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GUARANTOR ARRANGEMENTS (Block) | 12 Months Ended
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Dec. 31, 2015
Disclosure Text Block Supplement Abstract |
Commitments Contingencies And Guarantees Text Block | 21. GUARANTOR ARRANGEMENTS Guarantor Arrangements T he Company recognizes, at the inception of a guarantee, a liability for the fair value of the obligation undertaken by issuing the guarantee. The following is a summary of agreements that the Company has determined are within the scope of guarantor arrangements: The Company enters into indemnification agreements in the ordinary course of business. Under these agreements, the Company typically indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company believes that the estimated fair value of these agreements is minimal. Accordingly, the Company has not recorded liabilities for these agreements as of December 31, 2015. Under the Company’s Credit Facility, the Company is required to reimburse lenders for any increased costs that they may incur in the event o f a change in law, rule or regulation resulting in their reduced returns from any change in capital requirements. The Company cannot estimate the potential amount of any future payment under this provision, nor can the Company predict if such an event will ever occur. In connection with many of the Company’s acquisitions, the Company enters into time brokerage agreements or local marketing agreements for specified periods of time, usually six months or less, whereby the Company typically indemnifies the ow ner and operator of the radio station, their employees, agents and contractors from liability, claims and damages arising from the activities of operating the radio station under such agreements. The maximum potential amount of any future payments the Comp any could be required to make for any such previous indemnification obligations is indeterminable at this time. The Company has not, however, previously incurred any significant costs to defend lawsuits or settle claims relating to any such indemnification obligation. Financial Statements Of Parent The condensed financial data of the Parent Company has been prepared in accordance with Rule 12-04 of Regulation S-X. The P aren t C ompany’s financial data includes the financial data of Entercom Communications Corp., excluding all subsidiaries. The most significant restrictions on the payment of dividends by Radio (as contemplated by Rule 4-08(e) of Regulation S-X) are set forth in the Credit Facility and the indenture governing the Senior No tes. Under both the Credit Facility and the indenture governing the Senior Notes, Radio is permitted to make distributions to the Parent Company in amounts, as defined, as follow: (a) amounts which are required to pay the Parent Company’s reasonable overhead costs, including income taxes and other costs associated with conducting the operations of Radio and its subsidiaries; and (b) certain amounts which qualify as “Restricted Paym ents.” With respect to the Credit Facility, the permitted Restricted Payment is generally $40 million plus Cumulative Retained Excess Cash Flow. The Company’s ability to make a Restricted Payment in these amounts under the Credit Facility is a function of its leverage ratio. With respect to the indenture governing the Senior Notes, the permitted Restricted Payment is generally $60 million plus a variable amount. The variable amount is a function of the Company’s EBITDA and the Company’s leverage ratio. Effectively all of Radio’s assets are subject to these distribution limitations to the Parent Company. The following tables set forth the condensed financial data (other than the statement s of shareholders’ equity and statements of compreh ensive income as th ese statement s are not condensed) of the Parent Company: the balance sheets as of December 31, 2015 and 2014; the statements of operations for the year s ended December 31, 2015, 2014 and 2013; the statements of shareholders’ equity for the year s ended December 31, 2015, 2014 and 2013; and the statements of cash flows for the year s ended December 31, 2015, 2014 and 2013.
| ENTERCOM COMMUNICATIONS CORP.
| CONDENSED PARENT COMPANY BALANCE SHEETS
| (amounts in thousands)
|  |  | 2015 |  | 2014
| ASSETS |  |  |  |  |  |
| Current Assets |  | $ | 7,289 |  | $ | 6,446
| Property And Equipment - Net |  |  | 472 |  |  | 495
| Deferred Charges And |  |  |  |  |  |
| Other Assets - Net |  |  | 3,807 |  |  | 2,233
| Investment In Subsidiaries / Intercompany |  |  | 424,493 |  |  | 360,091
| TOTAL ASSETS |  | $ | 436,061 |  | $ | 369,265
| LIABILITIES AND |  |  |  |  |  |
| SHAREHOLDERS' EQUITY |  |  |  |  |  |
| Current Liabilities |  | $ | 19,631 |  | $ | 14,041
| Long Term Liabilities |  |  | 27,361 |  |  | 26,203
| Total Liabilities |  |  | 46,992 |  |  | 40,244
| Perpectual Cumulative Convertible Preferred Stock |  |  | 27,619 |  |  | -
| Shareholders' Equity: |  |  |  |  |  |
| Class A, B and C Common Stock |  |  | 397 |  |  | 391
| Additional Paid-In Capital |  |  | 611,754 |  |  | 608,515
| Accumulated Deficit |  |  | (250,701) |  |  | (279,885)
| Total shareholders' equity |  |  | 361,450 |  |  | 329,021
| TOTAL LIABILITIES AND |  |  |  |  |  |
| SHAREHOLDERS' EQUITY |  | $ | 436,061 |  | $ | 369,265
| See notes to condensed Parent Company financial statements.
