8-K 1 j8597601e8-k.txt CITADEL COMMUNICATIONS 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) January 15, 2001 Citadel Communications Corporation ---------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) Nevada ---------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 000-24515 86-0748219 ------------------------ --------------------------- (Commission File Number) (IRS Employer Identification No.) City Center West, Suite 400 7201 West Lake Mead Boulevard Las Vegas, Nevada 89128 ---------------------------------------- ---------------------- (Address of Principal Executive Offices) (Zip Code) (702) 804-5200 -------------------------------------------------- (Registrant's Telephone Number, Including Area Code) 2 This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based largely on current expectations and projections about future events affecting Citadel Communications Corporation's business. The word "will" and similar words are intended to identify forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements. The forward-looking statements in this report are subject to risks, uncertainties and assumptions including, among other things: - the satisfaction of various conditions to closing of the merger transaction described in this report, and - the impact of current or pending legislation and regulation. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this report might not transpire. Citadel Communications undertakes no obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise. ITEM 5. OTHER EVENTS On January 15, 2001, Citadel Communications Corporation entered into an Agreement and Plan of Merger, with FLCC Holdings, Inc., a Delaware corporation and an affiliate of Forstmann Little & Co., under which FLCC Acquisition Corp., a Nevada corporation and a wholly owned subsidiary of FLCC Holdings, Inc., will merge with and into Citadel Communications. Pursuant to the merger, each issued and outstanding share of common stock of Citadel Communications will be converted into the right to receive $26.00 in cash. The completion of this transaction is subject to various conditions, including approval of the Agreement and Plan of Merger and the merger by the stockholders of Citadel Communications, the Federal Communications Commission's consent to transfer of control of the station licenses and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Acts of 1976, as amended. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (a) Financial Statements. Not applicable. (b) Pro Forma Financial Information. Not applicable. (c) Exhibits. The following exhibit is filed as part of this report: 99.1 Press Release dated January 16, 2001. 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CITADEL COMMUNICATIONS CORPORATION Date: January 16, 2001 By: /s/ Lawrence R. Wilson ---------------------- ---------------------------------- Lawrence R. Wilson Chairman, Chief Executive Officer and President 4 EXHIBIT INDEX 99.1 Press release dated January 16, 2001.

1999 ----------- ASSETS Current assets: Cash $ 802,096 Accounts and notes receivable: Trade, less allowance for doubtful accounts Of $215,585 and $243,712 in 1999 7,958,692 Stockholders 124,864 Related party 118,867 Other 127,745 Interest receivable: Stockholders 23,257 Related party 44,923 Prepaid expenses 1,025,408 Deferred income tax 46,807 ----------- Total current assets 10,272,659 ----------- Cash value of life insurance, net policy loans of $63,621 in 1999 and 1998 613,344 Note receivable: Stockholder 20,638,245 Related party 4,342,380 Deferred income tax 698,415 Investments 534,310 Other assets 60,972 ----------- 26,887,666 ----------- Property and equipment 26,812,121 Less accumulated depreciation and amortization 13,482,603 ----------- 13,329,518 ----------- Intangible assets: Federal Communications Commission licenses 21,345,818 Other 374,603 ----------- 21,720,421 ----------- Total assets $72,210,264 ===========

1999 ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 3,583,671 Current maturities of capitalized lease Obligations 287,064 Notes payable - stockholders 804,548 Interest payable: Stockholders 210,580 Other 495,924 Accounts payable 604,846 Accrued expenses 992,388 Income taxes payable 28,333 Deferred income taxes 2,697 ----------- Total current liabilities 7,067,296 ----------- Long-term debt, less current maturities 27,264,335 Capitalized lease obligations, less current maturities 4,191,846 Notes payable - stockholders 15,382,200 Deferred income taxes 1,449,306 Deferred compensation 1,621,042 ----------- 49,908,729 ----------- Stockholders' equity: Common stock 3,001,592 Additional paid-in capital 183,102 Retained earnings 12,049,545 ----------- Total stockholders' equity 15,234,239 ----------- Total liabilities and stockholders' equity $72,210,264 ===========

