2020 | 1,030,380 | 801,380 | |||||||||
Prepaid expenses | 65,927 | 79,508 | |||||||||
Other current assets | 24,431 | 17,426 | |||||||||
Total Current Assets | 1,472,867 | 1,618,976 | |||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||
Property, plant and equipment, net | 782,093 | 811,702 | |||||||||
INTANGIBLE ASSETS AND GOODWILL | |||||||||||
Indefinite-lived intangibles - licenses | 1,778,045 | 1,770,345 | |||||||||
Other intangibles, net | 1,666,600 | 1,924,492 | |||||||||
Goodwill | 2,313,581 | 2,145,935 | |||||||||
OTHER ASSETS | |||||||||||
Operating lease right-of-use assets | 741,410 | 825,887 | |||||||||
Other assets | 126,713 | 105,624 | |||||||||
Total Assets | $ | 8,881,309 | $ | 9,202,961 | |||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable | $ | 206,007 | $ | 149,333 | |||||||
Current operating lease liabilities | 88,585 | 76,503 | |||||||||
Accrued expenses | 353,045 | 265,651 | |||||||||
Accrued interest | 67,983 | 68,054 | |||||||||
Deferred revenue | 133,123 | 123,488 | |||||||||
Current portion of long-term debt | 673 | 34,775 | |||||||||
Total Current Liabilities | 849,416 | 717,804 | |||||||||
Long-term debt | 5,738,195 | 5,982,155 | |||||||||
Series A Mandatorily Redeemable Preferred Stock, par value $0.001, authorized 95,000 shares, no shares issued in 2021 and 60,000 shares issued in 2020, respectively | — | 60,000 | |||||||||
Noncurrent operating lease liabilities | 738,814 | 764,491 | |||||||||
Deferred income taxes | 558,222 | 556,477 | |||||||||
Other long-term liabilities | 80,897 | 71,217 | |||||||||
Commitments and contingent liabilities (Note 7) | |||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||
Noncontrolling interest | 8,410 | 8,350 | |||||||||
Preferred stock, par value $.001 per share, 100,000,000 shares authorized, no shares issued and outstanding | — | — | |||||||||
Class A Common Stock, par value $.001 per share, authorized 1,000,000,000 shares, issued and outstanding 120,633,937 and 64,726,864 shares in 2021 and 2020, respectively | 120 | 65 | |||||||||
Class B Common Stock, par value $.001 per share, authorized 1,000,000,000 shares, issued and outstanding 21,590,192 and 6,886,925 shares in 2021 and 2020, respectively | 22 | 7 | |||||||||
Special Warrants, 5,304,430 and 74,835,899 issued and outstanding in 2021 and 2020, respectively | — | — | |||||||||
Additional paid-in capital | 2,876,571 | 2,849,020 | |||||||||
Accumulated deficit | (1,962,819) | (1,803,620) | |||||||||
Accumulated other comprehensive income (loss) | (257) | 194 | |||||||||
Cost of shares (389,814 in 2021 and 254,066 in 2020) held in treasury | (6,282) | (3,199) | |||||||||
Total Stockholders' Equity | 915,765 | 1,050,817 | |||||||||
Total Liabilities and Stockholders' Equity | $ | 8,881,309 | $ | 9,202,961 |
Successor Company | Predecessor Company | |||||||||||||||||||||||||
(In thousands, except per share data) | Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2019 | |||||||||||||||||||||||
Revenue | $ | 3,558,340 | $ | 2,948,218 | $ | 2,610,056 | $ | 1,073,471 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Direct operating expenses (excludes depreciation and amortization) | 1,324,657 | 1,137,807 | 860,313 | 370,612 | ||||||||||||||||||||||
Selling, general and administrative expenses (excludes depreciation and amortization) | 1,519,355 | 1,395,010 | 1,052,484 | 491,449 | ||||||||||||||||||||||
Depreciation and amortization | 469,417 | 402,929 | 249,623 | 52,834 | ||||||||||||||||||||||
Impairment charges | 57,734 | 1,738,752 | — | 91,382 | ||||||||||||||||||||||
Other operating expense, net | 32,320 | 11,344 | 8,000 | 154 | ||||||||||||||||||||||
Operating income (loss) | 154,857 | (1,737,624) | 439,636 | 67,040 | ||||||||||||||||||||||
Interest expense (income), net | 332,384 | 343,745 | 266,773 | (499) | ||||||||||||||||||||||
Gain (loss) on investments, net | 43,643 | (9,346) | (20,928) | (10,237) | ||||||||||||||||||||||
Equity in loss of nonconsolidated affiliates | (1,138) | (379) | (279) | (66) | ||||||||||||||||||||||
Other income (expense), net | (14,976) | (7,751) | (18,266) | 23 | ||||||||||||||||||||||
Reorganization items, net | — | — | — | 9,461,826 | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (149,998) | (2,098,845) | 133,390 | 9,519,085 | ||||||||||||||||||||||
Income tax benefit (expense) | (8,391) | 183,623 | (20,091) | (39,095) | ||||||||||||||||||||||
Income (loss) from continuing operations | (158,389) | (1,915,222) | 113,299 | 9,479,990 | ||||||||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | 1,685,123 | ||||||||||||||||||||||
Net income (loss) | (158,389) | (1,915,222) | 113,299 | 11,165,113 | ||||||||||||||||||||||
Less amount attributable to noncontrolling interest | 810 | (523) | 751 | (19,028) | ||||||||||||||||||||||
Net income (loss) attributable to the Company | $ | (159,199) | $ | (1,914,699) | $ | 112,548 | $ | 11,184,141 | ||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | (451) | 945 | (750) | (1,175) | ||||||||||||||||||||||
Other comprehensive income (loss) | (451) | 945 | (750) | (1,175) | ||||||||||||||||||||||
Comprehensive income (loss) | (159,650) | (1,913,754) | 111,798 | 11,182,966 | ||||||||||||||||||||||
Less amount attributable to noncontrolling interest | — | — | — | 2,784 | ||||||||||||||||||||||
Comprehensive income (loss) attributable to the Company | $ | (159,650) | $ | (1,913,754) | $ | 111,798 | $ | 11,180,182 | ||||||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||||||||
From continuing operations | $ | (1.09) | $ | (13.12) | $ | 0.77 | $ | 109.92 | ||||||||||||||||||
From discontinued operations | — | — | — | 19.76 | ||||||||||||||||||||||
Basic net income (loss) per share | $ | (1.09) | $ | (13.12) | $ | 0.77 | $ | 129.68 | ||||||||||||||||||
Weighted average common shares outstanding - Basic | 146,726 | 145,979 | 145,608 | 86,241 | ||||||||||||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||||||||
From continuing operations | $ | (1.09) | $ | (13.12) | $ | 0.77 | $ | 109.92 | ||||||||||||||||||
From discontinued operations | — | — | — | 19.76 | ||||||||||||||||||||||
Diluted net income (loss) per share | $ | (1.09) | $ | (13.12) | $ | 0.77 | $ | 129.68 | ||||||||||||||||||
Weighted average common shares outstanding - Diluted | 146,726 | 145,979 | 145,795 | 86,241 |
(In thousands, except share data) | Controlling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares(1) | Non- controlling Interest | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | Class B Shares | Special Warrants | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 (Successor) | 64,726,864 | 6,886,925 | 74,835,899 | $ | 8,350 | $ | 72 | $ | 2,849,020 | $ | (1,803,620) | $ | 194 | $ | (3,199) | $ | 1,050,817 | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 810 | — | — | (159,199) | — | — | (158,389) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock and other | 1,075,889 | — | — | 4,078 | — | — | (3,083) | 995 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 23,543 | — | — | — | 23,543 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares | 47,197,139 | 22,337,312 | (69,534,451) | — | 70 | (70) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B Shares to Class A Shares | 7,634,045 | (7,634,045) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 2,982 | (750) | — | — | — | — | — | (750) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (451) | — | (451) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 (Successor) | 120,633,937 | 21,590,192 | 5,304,430 | $ | 8,410 | $ | 142 | $ | 2,876,571 | $ | (1,962,819) | $ | (257) | $ | (6,282) | $ | 915,765 |
(In thousands, except per share data) | Controlling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares(1) | Non- controlling Interest | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | Class B Shares | Special Warrants | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 (Successor) | 57,776,204 | 6,904,910 | 81,046,593 | $ | 9,123 | $ | 65 | $ | 2,826,533 | $ | 112,548 | $ | (750) | $ | (2,078) | $ | 2,945,441 | ||||||||||||||||||||||||||||||||||||||||||
