CITADEL BROADCASTING CORP

CIK:0001174527|SEC Filings

Earnings Per Share

6 Months Ended

Jun. 30, 2011

12. Earnings Per Share

Successor

Basic earnings per share for the three and six months ended June 30, 2011 included the outstanding amount of both class A and class B common stock, Special Warrants, whether outstanding or held in reserve to be issued, as well as 0.7 million outstanding nonvested shares of class A common stock. The Company's class A and class B common stock and Special Warrants, including warrants held in reserve, are treated equally for accounting purposes, and the distinctions relate solely to certain voting restrictions and conversion mechanisms in order to allow the Company to comply with applicable FCC rules and regulations. Diluted earnings per share is computed in the same manner as basic earnings per share after assuming issuance of common stock for all potentially dilutive equivalent shares. There were no potentially dilutive equivalent shares related to options to purchase shares of class A common stock for the three and six months ended June 30, 2011.

Predecessor


	Predecessor
	Period from April 1, 2010 through May 31, 2010		Period from January 1, 2010 through May 31, 2010
	(In thousands, except per share data)

NUMERATOR:
Income available to common stockholders	$	1,058,227	$	1,069,707
DENOMINATOR:
Weighted average common shares		265,977		266,041
Effect of dilutive securities:
Convertible subordinated notes		1,920		1,920

Denominator for net income per common share—diluted		267,897		267,961

Net income per common share:
Basic	$	3.98	$	4.02

Diluted	$	3.95	$	3.99

The diluted shares outstanding for each of the two and five months ended May 31, 2010 included approximately 1.9 million shares of common stock of the Predecessor related to the conversion of the Predecessor's convertible subordinated notes. While operating under Chapter 11 of the Bankruptcy Code, the Predecessor was prohibited from paying unsecured pre-petition debts, including the convertible subordinated notes and interest thereon. Therefore, for the two and five months ended May 31, 2010, there was no related interest expense to consider in the calculation of the Predecessor's diluted shares. There were no potentially dilutive equivalent shares related to nonvested shares of common stock or options to purchase shares of common stock for the two and five months ended May 31, 2010.

Consolidated Condensed Statements Of Cash Flows (USD $) In Thousands	1 Months Ended	6 Months Ended	5 Months Ended
	Jun. 30, 2010 Successor	Jun. 30, 2011 Successor	May 31, 2010 Predecessor
Cash flows from operating activities:
Net income	$ 3,130	$ 2,101	$ 1,069,705
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	8,592	46,117	11,365
Write-off of deferred financing costs		1,048
Non-cash debt-related amounts	(439)	1,893
Reorganization items, net			(1,063,639)
Provision for bad debts	221	(647)	578
Loss on sale of assets		404	708
Deferred income taxes	4,483	693	5,150
Non-cash compensation expense		24,216	1,881
Changes in operating assets and liabilities:
Accounts receivable	(5,514)	(2,599)	13,884
Prepaid expenses and other current assets	(1,899)	(7,268)	(900)
Accounts payable, accrued liabilities and other obligations	(12,705)	(11,908)	5,855
Net cash provided by (used in) operating activities	(4,131)	54,050	44,587
Cash flows from investing activities:
Capital expenditures	(430)	(4,128)	(3,409)
FCC license upgrade		(65)
Proceeds from sale of assets		1,953	5
Restricted cash	605	1,514	(7,773)
Other assets, net	8	128	25
Net cash (used in) provided by investing activities	183	(598)	(11,152)
Cash flows from financing activities:
Debt issuance costs		(162)
Principal payments on other long-term obligations	(8)	(36)	(125)
Purchase of shares held in treasury		(6,575)	(5)
Principal payments on Credit Facility		(53,500)
Net cash used in financing activities	(8)	(60,273)	(130)
Net (decrease) increase in cash and cash equivalents	(3,956)	(6,821)	33,305
Cash and cash equivalents, beginning of period	90,746	111,624	57,441
Cash and cash equivalents, end of period	86,790	104,803	90,746
Supplemental schedule of cash flow information
Interest	7,058	23,537	24,478
Income taxes	93	(469)	481
Reorganization items - cash paid for professional fees			17,651
Reorganization items - cash paid to unsecured creditors		1,514	31,911
Barter Transactions:
Barter revenue - included in net revenue	1,572	9,033	7,574
Barter expenses - included in cost of revenue and selling, general and administrative expense	1,497	8,734	7,278
Other Non-Cash Transaction:
Issuance of notes receivable for sale of station		$ 3,750

Consolidated Condensed Balance Sheets (Successor, USD $) In Thousands	Jun. 30, 2011 Class A common stock	Dec. 31, 2010 Class A common stock	Jun. 30, 2011 Class B common stock	Dec. 31, 2010 Class B common stock	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents					$ 104,803	$ 111,624
Accounts receivable, net					142,401	138,751
Prepaid expenses and other current assets (including deferred income tax assets of $12,049 and $23,023 as of June 30, 2011 and December 31, 2010, respectively)					31,937	37,418
Total current assets					279,141	287,793
Long-term assets
Property and equipment, net					196,008	200,121
FCC licenses					887,975	893,610
Goodwill					763,849	763,849
Customer and affiliate relationships, net					162,085	195,080
Other assets, net					63,296	67,661
Total assets					2,352,354	2,408,114
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable, accrued liabilities and other liabilities					49,850	56,661
Senior debt, current						3,500
Total current liabilities					49,850	60,161
Long-term liabilities
Senior debt, less current portion					296,500	346,500
Senior notes					400,000	400,000
Other long-term liabilities, less current portion					54,068	58,342
Deferred income tax liabilities					255,756	268,454
Total liabilities					1,056,174	1,133,457
Commitments and contingencies
Stockholders' equity
Preferred stock, $.001 par value - authorized, 50,000,000 shares at June 30, 2011 and December 31, 2010; no shares issued or outstanding at June 30, 2011 and December 31, 2010
Common stock	5	5	19	18
Treasury stock, at cost, 197,748 shares at June 30, 2011					(6,575)
Equity held in reserve					7,887	13,182
Additional paid-in capital (including 22,933,523 and 23,682,484 special warrants as of June 30, 2011 and December 31, 2010, respectively)					1,294,526	1,263,235
Retained earnings (accumulated deficit)					318	(1,783)
Total stockholders' equity					1,296,180	1,274,657
Total liabilities and stockholders' equity					$ 2,352,354	$ 2,408,114