1999 ----------- Revenue: Sales $44,377,263 Other operating revenue 1,404,956 ----------- 45,782,219 Direct expenses 4,927,131 ----------- Gross profit 40,855,088 ----------- Operating expenses: Technical expenses 1,003,689 Program and news expense 13,014,048 Sales expense 9,425,385 Rental and leasing expenses 491,041 ----------- 23,934,163 General and administrative expenses 12,548,841 ----------- 36,483,004 ----------- Income from operations 4,372,084 ----------- Other income (expense): Interest income 1,600,007 Interest expense (3,354,015 Rent income 250,420 Gain(loss)on sale of assets (140,617 Loss from partnership (246,322 Income (loss) in joint venture (1,231,808 Other income 30,981 ----------- (3,091,354 ----------- Income before income taxes 1,280,730 Income tax expense 448,326 ----------- Net income $ 832,404 ===========

COMMON STOCK ---------------------- ADDITIONAL STATED PAID-IN RETAINED SHARES VALUE CAPITAL EARNINGS TOTAL ------ ---------- -------- ----------- ----------- Balance, December 31, 1998 18,466 3,001,592 183,102 14,658,242 17,842,936 ------ ---------- -------- ----------- ----------- Net income, 1999 832,404 832,404 ------ ---------- -------- ----------- ----------- Distribution to shareholders (3,441,101) (3,441,101) ------ ---------- -------- ----------- ----------- Balance, December 31, 1999 18,466 $3,001,592 $183,102 $12,049,545 $15,234,239 ====== ========== ======== =========== ===========

1999 ---------- CASH FLOWS FROM OPERATING ACTIVITIES NET INCOME $ 832,404 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 3,606,112 Net loss from investments 249,131 (Gain)(Loss) on disposal of fixed assets 141,585 Deferred income taxes (154,178) Deferred compensation 55,744 Changes in assets and liabilities (Increase) decrease in assets: Trade receivables 1,111,168 Other receivables (1,196) Interest receivable (47,903) Prepaid expenses 128,506 Other assets 94,787 Increase (decrease) in liabilities: Accounts payable 289,192 Interest payable 532,800 Accrued expenses (113,804) Income tax payable (47,054) ---------- Net cash provided (used) by operating Activities 6,677,294 ----------

1999 ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Increase in cash value of life insurance (99,494) Capital expenditures (1,404,144) Proceeds from sale of assets 62,325 Contributions to investments -- Issuance of stockholder notes receivable (2,492,039) Stockholder notes repaid 1,554,792 Issuance of related party notes receivable (252,441) Related party notes repaid 450,704 Principal repayments of capitalized lease obligations (266,385) Distributions from investments -- ----------- Net cash provided (used) by investing activities (2,446,682) ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Principal repayments on long-term debt (3,578,446) Proceeds from issuance of long term debt 3,500,000 Proceeds from issuance of stockholder notes payable 3,519,036 Repayment of stockholder notes payable (1,106,178) Distributions paid to shareholders (3,441,101) ----------- Net cash provided (used) by financing activities (4,606,689) ----------- Net increase (decrease) in cash (376,077) Cash at beginning of year 1,178,173 ----------- Cash at end of year $ 802,096 =========== Supplemental disclosure of cash flow information: Cash payments for: Interest $ 2,838,554 =========== Income Taxes $ 586,646 ===========

1999 ---- DBC of North Carolina, Inc. 100% DBC of Alabama, Inc. 100%

1999 ---------- Stockholders: Notes receivable from stockholders consisted of the following at December 31, 1999: Unsecured promissory note receivable bearing a variable interest rate equivalent to a local lending institution. Annual repayment terms correspond to like amounts required by revolving credit commitment. $3,095,550 Unsecured promissory note receivable bearing a variable interest rate equivalent to a local lending institution. Annual repayment terms correspond to like amounts required by revolving credit commitment. 3,095,550 Unsecured promissory note receivable bearing a variable interest rate equivalent to a local lending institution. Annual repayment terms correspond to like amounts required by revolving credit commitment. 3,095,550 Unsecured promissory note receivable bearing a variable interest rate equivalent to a local lending institution. Annual repayment terms correspond to like amounts required by revolving credit commitment. 3,095,550 7% promissory note requiring forty quarterly payments commencing 3/1/97. All outstanding principal and accrued interest shall be due and payable on 1/1/07. Secured by stock pledge agreement. 1,285,714