Net loss | (523) | — | — | (1,914,699) | — | — | (1,915,222) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock and other | 724,963 | — | 1 | (23) | — | — | (1,121) | (1,143) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 22,516 | — | — | — | 22,516 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Special Warrants to Class A and B Shares | 6,205,617 | 2,095 | (6,207,712) | — | 6 | (6) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B Shares to Class A Shares | 20,080 | (20,080) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (2,982) | (250) | — | — | (1,469) | (1) | — | (1,720) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 945 | — | 945 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 (Successor) | 64,726,864 | 6,886,925 | 74,835,899 | $ | 8,350 | $ | 72 | $ | 2,849,020 | $ | (1,803,620) | $ | 194 | $ | (3,199) | $ | 1,050,817 | ||||||||||||||||||||||||||||||||||||||||||
(In thousands, except share data) | Controlling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares(1) | Non- controlling Interest | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | Class B Shares | Class C Shares | Special Warrants | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2018 (Predecessor) | 32,292,944 | 555,556 | 58,967,502 | — | $ | 30,868 | $ | 92 | $ | 2,074,632 | $ | (13,345,346) | $ | (318,030) | $ | (2,558) | $ | (11,560,342) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (19,028) | — | — | 11,184,141 | — | — | 11,165,113 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest - Separation | (13,199) | — | — | — | — | — | (13,199) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss - Separation | — | — | — | — | 307,813 | — | 307,813 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | 128,908 | — | — | 128,908 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | 196 | — | — | — | — | (4) | 192 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeitures of restricted stock | (110,333) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 2,028 | — | — | — | 2,028 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation - discontinued operations | 2,449 | — | — | — | — | — | 2,449 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to non-controlling interests | (3,684) | — | — | — | — | — | (3,684) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 2,784 | — | — | — | (3,959) | — | (1,175) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cancellation of Predecessor equity | (32,182,611) | (555,556) | (58,967,502) | (386) | (92) | (2,076,660) | 2,059,998 | 14,175 | 2,562 | (403) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Successor common stock and warrants | 56,861,941 | 6,947,567 | — | 81,453,648 | 8,943 | 64 | 2,770,108 | (27,701) | — | — | 2,751,414 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at May 1, 2019 (Predecessor) | 56,861,941 | 6,947,567 | — | 81,453,648 | $ | 8,943 | $ | 64 | $ | 2,770,108 | $ | — | $ | — | $ | — | $ | 2,779,115 | |||||||||||||||||||||||||||||||||||||||||||||||
Balances at May 2, 2019 (Successor) | 56,861,941 | 6,947,567 | — | 81,453,648 | $ | 8,943 | $ | 64 | $ | 2,770,108 | $ | — | $ | — | $ | — | $ | 2,779,115 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | 751 | — | — | 112,548 | — | — | 113,299 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock | 644,025 | — | 1 | (1) | — | — | (2,078) | (2,078) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 26,377 | — | — | — | 26,377 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares | 216,921 | 10,660 | (227,581) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B Shares to Class A Shares | 53,317 | (53,317) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cancellation of Special Warrants and other | (179,474) | (571) | — | 30,049 | — | — | — | 29,478 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (750) | — | (750) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 (Successor) | 57,776,204 | 6,904,910 | — | 81,046,593 | $ | 9,123 | $ | 65 | $ | 2,826,533 | $ | 112,548 | $ | (750) | $ | (2,078) | $ | 2,945,441 |
Successor Company | Predecessor Company | |||||||||||||||||||||||||
(In thousands) | Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2019 | |||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||
Net income (loss) | $ | (158,389) | $ | (1,915,222) | $ | 113,299 | $ | 11,165,113 | ||||||||||||||||||
Income from discontinued operations | — | — | — | (1,685,123) | ||||||||||||||||||||||
Reconciling items: | ||||||||||||||||||||||||||
Impairment charges | 57,734 | 1,738,752 | — | 91,382 | ||||||||||||||||||||||
Depreciation and amortization | 469,417 | 402,929 | 249,623 | 52,834 | ||||||||||||||||||||||
Deferred taxes | (10,874) | (184,269) | 9,120 | 115,839 | ||||||||||||||||||||||
Provision for doubtful accounts | 4,144 | 38,273 | 14,088 | 3,268 | ||||||||||||||||||||||
Amortization of deferred financing charges and note discounts, net | 5,930 | 4,758 | 1,295 | 512 | ||||||||||||||||||||||
Non-cash Reorganization items, net | — | — | — | (9,619,236) | ||||||||||||||||||||||
Share-based compensation | 23,543 | 22,516 | 26,377 | 498 | ||||||||||||||||||||||
(Gain) loss on disposal of operating and other assets | 26,841 | 6,986 | 4,539 | (143) | ||||||||||||||||||||||
(Gain) loss on investments | (43,643) | 9,346 | 20,928 | 10,237 | ||||||||||||||||||||||
Equity in loss of nonconsolidated affiliates | 1,138 | 379 | 279 | 66 | ||||||||||||||||||||||
Barter and trade income | (16,276) | (10,502) | (12,961) | (5,947) | ||||||||||||||||||||||
Other reconciling items, net | 12,490 | 656 | (9,154) | (65) | ||||||||||||||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||||||||||||||||||||||||||
(Increase) decrease in accounts receivable | (205,200) | 77,335 | (179,479) | 117,263 | ||||||||||||||||||||||
(Increase) decrease in prepaid expenses and other current assets | 4,746 | 2,447 | 15,288 | (24,044) | ||||||||||||||||||||||
(Increase) decrease in other long-term assets | (5,505) | (1,119) | 7,924 | (7,098) | ||||||||||||||||||||||
Increase (decrease) in accounts payable and accrued expenses | 153,938 | 52,354 | 127,150 | (156,885) | ||||||||||||||||||||||
Increase (decrease) in accrued interest | (72) | (15,714) | 84,523 | 256 | ||||||||||||||||||||||
Increase (decrease) in deferred income | 8,229 | (21,859) | (8,441) | 13,377 | ||||||||||||||||||||||
Increase (decrease) in other long-term liabilities | 2,382 | 7,899 | 4,507 | (79,609) | ||||||||||||||||||||||
Cash provided by (used for) operating activities from continuing operations | 330,573 | 215,945 | 468,905 | (7,505) | ||||||||||||||||||||||
Cash used for operating activities from discontinued operations | — | — | — | (32,681) | ||||||||||||||||||||||
Net cash provided by (used for) operating activities | 330,573 | 215,945 | 468,905 | (40,186) | ||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||
Business combinations | (245,462) | (62,050) | — | (1,998) | ||||||||||||||||||||||
Proceeds from sale of investments | 50,757 | 1,000 | 765 | — | ||||||||||||||||||||||
Proceeds from disposal of assets | 37,463 | 2,041 | 7,281 | 99 | ||||||||||||||||||||||
Purchases of property, plant and equipment | (183,372) | (85,205) | (75,993) | (36,197) | ||||||||||||||||||||||
Change in other, net | (6,176) | (3,599) | (5,331) | (682) | ||||||||||||||||||||||
Cash used for investing activities from continuing operations | (346,790) | (147,813) | (73,278) | (38,778) | ||||||||||||||||||||||
Cash used for investing activities from discontinued operations | — | — | — | (222,366) | ||||||||||||||||||||||
Net cash used for investing activities | (346,790) | (147,813) | (73,278) | (261,144) | ||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||
Proceeds from long-term debt and credit facilities | — | 779,750 | 1,250,007 | 269 | ||||||||||||||||||||||
Payments on long-term debt, Mandatorily Redeemable Preferred Stock and credit facilities | (352,383) | (532,392) | (1,285,408) | (8,294) | ||||||||||||||||||||||
Proceeds from Mandatorily Redeemable Preferred Stock | — | — | — | 60,000 | ||||||||||||||||||||||
Settlement of intercompany related to discontinued operations | — | — | — | (159,196) | ||||||||||||||||||||||
Debt issuance costs | 15 | (4,786) | (19,983) | — | ||||||||||||||||||||||
Change in other, net | 244 | (1,392) | (2,649) | (5) | ||||||||||||||||||||||