ENTERCOM COMMUNICATIONS CORP.
CONDENSED PARENT COMPANY INCOME STATEMENTS
(amounts in thousands)
|  | YEARS ENDED DECEMBER 31,
|  | 2015 |  | 2014 |  | 2013
NET REVENUES |  | $ | 1,536 |  | $ | 1,309 |  | $ | 615
OPERATING (INCOME) EXPENSE: |  |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 1,123 |  |  | 1,217 |  |  | 1,122
Corporate general and administrative expenses |  |  | 26,395 |  |  | 26,463 |  |  | 24,229
Merger and acquisition costs and restructuring charges |  |  | 6,836 |  |  | 1,042 |  |  | -
Net (gain) loss on sale or disposal of assets |  |  | (601) |  |  | (601) |  |  | (1,954)
Total operating expense |  |  | 33,753 |  |  | 28,121 |  |  | 23,397
OPERATING INCOME (LOSS) |  |  | (32,217) |  |  | (26,812) |  |  | (22,782)
OTHER (INCOME) EXPENSE: |  |  |  |  |  |  |  |  |
Net interest expense, including amortization |  |  |  |  |  |  |  |  |
of deferred financing expense |  |  | - |  |  | 15 |  |  | 1
Other expense (income) |  |  | - |  |  | - |  |  | (165)
Income from equity investment in subsidiaries |  |  | (79,838) |  |  | (73,561) |  |  | (71,118)
TOTAL OTHER (INCOME) EXPENSE |  |  | (79,838) |  |  | (73,546) |  |  | (71,282)
INCOME (LOSS) BEFORE INCOME TAXES (BENEFIT) |  |  | 47,621 |  |  | 46,734 |  |  | 48,500
INCOME TAXES (BENEFIT) |  |  | 18,437 |  |  | 19,911 |  |  | 22,476
NET INCOME (LOSS) AVAILABLE TO THE COMPANY |  |  | 29,184 |  |  | 26,823 |  |  | 26,024
Preferred stock dividend |  |  | (752) |  |  | - |  |  | -
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |  | $ | 28,432 |  | $ | 26,823 |  | $ | 26,024
See notes to condensed Parent Company financial statements.
ENTERCOM COMMUNICATIONS CORP.
PARENT COMPANY STATEMENTS OF SHAREHOLDERS' EQUITY
YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
(amounts in thousands, except share data)
|  |  |  |  |  |  |  |  |  |  |  |  | Retained |  |  |
| Common Stock |  | Additional |  | Earnings |  |  |
| Class A |  | Class B |  | Paid-in |  | (Accumulated |  |  |
| Shares |  | Amount |  | Shares |  | Amount |  | Capital |  | Deficit) |  | Total
Balance, December 31, 2012 | 31,226,047 |  | $ | 312 |  | 7,197,532 |  | $ | 72 |  | $ | 601,847 |  | $ | (332,737) |  | $ | 269,494
Net income (loss) available to the Company | - |  |  | - |  | - |  |  | - |  |  | - |  |  | 26,024 |  |  | 26,024
Compensation expense related to granting |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
of stock awards | 96,560 |  |  | 1 |  | - |  |  | - |  |  | 4,269 |  |  | - |  |  | 4,270
Exercise of stock options | 171,625 |  |  | 2 |  | - |  |  | - |  |  | 243 |  |  | - |  |  | 245
Purchase of vested employee restricted |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
stock units | (186,038) |  |  | (2) |  | - |  |  | - |  |  | (1,638) |  |  | - |  |  | (1,640)
Balance, December 31, 2013 | 31,308,194 |  |  | 313 |  | 7,197,532 |  |  | 72 |  |  | 604,721 |  |  | (306,713) |  |  | 298,393
Net income (loss) available to the Company | - |  |  | - |  | - |  |  | - |  |  | - |  |  | 26,823 |  |  | 26,823
Compensation expense related to granting |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
of stock awards | 638,102 |  |  | 7 |  | - |  |  | - |  |  | 5,225 |  |  | - |  |  | 5,232
Exercise of stock options | 57,500 |  |  | - |  | - |  |  | - |  |  | 82 |  |  | - |  |  | 82