1999 --------- 7% promissory note requiring forty quarterly payments commencing 3/1/97. All outstanding principal and accrued interest shall be due and payable 1/1/07. Secured by stock pledge agreement. 364,981 7% promissory note requiring forty quarterly payments commencing 3/1/97. All outstanding principal and accrued interest shall be due and payable on 1/1/07. Secured by stock pledge agreement. 1,342,761 7% promissory note requiring forty quarterly payments commencing 3/1/97. All outstanding principal and accrued interest shall be due and payable on 1/1/07. Secured by stock pledge agreement. 1,337,241 Unsecured variable rate demand note receivable. Interest rate based on prime plus .25%. Interest only due annually. Principal is due on demand. 237,643 Unsecured variable rate demand note receivable. Interest rate based on prime plus .25%. Interest only due annually. Principal is due on demand. 351,120 Unsecured variable rate demand note receivable. Interest rate based on prime plus .25%. Interest only due annually. Principal is due on demand. 321,733 Unsecured variable rate demand note receivable. Interest rate based on prime plus .25%. Interest only due annually. Principal is due on demand. 262,960 Unsecured variable rate demand note Receivable. Interest due quarterly. 108,330 Unsecured variable rate demand note Receivable. Interest due quarterly. 146,865 Unsecured variable rate demand note Receivable. Interest due quarterly. 268,613

1999 ----------- Unsecured variable rate demand note receivable. Interest due quarterly. 764,922 Unsecured variable rate demand note receivable. Interest due quarterly. 292,853 Unsecured variable rate demand note receivable. Interest due quarterly. 292,853 Unsecured variable rate demand note receivable. Interest due quarterly. 292,853 Unsecured variable rate demand note receivable. Interest due quarterly. 292,853 Variable rate promissory note with interest due annually. Principal is due on March 31, 2001. Secured by deed of trust. 291,750 Loans to stockholders 124,864 ----------- $20,763,109 =========== Current $ 124,864 Long-term 20,638,245 ----------- $20,763,109 =========== Other related parties: Notes receivable from other related parties consisted of the following at December 31, 1999: Unsecured variable rate demand note receivable. Interest due quarterly. $ 164,991 Unsecured variable rate demand note requiring forty quarterly payments Interest due quarterly. 2,536,409

1999 ---------- Variable rate promissory note requiring twenty-seven quarterly payments commencing 12/1/97. Secured by aircraft. 623,701 Unsecured variable rate demand note receivable. Interest rate based on prime plus .25%. Interest due quarterly. Principal is due on demand. 1,017,279 Loans to related parties. Interest rate based on prime rate. 118,867 ---------- $4,461,247 ========== Current $ 118,867 Long-term 4,342,380 ---------- $4,461,247 ==========

1999 -------- DBC of North Carolina/Ellison Company 238,433 DBC of Nashville/Capitol Sports 295,877 -------- $534,310 ========

DBC OF NORTH CAROLINA/ELLISON COMPANY ------------------------------------- Contributions $ 484,755 Pro rata share of net loss (246,322) --------- Carrying value of investment $ 238,433 ========= Assets $ 489,861 ========= Liabilities $ 12,994 Partners' capital 476,867 --------- $ 489,861 ========= Net loss $(492,644) =========

DBC OF NASHVILLE/CAPITOL SPORTS 1999 ------------------------------- ----------- Contributions $ 1,527,685 Pro rata share of net income (loss) (1,231,808) ----------- Carrying value of investment $ 295,877 =========== Assets $ 1,584,407 =========== Liabilities $ 992,654 Partners' capital 591,753 ----------- $ 1,584,407 =========== Net income (loss) $(1,231,808) ===========

DECEMBER 31, ESTIMATED 1999 USEFUL LIVES ----------- -------------- Land $ 2,580,872 Buildings 4,654,094 5 - 31.5 years Equipment and fixtures 13,496,622 3 - 15 years Transportation equipment 533,315 4 - 10 years Capital lease - buildings 5,547,218 15 years ----------- $26,812,121 ===========