Cash provided by (used for) financing activities from continuing operations | (352,124) | 241,180 | (58,033) | (107,226) | ||||||||||||||||||||||
Cash provided by financing activities from discontinued operations | — | — | — | 51,669 | ||||||||||||||||||||||
Net cash provided by (used for) financing activities | (352,124) | 241,180 | (58,033) | (55,557) | ||||||||||||||||||||||
Effect of exchange rate changes on cash | (292) | 257 | 15 | 562 | ||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (368,633) | 309,569 | 337,609 | (356,325) | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 721,187 | 411,618 | 74,009 | 430,334 | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | 352,554 | 721,187 | 411,618 | 74,009 | ||||||||||||||||||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of period | — | — | — | — | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period | $ | 352,554 | $ | 721,187 | $ | 411,618 | $ | 74,009 | ||||||||||||||||||
SUPPLEMENTAL DISCLOSURES: | ||||||||||||||||||||||||||
Cash paid during the year for interest | $ | 328,101 | $ | 357,168 | $ | 183,806 | $ | 137,042 | ||||||||||||||||||
Cash paid during the year for taxes | 11,130 | 5,844 | 5,759 | 22,092 | ||||||||||||||||||||||
Cash paid for Reorganization items, net | — | 443 | 18,360 | 183,291 |
(In thousands) | Successor Company | ||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||
Cash and cash equivalents | $ | 352,129 | $ | 720,662 | |||||||
Restricted cash included in: | |||||||||||
Other current assets | 425 | — | |||||||||
Other assets | — | 525 | |||||||||
Total cash, cash equivalents and restricted cash in the Statement of Cash Flows | $ | 352,554 | $ | 721,187 |
Predecessor Company | |||||||||||||||||||||||||||||
(In thousands) | Multiplatform Group | Digital Audio Group | Audio and Media Services Group | Eliminations | Consolidated | ||||||||||||||||||||||||
Period from January 1, 2019 through May 1, 2019 | |||||||||||||||||||||||||||||
Revenue from contracts with customers: | |||||||||||||||||||||||||||||
Broadcast Radio(1) | $ | 657,864 | $ | — | $ | — | $ | — | $ | 657,864 | |||||||||||||||||||
Networks(2) | 189,088 | — | — | — | 189,088 | ||||||||||||||||||||||||
Sponsorship and Events(3) | 50,330 | — | — | — | 50,330 | ||||||||||||||||||||||||
Digital, excluding Podcast(4) | — | 91,695 | — | — | 91,695 | ||||||||||||||||||||||||
Podcast(5) | — | 11,094 | — | — | 11,094 | ||||||||||||||||||||||||
Audio and Media Services(6) | — | — | 69,362 | (2,325) | 67,037 | ||||||||||||||||||||||||
Other(7) | 5,910 | — | — | (243) | 5,667 | ||||||||||||||||||||||||
Total | 903,192 | 102,789 | 69,362 | (2,568) | 1,072,775 | ||||||||||||||||||||||||
Revenue from leases(8) | 696 | — | — | — | 696 | ||||||||||||||||||||||||
Revenue, total | $ | 903,888 | $ | 102,789 | $ | 69,362 | $ | (2,568) | $ | 1,073,471 |
Successor Company | Predecessor Company | |||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | ||||||||||||||||||||||||
(In thousands) | 2021 | 2020 | 2019 | 2019 | ||||||||||||||||||||||
Consolidated: | ||||||||||||||||||||||||||
Trade and barter revenues | $ | 175,519 | $ | 158,383 | $ | 151,497 | $ | 65,934 | ||||||||||||||||||
Trade and barter expenses | 149,846 | 154,715 | 134,865 | 58,330 |
Successor Company | Predecessor Company | |||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | ||||||||||||||||||||||||
(In thousands) | 2021 | 2020 | 2019 | 2019 | ||||||||||||||||||||||
Deferred revenue from contracts with customers: | ||||||||||||||||||||||||||
Beginning balance(1) | $ | 145,493 | $ | 162,068 | $ | 151,475 | $ | 148,720 | ||||||||||||||||||
Impact of fresh start accounting | — | — | 298 | — | ||||||||||||||||||||||
Revenue recognized, included in beginning balance | (93,195) | (95,531) | (102,237) | (76,473) | ||||||||||||||||||||||
Additions, net of revenue recognized during period, and other | 108,816 | 78,956 | 112,532 | 79,228 | ||||||||||||||||||||||
Ending balance | $ | 161,114 | $ | 145,493 | $ | 162,068 | $ | 151,475 | ||||||||||||||||||
(In thousands) | |||||
2022 | $ | 951 | |||
2023 | 780 | ||||
2024 | 600 | ||||
2025 | 415 | ||||
2026 | 323 | ||||
Thereafter | 1,524 | ||||
Total minimum future rentals | $ | 4,593 |
Successor Company | Predecessor Company | |||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | ||||||||||||||||||||||||
(In thousands) | 2021 | 2020 | 2019 | 2019 | ||||||||||||||||||||||
Operating lease expense | $ | 153,042 | $ | 151,448 | $ | 100,835 | $ | 44,667 | ||||||||||||||||||
Variable lease expense | 31,516 | 31,451 | 15,940 | 476 | ||||||||||||||||||||||
Non-cash impairment of ROU assets(1) | 44,311 | 8,043 | — | — |
December 31, 2021 | |||||
Operating lease weighted average remaining lease term (in years) | 12.7 | ||||
Operating lease weighted average discount rate | 6.5 | % |
(In thousands) | |||||
2022 | $ | 136,870 | |||
2023 | 127,340 | ||||
2024 | 117,413 | ||||
2025 | 107,226 | ||||
2026 | 97,275 | ||||
Thereafter | 659,500 | ||||
Total lease payments | $ | 1,245,624 | |||
Less: Effect of discounting | 418,225 | ||||
Total operating lease liability | $ | 827,399 |
Successor Company | Predecessor Company | |||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | ||||||||||||||||||||||||
(In thousands) | 2021 | 2020 | 2019 | 2019 | ||||||||||||||||||||||
Cash paid for amounts included in measurement of operating lease liabilities | $ | 136,780 | $ | 139,507 | $ | 89,567 | $ | 44,888 | ||||||||||||||||||
Lease liabilities arising from obtaining right-of-use assets(1) | $ | 74,745 | $ | 56,243 | $ | 29,498 | $ | 913,598 |
(In thousands) | Successor Company | ||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||
Land, buildings and improvements | $ | 355,474 | $ | 386,980 | |||||||
Towers, transmitters and studio equipment | 180,571 | 169,788 | |||||||||
Computer equipment and software | 521,872 | 398,084 | |||||||||
Furniture and other equipment | 35,390 | 45,711 | |||||||||
Construction in progress | 64,732 | 25,073 | |||||||||
1,158,039 | 1,025,636 | ||||||||||
Less: accumulated depreciation | 375,946 | 213,934 | |||||||||
Property, plant and equipment, net | $ | 782,093 | $ | 811,702 |
(In thousands) | Successor Company | ||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||
Customer / advertiser relationships | 1,636,202 | (457,627) | 1,620,509 | (286,066) | |||||||||||||||||||
Talent and other contracts | 338,900 | (117,337) | 375,900 | (84,065) | |||||||||||||||||||
Trademarks and tradenames | 335,862 | (88,252) | 326,061 | (54,358) | |||||||||||||||||||
Other | 27,994 | (9,142) | 31,351 | (4,840) | |||||||||||||||||||
Total | $ | 2,338,958 | $ | (672,358) | $ | 2,353,821 | $ | (429,329) |
(In thousands) | |||||
2022 | $ | 254,713 | |||
2023 | 246,007 | ||||
2024 | 244,582 | ||||
2025 | 213,389 | ||||
2026 | 201,467 |
(In thousands) | Audio | Audio & Media Services Group | Consolidated | ||||||||||||||
Balance as of December 31, 2019 | $ | 3,221,468 | $ | 104,154 | $ | 3,325,622 | |||||||||||
Impairment | (1,224,374) | — | (1,224,374) | ||||||||||||||
Acquisitions | 44,606 | — | 44,606 | ||||||||||||||
Dispositions | (164) | — | (164) | ||||||||||||||
Foreign currency | — | 245 | 245 | ||||||||||||||
Balance as of December 31, 2020 | $ | 2,041,536 | $ | 104,399 | $ | 2,145,935 |
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Consolidated | |||||||||||||||||||
Balance as of January 1, 2021 | $ | 1,462,217 | $ | 579,319 | $ | 104,399 | $ | 2,145,935 | |||||||||||||||
Acquisitions | 1,267 | 168,031 | — | 169,298 | |||||||||||||||||||
Dispositions | (1,446) | — | — | (1,446) | |||||||||||||||||||
Foreign currency | — | — | (206) | (206) | |||||||||||||||||||
Balance as of December 31, 2021 | $ | 1,462,038 | $ | 747,350 | $ | 104,193 | $ | 2,313,581 |
(In thousands) | Available-for-Sale Debt Securities | Equity Method Investments | Other Investments | Marketable Equity Securities | Total Investments | ||||||||||||||||||||||||
Balance at December 31, 2019 (Successor) | $ | 33,128 | $ | 10,952 | $ | 16,989 | $ | 2,700 | $ | 63,769 | |||||||||||||||||||
Purchases of investments | 9,595 | 1,523 | 7,629 | — | 18,747 | ||||||||||||||||||||||||
Equity in loss | — | (379) | — | — | (379) | ||||||||||||||||||||||||
Disposals | (194) | (1,000) | (1,194) | ||||||||||||||||||||||||||