Purchase of vested employee restricted |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
stock units | (141,502) |  |  | (1) |  | - |  |  | - |  |  | (1,513) |  |  | - |  |  | (1,514)
Forfeitures of dividend equivalents | - |  |  | - |  | - |  |  | - |  |  | - |  |  | 5 |  |  | 5
Balance, December 31, 2014 | 31,862,294 |  |  | 319 |  | 7,197,532 |  |  | 72 |  |  | 608,515 |  |  | (279,885) |  |  | 329,021
Net income (loss) available to the Company | - |  |  | - |  | - |  |  | - |  |  | - |  |  | 29,184 |  |  | 29,184
Compensation expense related to granting |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
of stock awards | 738,195 |  |  | 7 |  | - |  |  | - |  |  | 5,517 |  |  | - |  |  | 5,524
Exercise of stock options | 11,750 |  |  | - |  | - |  |  | - |  |  | 35 |  |  | - |  |  | 35
Purchase of vested employee restricted |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
stock units | (131,688) |  |  | (1) |  | - |  |  | - |  |  | (1,561) |  |  | - |  |  | (1,562)
Preferred stock dividend | - |  |  | - |  | - |  |  | - |  |  | (752) |  |  | - |  |  | (752)
Balance, December 31, 2015 | 32,480,551 |  | $ | 325 |  | 7,197,532 |  | $ | 72 |  | $ | 611,754 |  | $ | (250,701) |  | $ | 361,450
See notes to Parent Company financial statements.
ENTERCOM COMMUNICATIONS CORP.
CONDENSED PARENT COMPANY STATEMENTS OF CASH FLOWS
(amounts in thousands)
|  | YEARS ENDED DECEMBER 31,
|  | 2015 |  | 2014 |  | 2013
OPERATING ACTIVITIES: |  |  |  |  |  |  |  |  |
Net cash provided by (used in) operating activities |  | $ | (25,355) |  | $ | (21,652) |  | $ | (18,167)
INVESTING ACTIVITIES: |  |  |  |  |  |  |  |  |
Additions to property and equipment |  |  | (304) |  |  | (213) |  |  | (146)
Deferred charges and other assets |  |  | (1,142) |  |  | (481) |  |  | (468)
Proceeds (distributions) from investments in subsidiaries |  |  | 29,030 |  |  | 23,610 |  |  | 20,208
Net cash provided by (used in) investing activities |  |  | 27,584 |  |  | 22,916 |  |  | 19,594
FINANCING ACTIVITIES: |  |  |  |  |  |  |  |  |
Payment of fees associated with the issuance of preferred stock |  |  | (220) |  |  | - |  |  | -
Proceeds from the exercise of stock options |  |  | 35 |  |  | 82 |  |  | 245
Purchase of vested employee restricted stock units |  |  | (1,562) |  |  | (1,514) |  |  | (1,640)
Payment of dividend equivalents on vested restricted stock units |  |  | (7) |  |  | - |  |  | -
Payment of dividends |  |  | (413) |  |  | - |  |  | -
Net cash provided by (used in) financing activities |  |  | (2,167) |  |  | (1,432) |  |  | (1,395)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |  |  | 62 |  |  | (168) |  |  | 32
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |  |  | 133 |  |  | 301 |  |  | 269
CASH AND CASH EQUIVALENTS, END OF YEAR |  | $ | 195 |  | $ | 133 |  | $ | 301
See notes to condensed Parent Company financial statements.
Accounting Policies T he Parent Company follows the accounting policies as described in Note 2 except that the Parent Company accounts for its investment in its subsidiaries using the equity method. Debt – For a discussion of debt obligations of the Company, refer to Note 8. Other - For further information, reference should be made to the notes to the consolidated financial statements of the Company.

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