1999 ----------- Revolving credit commitment with local lending institution with predetermined maximum annual outstanding balances. The loan bears a variable interest rate of Libor plus 1.0%. Commitment is required to be paid in annual installments through 1/1/2004. The loan is secured by the Company's closely held stock and all company assets. $30,000,000 Installment note requiring a quarterly payment of $34,377 beginning March 1, 1998. The note bears a 6.5% interest rate. The loan is secured by a letter of credit. 848,006 ----------- 30,848,006 Less current portion 3,583,671 ----------- $27,264,335 ===========

1999 ----------- Promissory note payable bearing a variable interest rate equivalent to a local lending institution. $ 3,095,550 Promissory note payable bearing a variable interest rate equivalent to a local lending institution. 3,095,550 Promissory note payable bearing a variable interest rate equivalent to a local lending institution. 3,095,550 Promissory note payable bearing a variable interest rate equivalent to a local lending institution. 3,095,550 Promissory note payable bearing a variable interest rate equivalent to a local lending institution. 750,000 Promissory note payable bearing a variable interest rate equivalent to a local lending institution. 750,000 Promissory note payable bearing a variable interest rate equivalent to a local lending institution. 750,000 Promissory note payable bearing a variable interest rate equivalent to a local lending institution. 750,000 Promissory notes payable bearing a variable interest rate equivalent to a local lending institution. 804,548 ----------- 16,186,748 Less current portion 804,548 ----------- $15,382,200 ===========

DECEMBER 31 1999 ----------- Capitalized lease obligation at 7.5% interest beginning September 1, 1995 through August 31, 2010. The obligation requires monthly payments of $24,167. $ 3,093,376 Capitalized lease obligation at 7.5% interest beginning June 28, 1995 through June 30, 2010. The obligation requires monthly payments of $18,750. 2,343,750 Capitalized lease obligation at 7.5% interest beginning December 31, 1995 through December 31, 2010. The obligation requires monthly payments of $8,187. 1,072,497 ----------- 6,509,623 Less amount representing interest (2,030,713) ----------- Present value of minimum lease payments 4,478,910 Less current portion (287,064) ----------- Total $ 4,191,846 ===========

Dick Dick Broadcasting Broadcasting Co., Inc. of Co., Inc. of Dick Radio Tennessee Nashville Alabama, Inc. Combined ------------ ------------ ------------- ---------- Total value $2,881,592 $100,000 $20,000 $3,001,592 ========== ======== ======= ========== Authorized shares 80,000 2,000 2,000 Shares issued and outstanding 15,466 1,000 2,000

DECEMBER 31 1999 ----------- Current tax expense: Federal $ 489,867 State 112,637 --------- Total current 602,504 --------- Deferred tax expense (benefit): Federal 220,060 State (326,692) --------- Total deferred (106,632) --------- Net benefits of state operating carry forward (expires 2003 through 2012) (47,546) --------- Total provision for income taxes $ 448,326 =========

1999 ---------- Deferred tax assets: Allowance for doubtful accounts $ 30,762 Accrued shareholder bonuses 10,163 Deferred compensation 97,263 Net operating loss carryforwards - State 482,581 Amortization of favorable lease 111,818 Accrued related party interest 12,635 ---------- Total deferred tax assets 745,222 Deferred tax liabilities: Excess (deficiency) of tax over book depreciation 6,278 Accrued related party interest 8,592 Amortization of FCC licenses 1,494,378 Allowance for doubtful accounts -- Deferred compensation -- ---------- Total deferred tax liabilities 1,509,248 ---------- Net deferred tax asset (liability) $ (764,026) ==========

1999 ----------- BALANCE SHEET ------------- Notes receivable: Stockholders $20,763,109 Related parties 4,461,247 Interest receivable: Stockholder 23,257 Related parties 44,923 Notes payable: Stockholders 16,186,748 Interest payable: Stockholder 210,580 INCOME STATEMENT ---------------- Interest income: Stockholders 1,150,167 Related parties 277,893 Interest expense: Stockholders 855,931 Reduction of lease obligations and related interest: Related parties $ 613,248

Carrying Bank Amount Balance -------- ---------- Amount insured by FDIC $429,400 $ 442,442 Uninsured 370,796 1,941,216 Petty cash 1,900 -- -------- ---------- Total $802,096 $2,383,658 ======== ==========