Distributions received | — | (31) | — | — | (31) | ||||||||||||||||||||||||
Loss on investments | (7,116) | — | (959) | (1,271) | (9,346) | ||||||||||||||||||||||||
Other | (3,957) | — | 2,965 | — | (992) | ||||||||||||||||||||||||
Balance at December 31, 2020 (Successor) | $ | 31,456 | $ | 11,065 | $ | 26,624 | $ | 1,429 | $ | 70,574 | |||||||||||||||||||
Purchases of investments | 7,263 | 690 | 15,368 | — | 23,321 | ||||||||||||||||||||||||
Equity in loss | — | (1,138) | — | — | (1,138) | ||||||||||||||||||||||||
Disposals | (426) | — | (1,172) | — | (1,598) | ||||||||||||||||||||||||
Gain (loss) on investments, net | (62) | — | (8,680) | 2,801 | (5,941) | ||||||||||||||||||||||||
Other | (4,363) | — | 5,070 | — | 707 | ||||||||||||||||||||||||
Balance at December 31, 2021 (Successor) | $ | 33,868 | $ | 10,617 | $ | 37,210 | $ | 4,230 | $ | 85,925 |
(In thousands) | Successor Company | ||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||
Term Loan Facility due 2026 | $ | 1,864,032 | $ | 2,080,259 | |||||||
Incremental Term Loan Facility due 2026 | 401,220 | 447,750 | |||||||||
Asset-based Revolving Credit Facility due 2023(1) | — | — | |||||||||
6.375% Senior Secured Notes due 2026 | 800,000 | 800,000 | |||||||||
5.25% Senior Secured Notes due 2027 | 750,000 | 750,000 | |||||||||
4.75% Senior Secured Notes due 2028 | 500,000 | 500,000 | |||||||||
Other secured subsidiary debt(2) | 5,350 | 22,753 | |||||||||
Total consolidated secured debt | 4,320,602 | 4,600,762 | |||||||||
8.375% Senior Unsecured Notes due 2027 | 1,450,000 | 1,450,000 | |||||||||
Other unsecured subsidiary debt | 90 | 6,782 | |||||||||
Original issue discount | (13,454) | (18,817) | |||||||||
Long-term debt fees | (18,370) | (21,797) | |||||||||
Total debt | 5,738,868 | 6,016,930 | |||||||||
Less: Current portion | 673 | 34,775 | |||||||||
Total long-term debt | $ | 5,738,195 | $ | 5,982,155 |
(in thousands) | |||||
2022 | $ | 673 | |||
2023 | 639 | ||||
2024 | 338 | ||||
2025 | 220 | ||||
2026 | 3,065,381 | ||||
Thereafter | 2,703,441 | ||||
Total (1) | $ | 5,770,692 |
(In thousands) | |||||||||||
Non-Cancelable | Employment/Talent | ||||||||||
Contracts | Contracts | ||||||||||
2022 | $ | 218,441 | $ | 83,344 | |||||||
2023 | 162,064 | 63,777 | |||||||||
2024 | 63,421 | 63,052 | |||||||||
2025 | 31,713 | 39,096 | |||||||||
2026 | 5,591 | 13,000 | |||||||||
Thereafter | 5,810 | — | |||||||||
Total | $ | 487,040 | $ | 262,269 |
(In thousands) | Successor Company | Predecessor Company | ||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2019 | |||||||||||||||||||||||
Current – Federal | $ | (2,169) | $ | (652) | $ | (172) | $ | 2,264 | ||||||||||||||||||
Current – foreign | (2,177) | (1,674) | (754) | (282) | ||||||||||||||||||||||
Current – state | (14,919) | 1,680 | (10,045) | 74,762 | ||||||||||||||||||||||
Total current benefit (expense) | (19,265) | (646) | (10,971) | 76,744 | ||||||||||||||||||||||
Deferred – Federal | 932 | 172,302 | (14,470) | (109,511) | ||||||||||||||||||||||
Deferred – foreign | 976 | 28 | 23 | (8) | ||||||||||||||||||||||
Deferred – state | 8,966 | 11,939 | 5,327 | (6,320) | ||||||||||||||||||||||
Total deferred benefit (expense) | 10,874 | 184,269 | (9,120) | (115,839) | ||||||||||||||||||||||
Income tax benefit (expense) | $ | (8,391) | $ | 183,623 | $ | (20,091) | $ | (39,095) |
Successor Company | |||||||||||
(In thousands) | 2021 | 2020 | |||||||||
Deferred tax liabilities: | |||||||||||
Intangibles and fixed assets | $ | 931,406 | $ | 1,005,116 | |||||||
Operating lease right-of-use assets | 187,938 | 204,953 | |||||||||
Total deferred tax liabilities | 1,119,344 | 1,210,069 | |||||||||
Deferred tax assets: | |||||||||||
Accrued expenses | 22,003 | 23,052 | |||||||||
Net operating loss carryforwards | 157,095 | 218,290 | |||||||||
Interest expense carryforwards | 337,660 | 315,304 | |||||||||
Operating lease liabilities | 210,227 | 209,010 | |||||||||
Capital loss carryforwards | 1,651,413 | 1,662,174 | |||||||||
Investments | 18,956 | 15,378 | |||||||||
Bad debt reserves | 13,078 | 15,247 | |||||||||
Other | 4,833 | 13,228 | |||||||||
Total gross deferred tax assets | 2,415,265 | 2,471,683 | |||||||||
Less: Valuation allowance | 1,854,143 | 1,818,091 | |||||||||
Total deferred tax assets | 561,122 | 653,592 | |||||||||
Net deferred tax liabilities | $ | 558,222 | $ | 556,477 |
Successor Company | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Period from May 2, 2019 through December 31, | |||||||||||||||||||||||||||||||||
(In thousands) | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||
Income tax benefit (expense) at statutory rates | $ | 31,500 | 21.0 | % | 440,758 | 21.0 | % | $ | (28,012) | 21.0 | % | ||||||||||||||||||||||||
State income taxes, net of federal tax effect | 3,325 | 2.2 | % | 13,619 | 0.7 | % | (4,718) | 3.5 | % | ||||||||||||||||||||||||||
Foreign income taxes | (978) | (0.7) | % | (1,187) | (0.1) | % | (1,593) | 1.2 | % | ||||||||||||||||||||||||||
Nondeductible items | (10,264) | (6.8) | % | (8,928) | (0.4) | % | (7,345) | 5.5 | % | ||||||||||||||||||||||||||
Changes in valuation allowance and other estimates | (35,093) | (23.4) | % | (30,531) | (1.5) | % | 24,439 | (18.2) | % | ||||||||||||||||||||||||||
Impairment charges | — | — | % | (257,119) | (12.3) | % | — | — | % | ||||||||||||||||||||||||||
Tax credits | 4,831 | 3.2 | % | 3,353 | 0.2 | % | — | — | % | ||||||||||||||||||||||||||
Other, net | (1,712) | (1.1) | % | 23,658 | 1.1 | % | (2,862) | 2.1 | % | ||||||||||||||||||||||||||
Income tax benefit (expense) | $ | (8,391) | (5.6) | % | $ | 183,623 | 8.7 | % | $ | (20,091) | 15.1 | % |
Predecessor Company | |||||||||||
Period from January 1, 2019 through May 1, | |||||||||||
(In thousands) | 2019 | ||||||||||
Amount | Percent | ||||||||||
Income tax expense at statutory rates | $ | (1,999,008) | 21.0 | % | |||||||
State income taxes, net of federal tax effect | 68,442 | (0.7) | % | ||||||||
Foreign income taxes | (270) | — | % | ||||||||
Nondeductible items | (1,793) | — | % | ||||||||
Changes in valuation allowance and other estimates | 648,384 | (6.8) | % | ||||||||
Reorganization and fresh start adjustments | 1,245,282 | (13.1) | % | ||||||||
Other, net | (132) | — | % | ||||||||
Income tax expense | $ | (39,095) | 0.4 | % |
(In thousands) | Successor Company | ||||||||||
Years Ended December 31, | |||||||||||
Unrecognized Tax Benefits | 2021 | 2020 | |||||||||
Balance at beginning of period | $ | 14,681 | $ | 13,664 | |||||||
Increases for tax position taken in the current year | 1,911 | 2,325 | |||||||||
Increases for tax positions taken in previous years | 2,937 | 453 | |||||||||
Decreases for tax position taken in previous years | (217) | (1,566) | |||||||||
Decreases due to lapse of statute of limitations | (1,267) | (195) | |||||||||
Balance at end of period | $ | 18,045 | $ | 14,681 |
Year Ended December 31, | Period from May 2, 2019 through December 31, | ||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Expected volatility | 56% | 44% – 57% | 44% – 45% | ||||||||||||||
Expected life in years | 6.2 – 6.3 | 6.0 – 6.3 | 4.0 – 4.1 | ||||||||||||||
Risk-free interest rate | 0.79% – 1.15% | 0.35% – 1.41% | 1.40% – 2.02% | ||||||||||||||
Dividend yield | —% | —% | —% |
(In thousands, except per share data) | Options | Price | Weighted Average Remaining Contractual Term | ||||||||||||||
Outstanding, January 1, 2021 | 7,695 | $ | 16.01 | 5.9 years | |||||||||||||
Granted | 296 | 19.20 | |||||||||||||||
Exercised | (244) | 16.72 | |||||||||||||||
Forfeited | (112) | 13.89 | |||||||||||||||
Expired | (20) | 19.00 | |||||||||||||||
Outstanding, December, 31, 2021 | 7,615 | 16.14 | 5.1 years | ||||||||||||||
Exercisable | 3,565 | 17.52 | 4.1 years | ||||||||||||||
Expected to Vest | 4,050 | 14.93 | 6.0 years |
(In thousands, except per share data) | Options | Weighted Average Grant Date Fair Value | |||||||||
Unvested, January 1, 2021 | 5,491 | $ | 5.06 | ||||||||
Granted | 296 | 10.28 | |||||||||
Vested (1) | (1,625) | 5.10 | |||||||||
Forfeited | (112) | 5.00 | |||||||||
Unvested, December 31, 2021 | 4,050 | 5.43 |
(In thousands, except per share data) | Awards | Price | |||||||||
Outstanding, January 1, 2021 | 2,578 | $ | 14.42 | ||||||||
