PROSPECTUS SUPPLEMENT SUMMARY
This summary does not contain all the information important to you in deciding whether to invest in our Class A common stock. You
should read this entire prospectus supplement, the accompanying prospectus and the documents incorporated and deemed to be incorporated by reference herein and therein, including the financial statements and related notes, before making an
investment decision.
Our Company
We are a multi-platform media company whose primary business is operating radio stations throughout the United States. We offer local and
national advertisers integrated marketing solutions across audio, digital and event platforms. We own and operate radio stations in the following radio markets: Atlanta, GA, Augusta, GA, Boston, MA, Charlotte, NC, Detroit, MI, Fayetteville, NC, Fort
Myers-Naples, FL, Las Vegas, NV, Middlesex, NJ, Monmouth, NJ, Morristown, NJ, Philadelphia, PA, Tampa-Saint Petersburg, FL, West Palm Beach-Boca Raton, FL, and Wilmington, DE. We refer to each group of radio stations in each radio market as a market
cluster.
We seek to secure and maintain a leadership position in the markets we serve by developing high quality local content, through
our audio, digital and esports platforms, including events and experiences in the communities we serve and, in turn, offer advertisers access to a highly effective marketing platform to reach large and targeted local audiences. We operate our radio
stations in clusters to capture a variety of demographic listener groups, which we believe enhances our radio stations appeal to a wide range of advertisers. Current FCC rules and regulations do not permit us to add more AM or FM radio
stations to our Augusta, GA market cluster, or more FM radio stations to our Boston, MA, Charlotte, NC, Fayetteville, NC, Fort Myers-Naples, FL, Philadelphia, PA, and Tampa-Saint Petersburg, FL market clusters.
The primary source of revenue for our radio stations is the sale of advertising time to local, regional and national advertisers and national
network advertisers who purchase commercials in varying lengths. A growing source of revenue is from station-related digital product suites, which allow for enhanced audience interaction and participation, and integrated digital advertising
solutions. A stations local sales staff generates the majority of its local and regional advertising sales through direct solicitations of local advertising agencies and businesses. We retain a national representation firm to sell to
advertisers outside of our local markets.
In 2019, we completed the acquisition of the Houston Outlaws, an esports team that competes in
the Overwatch League. The acquisition partners us with Blizzard Entertainment and its parent company Activision Blizzard, a leading global developer and publisher of interactive entertainment content and services.
Recent Developments
COVID-19
In March 2020, coronavirus disease 2019
(COVID-19) was recognized as a pandemic by the World Health Organization. The COVID-19 pandemic has resulted in a widespread health crisis that has adversely
affected businesses, economies, and financial markets worldwide, and has caused significant volatility in U.S. and international debt and equity markets. We have been impacted by deteriorating general economic conditions, which have caused a
downturn in the advertising industry. The decreased demand for advertising has negatively impacted our net revenue, and many advertisers have reduced or ceased advertising spend due to the COVID-19 pandemic
and its related economic impact. Specifically, we observed a rapid increase in cancellations and a reduction of new sales beginning midway through the month of March 2020. The cancellations were broad-based but more severe in industries that were
severely impacted by the COVID-19 pandemic. While this disruption is currently expected to be temporary, there is considerable uncertainty around the duration. We are actively monitoring developments related
to the COVID-19 pandemic. However, due to continuing uncertainty regarding COVID-19, it is impossible to predict the total impact that it will have on the Company. If
public and private entities continue to implement restrictive measures, the material adverse effect on our results of operations, financial condition and cash flows could persist.
In response to the COVID-19 pandemic, we made safety a priority, implementing a work-at-home initiative for many of our employees, with only certain essential employees remaining in the stations to continue live programming. We also encouraged our
listeners to practice social distancing and hand washing by displaying customized messages on car dashboard displays through the Quu platform. We delivered vital and breaking news on-air, opened our phone
lines to listeners and hosted live virtual concerts on certain stations with participating artists.