DECEMBER 31, 1999 --------------------------------------------------------------------------- EXCLUDED ASSETS AND LIABILITIES -------------------------------- COMBINED PRO FORMA BALANCE NORTH ASSETS SHEET CAROLINA OTHER TO BE SOLD ----------- ----------- ----------- ----------- Assets: Current assets $10,272,659 $ 1,604,418 $ 7,712,031 $ 956,210 Other assets 26,887,666 238,617 26,353,172 295,877 Property and equipment 13,329,518 1,381,700 -- 11,947,818 Intangible assets 21,720,421 1,786,390 -- 19,934,031 Other assets eliminated in Consolidation -- 8,089,061 (8,089,061) -- ----------- ----------- ----------- ----------- Total assets $72,210,264 $13,100,186 $25,976,142 $33,133,936 =========== =========== =========== =========== Liabilities and stockholders' equity: Current liabilities $ 7,067,296 $ 267,538 $ 6,799,758 $ -- Long-term liabilities 49,908,729 685,835 49,222,894 -- Other liabilities eliminated in Consolidation -- 5,817,880 (5,817,880) -- Stockholders' equity 15,234,239 6,328,933 8,905,306 ----------- ----------- ----------- ----------- Total Liabilities and stockholders' equity $72,210,264 $13,100,186 $59,110,078 $ -- =========== =========== =========== ===========

PRO FORMA SCHEDULE OF INCOME FROM OPERATIONS YEAR ENDED DECEMBER 31, 1999 ----------------------------------------------------------- ------------------------------------------------------ COMBINED PRO FORMA INCOME FROM EXCLUDED INCOME FROM OPERATIONS OPERATIONS OPERATIONS ----------- ---------- ----------- Revenue $45,782,219 $9,623,423 $36,158,796 Direct expenses 4,927,131 932,293 3,994,838 ----------- ---------- ----------- Gross profit 40,855,088 8,691,130 32,163,958 ----------- ---------- ----------- Operating expenses 23,934,163 5,612,375 18,321,788 General and administrative expenses 12,548,841 2,466,003 10,082,838 ----------- ---------- ----------- 36,483,004 8,078,378 28,404,626 ----------- ---------- ----------- Income from operations $ 4,372,084 $ 612,752 $ 3,759,332 =========== ========== ===========

2000 1999 ----------- ----------- ASSETS Current assets: Cash $ 1,110,017 $ 1,967,455 Accounts and notes receivable: Trade, less allowance for doubtful accounts of $196,610 8,242,782 7,564,928 Stockholders 124,864 108,916 Related party 118,867 125,989 Other 1,849 31,848 Interest receivable: Stockholders 514,927 311,521 Related party 59,230 33,637 Other 12,894 0 Prepaid expenses 935,525 915,298 Deferred income tax 83,000 43,357 ----------- ----------- Total current assets 11,203,955 11,102,949 ----------- ----------- Cash value of life insurance, net policy loans Of $63,621 613,344 563,599 Note receivable: Stockholder 20,663,245 19,339,770 Related party 4,230,002 4,464,389 Deferred income tax 550,000 630,632 Investments 429,540 555,309 Other assets 109,692 122,846 ----------- ----------- 26,595,823 25,676,545 Property and equipment 26,916,521 26,607,199 Less accumulated depreciation and amortization 14,340,070 12,519,301 ----------- ----------- 12,576,451 14,087,898 ----------- ----------- Intangible assets: Federal Communications Commission licenses 20,592,489 22,099,147 Other 345,505 434,249 ----------- ----------- 20,937,994 22,533,396 ----------- ----------- Total assets $71,314,223 $73,400,788 =========== ===========

2000 1999 ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 3,586,412 $ 3,581,016 Current maturities of capitalized lease obligations 297,999 276,531 Notes payable - stockholders 595,756 471,004 Interest payable - stockholders 600,654 389,151 Accounts payable 510,880 617,827 Accrued expenses 883,388 1,023,182 Income taxes payable 216,305 31,772 Deferred income taxes 28,000 4,326 ----------- ----------- Total current liabilities 6,719,394 6,394,809 ----------- ----------- Long-term debt, less current maturities 27,220,433 30,306,845 Capitalized lease obligations, less current maturities 4,040,062 4,338,061 Notes payable - stockholders 15,382,200 13,196,355 Deferred income taxes 1,221,000 1,424,535 Deferred compensation 1,583,707 1,592,963 ----------- ----------- 49,447,402 50,858,759 ----------- ----------- Stockholders' equity: Common stock 3,184,694 3,184,694 Retained earnings 11,962,733 12,962,526 ----------- ----------- Total stockholders' equity 15,147,427 16,147,220 ----------- ----------- Total liabilities and stockholders' equity $71,314,223 $73,400,788 =========== ===========