Granted | 298 | 21.57 | |||||||||
Vested (restriction lapsed) | (832) | 14.87 | |||||||||
Forfeited | (78) | 17.41 | |||||||||
Outstanding, December 31, 2021 | 1,966 | 15.20 |
(In thousands, except per share data) | Awards | Price | |||||||||
Outstanding, January 1, 2021 | 556 | $ | 8.98 | ||||||||
Granted | — | — | |||||||||
Vested (restriction lapsed) | — | — | |||||||||
Forfeited | — | — | |||||||||
Outstanding, December 31, 2021 | 556 | $ | 8.98 |
(In thousands, except share and per share data) | December 31, 2021 | ||||
Successor Class A Common Stock, par value $.001 per share, 1,000,000,000 shares authorized | 120,633,937 | ||||
Successor Class B Common Stock, par value $.001 per share, 1,000,000,000 shares authorized | 21,590,192 | ||||
Successor Special Warrants | 5,304,430 | ||||
Total Successor Class A Common Stock, Class B Common Stock and Special Warrants issued and outstanding | 147,528,559 |
(In thousands, except per share data) | Successor Company | Predecessor Company | ||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2019 | |||||||||||||||||||||||
NUMERATOR: | ||||||||||||||||||||||||||
Net income (loss) attributable to the Company – common shares | $ | (159,199) | $ | (1,914,699) | $ | 112,548 | $ | 11,184,141 | ||||||||||||||||||
Exclude: | ||||||||||||||||||||||||||
Income from discontinued operations, net of tax | $ | — | $ | — | $ | — | $ | 1,685,123 | ||||||||||||||||||
Noncontrolling interest from discontinued operations, net of tax - common shares | — | — | 19,028 | |||||||||||||||||||||||
Total income from discontinued operations, net of tax - common shares | $ | — | $ | — | $ | — | $ | 1,704,151 | ||||||||||||||||||
Total income (loss) from continuing operations | $ | (159,199) | $ | (1,914,699) | $ | 112,548 | $ | 9,479,990 | ||||||||||||||||||
Noncontrolling interest from continuing operations, net of tax - common shares | (810) | 523 | (751) | — | ||||||||||||||||||||||
Income (loss) from continuing operations | $ | (158,389) | $ | (1,915,222) | $ | 113,299 | $ | 9,479,990 | ||||||||||||||||||
DENOMINATOR(1): | ||||||||||||||||||||||||||
Weighted average common shares outstanding - basic | 146,726 | 145,979 | 145,608 | 86,241 | ||||||||||||||||||||||
Stock options and restricted stock(2): | — | — | 187 | — | ||||||||||||||||||||||
Weighted average common shares outstanding - diluted | 146,726 | 145,979 | 145,795 | 86,241 | ||||||||||||||||||||||
Net income (loss) attributable to the Company per common share: | ||||||||||||||||||||||||||
From continuing operations - Basic | $ | (1.09) | $ | (13.12) | $ | 0.77 | $ | 109.92 | ||||||||||||||||||
From discontinued operations - Basic | $ | — | $ | — | $ | — | $ | 19.76 | ||||||||||||||||||
From continuing operations - Diluted | $ | (1.09) | $ | (13.12) | $ | 0.77 | $ | 109.92 | ||||||||||||||||||
From discontinued operations - Diluted | $ | — | $ | — | $ | — | $ | 19.76 | ||||||||||||||||||
(In thousands) | Successor Company | Predecessor Company | ||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2019 | |||||||||||||||||||||||
Professional fees | $ | (1,389) | $ | (6,278) | $ | (26,487) | $ | (156) | ||||||||||||||||||
Loss on extinguishment of debt | (11,600) | — | — | — | ||||||||||||||||||||||
Other | (1,987) | (1,473) | 8,221 | 179 | ||||||||||||||||||||||
Total other income (expense), net | $ | (14,976) | $ | (7,751) | $ | (18,266) | $ | 23 |
(In thousands) | Successor Company | ||||||||||
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Inventory | $ | 3,154 | $ | 1,153 | |||||||
Deposits | 3,098 | 2,680 | |||||||||
Restricted cash | 425 | — | |||||||||
Due from related parties | 391 | 549 | |||||||||
Other receivables | 17,363 | 11,905 | |||||||||
Other | — | 1,139 | |||||||||
Total other current assets | $ | 24,431 | $ | 17,426 |
Successor Company | |||||||||||
(In thousands) | As of December 31, | ||||||||||
2021 | 2020 | ||||||||||
Investments in, and advances to, nonconsolidated affiliates | $ | 10,617 | $ | 11,065 | |||||||
Other investments | 41,440 | 28,053 | |||||||||
Available-for-sale debt securities, net of reserve of $7,975 in 2021 and $4,167 in 2020 | 33,868 | 31,456 | |||||||||
Deposits | 4,769 | 4,553 | |||||||||
Prepaid rent | 17,182 | 8,882 | |||||||||
Non-qualified plan assets | 12,909 | 12,265 | |||||||||
Other | 5,928 | 9,350 | |||||||||
Total other assets | $ | 126,713 | $ | 105,624 |
(In thousands) | Successor Company | ||||||||||
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Unrecognized tax benefits | $ | 20,685 | $ | 18,183 | |||||||
Asset retirement obligation | 4,491 | 3,951 | |||||||||
Non-qualified plan liabilities | 12,909 | 12,265 | |||||||||
Deferred income | 28,020 | 22,018 | |||||||||
Other | 14,792 | 14,800 | |||||||||
Total other long-term liabilities | $ | 80,897 | $ | 71,217 |
(In thousands) | Successor Company | ||||||||||
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Cumulative currency translation adjustment | $ | (257) | $ | 194 | |||||||
Cumulative other adjustments | — | — | |||||||||
Total accumulated other comprehensive income (loss) | $ | (257) | $ | 194 |
Segments | |||||||||||||||||||||||||||||||||||
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Corporate and other reconciling items | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||
Revenue | $ | 2,489,018 | $ | 834,482 | $ | 247,957 | $ | — | $ | (13,117) | $ | 3,558,340 | |||||||||||||||||||||||
Operating expenses(1) | 1,745,680 | 573,835 | 171,766 | 269,043 | (13,117) | 2,747,207 | |||||||||||||||||||||||||||||
Segment Adjusted EBITDA(2) | $ | 743,338 | $ | 260,647 | $ | 76,191 | $ | (269,043) | $ | — | $ | 811,133 | |||||||||||||||||||||||
Depreciation and amortization | (469,417) | ||||||||||||||||||||||||||||||||||
Impairment charges | (57,734) | ||||||||||||||||||||||||||||||||||
Other operating expense, net | (32,320) | ||||||||||||||||||||||||||||||||||
Restructuring expenses | (73,262) | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | (23,543) | ||||||||||||||||||||||||||||||||||
Operating income | $ | 154,857 | |||||||||||||||||||||||||||||||||
Segment assets | $ | 6,953,772 | $ | 1,088,471 | $ | 438,773 | $ | 403,898 | $ | (3,605) | $ | 8,881,309 | |||||||||||||||||||||||
Intersegment revenues | 670 | 5,845 | 6,602 | — | — | 13,117 | |||||||||||||||||||||||||||||
Capital expenditures | 130,894 | 23,907 | 14,515 | 14,056 | — | 183,372 | |||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | 23,543 | — | 23,543 | |||||||||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||||||||
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Corporate and other reconciling items | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
Revenue | $ | 2,206,854 | $ | 474,371 | $ | 274,749 | $ | — | $ | (7,756) | $ | 2,948,218 | |||||||||||||||||||||||
Operating expenses(1) | 1,723,449 | 343,598 | 180,081 | 170,173 | (7,756) | 2,409,545 | |||||||||||||||||||||||||||||
Segment Adjusted EBITDA(2) | $ | 483,405 | $ | 130,773 | $ | 94,668 | $ | (170,173) | $ | — | $ | 538,673 | |||||||||||||||||||||||
Depreciation and amortization | (402,929) | ||||||||||||||||||||||||||||||||||
Impairment charges | (1,738,752) | ||||||||||||||||||||||||||||||||||
Other operating expense, net | (11,344) | ||||||||||||||||||||||||||||||||||
Restructuring expenses | (100,410) | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | (22,862) | ||||||||||||||||||||||||||||||||||
Operating loss | $ | (1,737,624) | |||||||||||||||||||||||||||||||||
Segment assets | $ | 7,736,229 | $ | 187,051 | $ | 473,628 | $ | 809,638 | $ | (3,585) | $ | 9,202,961 | |||||||||||||||||||||||
Intersegment revenues | 670 | — | 7,086 | — | — | 7,756 | |||||||||||||||||||||||||||||
Capital expenditures | 51,559 | 16,086 | 5,105 | 12,455 | — | 85,205 | |||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | 22,862 | — | 22,862 |
Segments | |||||||||||||||||||||||||||||||||||
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Corporate and other reconciling items | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Period from May 2, 2019 through December 31, 2019 | |||||||||||||||||||||||||||||||||||
Revenue | $ | 2,174,411 | $ | 273,389 | $ | 167,292 | $ | — | $ | (5,036) | $ | 2,610,056 | |||||||||||||||||||||||
Operating expenses(1) | 1,381,073 | 194,366 | 120,685 | 143,420 | (5,036) | 1,834,508 | |||||||||||||||||||||||||||||
Segment Adjusted EBITDA(2) | $ | 793,338 | $ | 79,023 | $ | 46,607 | $ | (143,420) | $ | — | $ | 775,548 | |||||||||||||||||||||||
Depreciation and amortization | (249,623) | ||||||||||||||||||||||||||||||||||
Impairment charges | — | ||||||||||||||||||||||||||||||||||
Other operating expense, net | (8,000) | ||||||||||||||||||||||||||||||||||
Restructuring expenses | (51,878) | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | (26,411) | ||||||||||||||||||||||||||||||||||
Operating income | $ | 439,636 | |||||||||||||||||||||||||||||||||
Segment Assets | $ | 9,949,638 | $ | 73,108 | $ | 486,551 | $ | 515,580 | $ | (3,778) | $ | 11,021,099 | |||||||||||||||||||||||
Intersegment revenues | $ | 447 | $ | — | $ | 4,589 | $ | — | $ | — | $ | 5,036 | |||||||||||||||||||||||
Capital expenditures | $ | 48,096 | $ | 10,505 | $ | 3,980 | $ | 13,412 | $ | — | $ | 75,993 | |||||||||||||||||||||||
Share-based compensation expense | $ | — | $ | — | $ | — | $ | 26,411 | $ | — | $ | 26,411 |
Segments | |||||||||||||||||||||||||||||||||||
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Corporate and other reconciling items | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Period from January 1, 2019 through May 1, 2019 | |||||||||||||||||||||||||||||||||||
Revenue | $ | 903,888 | $ | 102,789 | $ | 69,362 | $ | — | $ | (2,568) | $ | 1,073,471 | |||||||||||||||||||||||
Operating expenses(1) | 635,205 | 88,621 | 55,278 | 71,785 | (2,568) | 848,321 | |||||||||||||||||||||||||||||
Segment Adjusted EBITDA(2) | $ | 268,683 | $ | 14,168 | $ | 14,084 | $ | (71,785) | $ | — | $ | 225,150 | |||||||||||||||||||||||
Depreciation and amortization | (52,834) | ||||||||||||||||||||||||||||||||||
Impairment charges | (91,382) | ||||||||||||||||||||||||||||||||||
Other operating expense, net | (154) | ||||||||||||||||||||||||||||||||||
Restructuring expenses | (13,242) | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | (498) | ||||||||||||||||||||||||||||||||||
Operating loss | $ | 67,040 | |||||||||||||||||||||||||||||||||
Intersegment revenues | $ | 243 | $ | — | $ | 2,325 | $ | — | $ | — | $ | 2,568 | |||||||||||||||||||||||
Capital expenditures | $ | 25,270 | $ | 4,694 | $ | 1,263 | $ | 4,970 | $ | — | $ | 36,197 | |||||||||||||||||||||||
Share-based compensation expense | $ | — | $ | — | $ | — | $ | 498 | $ | — | $ | 498 |
(In thousands, except per share data) | |||||
Enterprise Value | $ | 8,750,000 | |||
Plus: | |||||
Cash and cash equivalents | 63,142 | ||||
Less: | |||||
Debt issued upon emergence | (5,748,178) | ||||
Finance leases and short-term notes | (61,939) | ||||
Mandatorily Redeemable Preferred Stock | (60,000) | ||||
Changes in deferred tax liabilities(1) | (163,910) | ||||
Noncontrolling interest | (8,943) | ||||
Implied value of Successor Company common stock | $ | 2,770,172 | |||
Shares issued upon emergence (2) | 145,263 | ||||
Per share value | $ | 19.07 |
(In thousands) | Separation of CCOH Adjustments | Reorganization Adjustments | Fresh Start Adjustments | ||||||||||||||||||||||||||
Predecessor | (A) | (B) | (C) | Successor | |||||||||||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 175,811 | $ | — | $ | (112,669) | (1) | $ | — | $ | 63,142 | ||||||||||||||||||
Accounts receivable, net | 748,326 | — | — | (10,810) | (1) | 737,516 | |||||||||||||||||||||||
Prepaid expenses | 127,098 | — | — | (24,642) | (2) | 102,456 | |||||||||||||||||||||||
Other current assets | 22,708 | — | 8,125 | (2) | (1,668) | (3) | 29,165 | ||||||||||||||||||||||
Current assets of discontinued operations | 1,000,753 | (1,000,753) | (1) | — | — | — | |||||||||||||||||||||||
Total Current Assets | 2,074,696 | (1,000,753) | (104,544) | (37,120) | 932,279 | ||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||||||||||||||||||||
Property, plant and equipment, net | 499,001 | — | — | 333,991 | (4) | 832,992 | |||||||||||||||||||||||
INTANGIBLE ASSETS AND GOODWILL | |||||||||||||||||||||||||||||
Indefinite-lived intangibles - licenses | 2,326,626 | — | — | (44,906) | (5) | 2,281,720 | |||||||||||||||||||||||
Other intangibles, net | 104,516 | — | — | 2,240,890 | (5) | 2,345,406 | |||||||||||||||||||||||
Goodwill | 3,415,492 | — | — | (92,127) | (5) | 3,323,365 | |||||||||||||||||||||||
OTHER ASSETS | |||||||||||||||||||||||||||||
Operating lease right-of-use assets | 355,826 | — | — | 554,278 | (6) | 910,104 | |||||||||||||||||||||||
Other assets | 139,409 | — | (384) | (3) | (54,683) | (2) | 84,342 | ||||||||||||||||||||||
Long-term assets of discontinued operations | 5,351,513 | (5,351,513) | (1) | — | — | — | |||||||||||||||||||||||
Total Assets | $ | 14,267,079 | $ | (6,352,266) | $ | (104,928) | $ | 2,900,323 | $ | 10,710,208 | |||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||||||||||||
Accounts payable | $ | 41,847 | $ | — | $ | 3,061 | (4) | $ | — | $ | 44,908 | ||||||||||||||||||
Current operating lease liabilities | 470 | — | 31,845 | (7) | 39,092 | (6) | 71,407 | ||||||||||||||||||||||
Accrued expenses | 208,885 | — | (32,250) | (5) | 2,328 | (9) | 178,963 | ||||||||||||||||||||||
Accrued interest | 462 | — | (462) | (6) | — | — | |||||||||||||||||||||||
Deferred revenue | 128,452 | — | — | 3,214 | (7) | 131,666 | |||||||||||||||||||||||
Current portion of long-term debt | 46,618 | — | 6,529 | (7) | 40 | (6) | 53,187 | ||||||||||||||||||||||
Current liabilities of discontinued operations | 999,778 | (999,778) | (1) | — | — | — | |||||||||||||||||||||||
Total Current Liabilities | 1,426,512 | (999,778) | 8,723 | 44,674 | 480,131 | ||||||||||||||||||||||||
Long-term debt | — | — | 5,758,516 | (8) | (1,586) | (8) | 5,756,930 | ||||||||||||||||||||||
Series A Mandatorily Redeemable Preferred Stock | — | — | 60,000 | (9) | — | 60,000 | |||||||||||||||||||||||
Noncurrent operating lease liabilities | 828 | — | 398,154 | (7) | 419,897 | (6) | 818,879 | ||||||||||||||||||||||
Deferred income taxes | — | — | 575,341 | (10) | 185,419 | (10) | 760,760 | ||||||||||||||||||||||
Other long-term liabilities | 121,081 | — | (64,524) | (11) | (2,164) | (7) | 54,393 | ||||||||||||||||||||||
Liabilities subject to compromise | 16,770,266 | — | (16,770,266) | (7) | — | — | |||||||||||||||||||||||
Long-term liabilities of discontinued operations | 7,472,633 | (7,472,633) | (1) | — | — | — | |||||||||||||||||||||||
Commitments and contingent liabilities (Note 7) | |||||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||||||||||||||||||||
Noncontrolling interest | 13,584 | (13,199) | (1) | — | 8,558 | (11) | 8,943 | ||||||||||||||||||||||
Predecessor common stock | 92 | — | (92) | (12) | — | — | |||||||||||||||||||||||
Successor Class A Common Stock | — | — | 57 | (13) | — | 57 | |||||||||||||||||||||||
Successor Class B Common Stock | — | — | 7 | (13) | — | 7 | |||||||||||||||||||||||
Predecessor additional paid-in capital | 2,075,130 | — | (2,075,130) | (12) | — | — | |||||||||||||||||||||||
Successor additional paid-in capital | — | — | 2,770,108 | (13) | — | 2,770,108 | |||||||||||||||||||||||
Accumulated deficit | (13,288,497) | 1,825,531 | (1) | 9,231,616 | (14) | 2,231,350 | (12) | — | |||||||||||||||||||||
Accumulated other comprehensive loss | (321,988) | 307,813 | (1) | — | 14,175 | (12) | — | ||||||||||||||||||||||
Cost of share held in treasury | (2,562) | — | 2,562 | (12) | — | — | |||||||||||||||||||||||
Total Stockholders' Equity (Deficit) | (11,524,241) | 2,120,145 | 9,929,128 | 2,254,083 | 2,779,115 | ||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 14,267,079 | $ | (6,352,266) | $ | (104,928) | $ | 2,900,323 | $ | 10,710,208 |
(In thousands) | ||||||||
Cash at May 1, 2019 (excluding discontinued operations) | $ | 175,811 | ||||||
Sources: | ||||||||
Proceeds from issuance of Mandatorily Redeemable Preferred Stock | $ | 60,000 | ||||||
Release of restricted cash from other assets into cash | 3,428 | |||||||
Total sources of cash | $ | 63,428 | ||||||
Uses: | ||||||||
Payment of Mandatorily Redeemable Preferred Stock issuance costs | $ | (1,513) | ||||||
Payment of New Term Loan Facility to settle certain creditor claims | (1,822) | |||||||
Payments for Emergence debt issuance costs | (7,213) | |||||||
Funding of the Guarantor General Unsecured Recovery Cash Pool | (17,500) | |||||||
Payments for fully secured claims and general unsecured claims | (1,990) | |||||||
Payment of contract cure amounts | (15,763) | |||||||
Payment of consenting stakeholder fees | (4,000) | |||||||
Payment of professional fees | (85,091) | (a) | ||||||
Funding of Professional Fees Escrow Account | (41,205) | (a) | ||||||
Total uses of cash | $ | (176,097) | ||||||
Net uses of cash | $ | (112,669) | ||||||
Cash upon emergence | $ | 63,142 |
(In thousands) | ||||||||
Liabilities subject to compromise pre-emergence | $ | 16,770,266 | ||||||
To be reinstated on the Effective Date: | ||||||||
Deferred taxes | $ | (596,850) | ||||||
Accrued expenses | (551) | |||||||
Accounts payable | (3,061) | |||||||
Finance leases and other debt | (16,867) | (a) | ||||||
Current operating lease liabilities | (31,845) | |||||||
Noncurrent operating lease liabilities | (398,154) | |||||||
Other long-term liabilities | (14,518) | (b) | ||||||
Total liabilities reinstated | $ | (1,061,846) | ||||||
Less amounts settled per the Plan of Reorganization | ||||||||
Issuance of new debt | $ | (5,750,000) | ||||||
Payments to cure contracts | (15,763) | |||||||
Payments for settlement of general unsecured claims from escrow account | (5,822) | |||||||
Payments for fully secured and other claim classes at emergence | (1,990) | |||||||
Equity issued at emergence to creditors in settlement of Liabilities subject to Compromise | (2,742,471) | |||||||
Total amounts settled | (8,516,046) | |||||||
Gain on settlement of Liabilities Subject to Compromise | $ | 7,192,374 |
(In thousands) | |||||
Reinstatement of long-term asset retirement obligations | $ | 3,527 | |||
Reinstatement of non-qualified deferred compensation plan | 10,991 | ||||
Total reinstated Other long-term liabilities | $ | 14,518 |
(In thousands) | Term | Interest Rate | Amount | ||||||||||||||
Term Loan Facility | 7 years | Libor + 4.00% | $ | 3,500,000 | |||||||||||||
6.375% Senior Secured Notes | 7 years | 6.375% | 800,000 | ||||||||||||||
Senior Unsecured Notes | 8 years | 8.375% | 1,450,000 | ||||||||||||||
Asset-based Revolving Credit Facility | 4 years | Varies(a) | — | ||||||||||||||
Total Long-Term Debt - Exit Financing | $ | 5,750,000 | |||||||||||||||
Less: | |||||||||||||||||
Payment of Term Loan Facility to settle certain creditor claims | (1,822) | ||||||||||||||||
Net proceeds from exit financing at emergence | $ | 5,748,178 | |||||||||||||||
Long-term portion of finance leases and other debt reinstated | 10,338 | ||||||||||||||||
Net impact on Long-term debt | $ | 5,758,516 |
(In thousands) | |||||
Reinstatement of long-term asset retirement obligations | $ | 3,527 | |||
Reinstatement of non-qualified pension plan | 10,991 | ||||
Reduction of liabilities for unrecognized tax benefits | (79,042) | ||||
Net impact to Other long-term liabilities | $ | (64,524) |
(In thousands) | Estimated Fair Value | Estimated Useful Life | |||||||||
FCC licenses | $ | 2,281,720 | (a) | Indefinite | |||||||
Customer / advertiser relationships | 1,643,670 | (b) | 5 - 15 years | ||||||||
Talent contracts | 373,000 | (b) | 2 - 10 years | ||||||||
Trademarks and tradenames | 321,928 | (b) | 7 - 15 years | ||||||||
Other | 6,808 | (c) | |||||||||
Total intangible assets upon emergence | $ | 4,627,126 | |||||||||
Elimination of historical acquired intangible assets | (2,431,142) | ||||||||||
Fresh start adjustment to acquired intangible assets | $ | 2,195,984 |
(In thousands) | |||||
Fresh start adjustment to Accounts receivable, net | $ | (10,810) | |||
Fresh start adjustment to Other current assets | (1,668) | ||||
Fresh start adjustment to Prepaid expenses | (24,642) | ||||
Fresh start adjustment to Property, plant and equipment, net | 333,991 | ||||
Fresh start adjustment to Intangible assets | 2,195,984 | ||||
Fresh start adjustment to Goodwill | (92,127) | ||||
Fresh start adjustment to Operating lease right-of-use assets | 554,278 | ||||
Fresh start adjustment to Other assets | (54,683) | ||||
Fresh start adjustment to Accrued expenses | (2,328) | ||||
Fresh start adjustment to Deferred revenue | (3,214) | ||||
Fresh start adjustment to Debt | 1,546 | ||||
Fresh start adjustment to Operating lease obligations | (458,989) | ||||
Fresh start adjustment to Other long-term liabilities | 2,164 | ||||
Fresh start adjustment to Noncontrolling interest | (8,558) | ||||
Total Fresh Start Adjustments impacting Reorganization items, net | $ | 2,430,944 | |||
Reset of Accumulated other comprehensive income | (14,175) | ||||
Income tax expense | (185,419) | ||||
Net impact to Accumulated deficit | $ | 2,231,350 |
(In thousands) | Successor Company | Predecessor Company | ||||||||||||||||||||||||
Year Ended December 31, | Period from May 2, 2019 through December 31, | Period from January 1, 2019 through May 1, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | 2019 | |||||||||||||||||||||||
Professional fees and other bankruptcy related costs | — | — | — | (157,487) | ||||||||||||||||||||||
Net gain on settlement of Liabilities subject to compromise | — | — | — | 7,192,374 | ||||||||||||||||||||||
Impact of fresh start adjustments | — | — | — | 2,430,944 | ||||||||||||||||||||||
Other items, net | — | — | — | (4,005) | ||||||||||||||||||||||
Reorganization items, net | $ | — | $ | — | $ | — | $ | 9,461,826 | ||||||||||||||||||
Cash payments for Reorganization items, net | $ | — | $ | 443 | $ | 18,360 | $ | 183,291 |
(In thousands) | Predecessor Company | ||||
Period from January 1, 2019 through May 1, | |||||
2019 | |||||
Revenue | $ | 804,566 | |||
Loss from discontinued operations before income taxes | $ | (133,475) | |||
Income tax expense | (6,933) | ||||
Loss from discontinued operations, net of taxes | $ | (140,408) | |||
Gain on disposals before income taxes | $ | 1,825,531 | |||
Income tax expense | — | ||||
Gain on disposals, net of taxes | $ | 1,825,531 | |||
Income from discontinued operations, net of taxes | $ | 1,685,123 |
Plan Category | Number of Securities to be issued upon exercise of outstanding options, warrants and rights (Column A) | Weighted-Average exercise price of outstanding options, warrants and rights (1) | Number of Securities remaining available for future issuance under equity compensation plans (excluding securities reflected in Column A) | |||||||||||||||||
Equity Compensation Plans approved by security holders(2) | 111,030 | $ | — | 6,077,022 | ||||||||||||||||
Equity Compensation Plans not approved by security holders(3) | 10,025,572 | 16.14 | — | |||||||||||||||||
Total | 10,136,602(4) | $ | 16.14 | 6,077,022 |
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Description | Balance at Beginning of Period | Charges to Costs, Expenses and Other | Write-off of Accounts Receivable | Impact of Fresh Start Accounting | Other (1) | Balance at End of Period | ||||||||||||||||||||||||||||||||
Period from January 1, 2019 through May 1, 2019 (Predecessor) | $ | 26,584 | $ | 4,728 | $ | 8,622 | $ | (22,689) | $ | (1) | $ | — | ||||||||||||||||||||||||||
Period from May 2, 2019 through December 31, 2019 (Successor) | $ | — | $ | 12,628 | $ | — | $ | — | $ | 1 | $ | 12,629 | ||||||||||||||||||||||||||
Year ended December 31, 2020 (Successor) | $ | 12,629 | $ | 38,273 | $ | 12,738 | $ | — | $ | 613 | $ | 38,777 | ||||||||||||||||||||||||||
Year ended December 31, 2021 (Successor) | $ | 38,777 | $ | 4,144 | $ | 13,846 | $ | — | $ | 195 | $ | 29,270 |
(In thousands) | ||||||||||||||||||||||||||||||||||||||
Description | Balance at Beginning of Period | Charges to Costs, Expenses and Other (1) | Reversal (2) | Impact of Fresh Start Accounting | Adjustments(3) | Balance at End of Period | ||||||||||||||||||||||||||||||||
Period from January 1, 2019 through May 1, 2019 (Predecessor) | $ | 693,541 | $ | 714,520 | $ | (316,374) | (343,662) | $ | (28,539) | $ | 719,486 | |||||||||||||||||||||||||||
Period from May 2, 2019 through December 31, 2019 (Successor) | $ | 719,486 | $ | 1,870 | $ | (734) | $ | — | $ | — | $ | 720,622 | ||||||||||||||||||||||||||
Year ended December 31, 2020 (Successor) | $ | 720,622 | $ | 3,047 | $ | (444) | $ | — | $ | 1,094,866 | $ | 1,818,091 | ||||||||||||||||||||||||||
Year ended December 31, 2021 (Successor) | $ | 1,818,091 | $ | 62,265 | $ | (28,707) | $ | — | $ | 2,494 | $ | 1,854,143 |
Exhibit Number | Description | |||||||
2.1 | ||||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2* | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5* | ||||||||
4.6 | ||||||||
4.7 | ||||||||
4.8 | ||||||||
4.9* | ||||||||
4.10 | ||||||||
4.11 | ||||||||
4.12* |
4.13 | ||||||||
4.14 | ||||||||
4.15* | ||||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 | ||||||||
10.1 |
10.11 | ||||||||
10.12 | ||||||||
10.13§ | iHeartMedia, Inc. 2019 Incentive Equity Plan (incorporated by reference to Exhibit 10.2 of iHeartMedia, Inc.’s Current Report on Form 8-K/A filed on May 7, 2019). | |||||||
10.14§ | ||||||||
10.15§ | ||||||||
10.16§ | ||||||||
10.17§ | ||||||||
10.18§ | ||||||||
10.19§ | ||||||||
10.20§ | ||||||||
10.21§ | ||||||||
10.22§ | ||||||||
10.23§ | ||||||||
10.24§ | ||||||||
10.25§ | ||||||||
10.26§ |
10.27§ | Third Amendment to Employment Agreement, by and between iHeartMedia, Inc. and Richard J. Bressler, dated March 17, 2021 | |||||||
10.28§ | ||||||||
10.29§ | ||||||||
10.30§ | ||||||||
10.31§* | Employment Agreement, dated December 23, 2020, between iHeartMedia Management Services, Inc. and Jordan R. Fasbender. | |||||||
10.32§ | ||||||||
10.33§ | ||||||||
10.34 | ||||||||
10.35 | ||||||||
10.36 | ||||||||
10.37§ | ||||||||
10.38§ | ||||||||
21* | ||||||||
23* | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** |
101.INS* | Inline XBRL Instance Document. - the Instance Document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
By: | /s/ Robert W. Pittman | |||||||
Name: | Robert W. Pittman | |||||||
Title: | Chairman and Chief Executive Officer | |||||||
Date: | February 23, 2022 |
Name | Title | Date | ||||||
/s/ Robert W. Pittman Robert W. Pittman | Chairman and Chief Executive Officer (Principal Executive Officer) and Director | February 23, 2022 | ||||||
/s/ Richard J. Bressler Richard J. Bressler | President, Chief Operating Officer, Chief Financial Officer (Principal Financial Officer) and Director | February 23, 2022 | ||||||
/s/ Scott D. Hamilton Scott D. Hamilton | Senior Vice President, Chief Accounting Officer (Principal Accounting Officer) and Assistant Secretary | February 23, 2022 | ||||||
/s/ James A. Rasulo James A. Rasulo | Director | February 23, 2022 | ||||||
/s/ Brad Gerstner Brad Gerstner | Director | February 23, 2022 | ||||||
/s/ Cheryl Mills Cheryl Mills | Director | February 23, 2022 | ||||||
/s/ Graciela Monteagudo Graciela Monteagudo | Director | February 23, 2022 | ||||||
/s/ Kamakshi Sivaramakrishnan Kamakshi Sivaramakrishnan | Director | February 23, 2022 |
• | 100,000,000 shares of undesignated preferred stock, par value $0.001 per share; |
• | 1,000,000,000 shares of Class A common stock, par value $0.001 per share; and |
• | 1,000,000,000 shares of Class B common stock, par value $0.001 per share. |
• | prior to such time, the Board approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder; |
• | upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the Company outstanding at the time the transaction commenced, excluding shares owned by persons who are directors and also officers and by specified employee stock plans; or |
• | at or subsequent to the date of the transaction, the business combination is approved by the Board and authorized at an annual or special meeting of stockholders by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder. |
• | the redemption price of any shares to be redeemed shall be equal to the fair market value of such shares; |
• | the redemption price of the shares may be paid in (x) any debt or equity securities of the Company, any subsidiary of the Company or any other corporation or other entity, or any combination thereof (the “redemption securities”), having such terms and conditions as shall be approved by the Board and which, together with any cash to be paid as part of the redemption price, in the opinion of any nationally recognized investment banking firm selected by the Board, has a value, at the time notice of redemption is given at least equal to the fair market value of the shares to be redeemed, assuming the redemption securities were fully distributed and subject only to normal trading activity, (y) cash or (z) any combination of redemption securities or cash; |
• | if less than all such shares are to be redeemed, the shares to be redeemed shall be selected in such manner as shall be determined by the Board, which may include selection of the most recently purchased shares thereof, selection by lot or selection in any other manner determined by the Board; |
• | at least 15 days’ written notice of the redemption date will be given to the record holders of the shares selected to be redeemed (unless waived in writing by any such holder); |
• | from and after the redemption date, any and all rights of whatever nature in respect of the shares selected for redemption will cease and terminate and the holders of such shares shall thenceforth be entitled only to receive the cash or redemption securities payable upon redemption; and |
• | such other terms and conditions as the Board shall reasonably determine are required by law. |
Exhibit 21: Subsidiaries of Registrant, iHeartMedia, Inc. | |||||
Name | State of Incorporation | ||||
Austin Tower Company | TX | ||||
Broader Media Holdings, LLC | DE | ||||
The Black Effect, LLC | DE | ||||
iHM Licenses, LLC | DE | ||||
Christal Radio Sales, Inc. | DE | ||||
Critical Mass Media, Inc. | OH | ||||
iHeartCommunications, Inc. | TX | ||||
iHeartMedia + Entertainment, Inc. | NV | ||||
iHeartMedia Capital I, LLC | DE | ||||
iHeartMedia Capital II, LLC | DE | ||||
iHeartMedia Management Services, Inc. | TX | ||||
iHeart Operations, Inc. | DE | ||||
iHM Identity, Inc. | TX | ||||
Jelli, LLC | DE | ||||
Katz Communications, Inc. | DE | ||||
Katz Media Group, Inc. | DE | ||||
Katz Millennium Sales & Marketing, Inc. | DE | ||||
Katz Net Radio Sales, Inc. | DE | ||||
Los Angeles Broadcasting Partners, LLC | DE | ||||
M Street Corporation | WA | ||||
Premiere Networks, Inc. | DE | ||||
Stuff Media, LLC | DE | ||||
Tower FM Consortium, LLC | TX | ||||
TTWN Media Networks, LLC | MD | ||||
TTWN Networks, LLC | DE | ||||
Unified Enterprises Corp. | DE | ||||
Big Money Players Network, LLC | DE | ||||
Voxnest, Inc. | DE | ||||
Spreaker, Inc. | DE | ||||
BlogTalkRadio, Inc. | DE | ||||
Triton Digital, Inc. | DE | ||||
Spacial Audio Solutions, LL.C | TX | ||||
Ando Media, LLC | DE | ||||
IHMES Ventures, LLC | DE |
Name | Country of Incorporation | ||||
Aircheck India Pvt. Ltd. | India | ||||
Media Monitors (M) Sdn. Bhd. | Malaysia | ||||
Media Monitors Dominican Republic | Panama | ||||
Radio Computing Services (Africa) Pty Ltd. | South Africa | ||||
Radio Computing Services (India) Pvt. Ltd. | India | ||||
Radio Computing Services (NZ) Ltd. | New Zealand | ||||
Radio Computing Services (SEA) Pte Ltd. | Singapore | ||||
Radio Computing Services (Thailand) Ltd. | Thailand | ||||
Radio Computing Services (UK) Ltd. | United Kingdom | ||||
Radio Computing Services Canada Ltd. | Canada | ||||
Radio Computing Services of Australia Pty Ltd. | Australia | ||||
Radiojar SA | Greece | ||||
RCS Europe SARL | France | ||||
RCS Radio Computing China, Inc. | China | ||||
RCS Works Mena DMCC | Dubai | ||||
RCS Technologies Greece | Greece | ||||
V-Labs, S.r.L | Italy | ||||
Triton Digital Spain, S.L. | Spain | ||||
121cast Pty Ltd (dba Omny) | Australia | ||||
Spacial (Mauritius) Ltd. | Mauritius | ||||
Spacial South Africa (Pty) Ltd. | South Africa | ||||
Triton Digital Canada, Inc. | Canada | ||||
Triton Digital Canada, Inc. - UK Branch | United Kingdom |
/s/ Robert W. Pittman | ||
Robert W. Pittman | ||
Chairman and Chief Executive Officer |
/s/ Richard J. Bressler | ||
Richard J. Bressler | ||
President and Chief Financial Officer |
By: | /s/ Robert W. Pittman | |||||||
Name: | Robert W. Pittman | |||||||
Title: | Chairman and Chief Executive Officer |
By: | /s/ Richard J. Bressler | |||||||
Name: | Richard J. Bressler | |||||||
Title: | President and Chief Financial Officer |