2000 1999 ----------- ----------- Revenue: Sales $22,013,949 $21,490,598 Other operating revenue 208,241 228,433 ----------- ----------- 22,222,190 21,719,031 Direct expenses 2,443,023 2,328,296 ----------- ----------- Gross profit 19,779,167 19,390,735 ----------- ----------- Operating expenses: Technical expenses 494,920 490,272 Program and news expense 6,783,951 6,526,538 Sales expense 5,065,806 4,794,033 Rental and leasing expenses 131,518 363,841 ----------- ----------- 12,476,195 12,174,684 General and administrative expenses 5,512,119 6,926,682 ----------- ----------- 17,988,314 19,101,366 ----------- ----------- Income from operations 1,790,853 289,369 ----------- ----------- Other income (expense): Interest income 933,127 794,810 Interest expense (2,006,688) (1,682,982) Rent income 117,876 131,935 Gain(loss)on sale of assets 146 (188,804) Loss from partnership (74,617) (13,671) Loss in joint venture (57,153) (214,461) Other income 247 18,422 ----------- ----------- (1,087,062) (1,154,751) ----------- ----------- Income (loss) before income taxes 703,791 (865,382) Income tax expense (333,499) 34,208 ----------- ----------- Net income (loss) $ 370,292 $ (831,174) =========== ===========

COMMON STOCK ------------------------ STATED RETAINED SHARES VALUE EARNINGS TOTAL -------- ---------- ------------ ----------- Balance, December 31, 1999, as previously reported 15,466 $2,881,592 $ 13,301,366 $16,182,958 Adjustments, retroactive to December 31, 1999, for merger with Dick Broadcasting Company, Inc. of Nashville and Dick Radio Alabama, Inc. 5,180 303,102 (1,251,821) (948,719) -------- ---------- ------------ ----------- Balance, December 31, 1999, as restated 20,646 3,184,694 12,049,545 15,234,239 Net income 370,292 370,292 Distribution to shareholders (457,104) (457,104) -------- ---------- ------------ ----------- Balance, June 30, 2000 20,646 $3,184,694 $ 11,962,733 $15,147,427 ======== ========== ============ =========== Balance, December 31, 1998, or previously reported 15,466 $2,881,592 $ 15,910,063 $18,791,655 Adjustments, retroactive to December 31, 1998, for merger with Dick Broadcasting Company, Inc. of Nashville and Dick Radio Alabama, Inc. 5,180 303,102 (1,251,821) (948,719) -------- ---------- ------------ ----------- Balance, December 31, 1998, as restated 20,646 3,184,694 (14,658,242) 17,842,936 Net Loss (831,174) (831,174) Distribution to shareholders (864,542) (864,542) -------- ---------- ------------ ----------- Balance, June 30, 1999 20,646 $3,184,694 $ 12,962,526 $16,147,220 ======== ========== ============ ===========

2000 1999 ---------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $ 370,292 $ (831,174) Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 1,665,114 1,821,650 Net loss from investments 104,770 228,132 (Gain) on disposal of fixed assets (146) 188,804 Deferred income taxes (148,026) (163,332) Deferred compensation (37,335) 27,665 Changes in assets and liabilities (Increase) decrease in assets: Trade receivables (284,088) 1,504,932 Other receivables 125,896 94,701 Interest receivable (518,871) (324,881) Prepaid expenses 89,883 238,616 Other assets (48,722) 32,913 Increase (decrease) in liabilities: Accounts payable (93,966) 302,173 Interest payable (105,850) 215,447 Accrued expenses (109,000) (83,011) Income tax payable 187,972 (43,615) ---------- ----------- Net cash provided by operating activities 1,197,923 3,209,020 ========== =========== CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (293,361) (1,238,224) Proceeds from sale of assets 3,887 62,293 Increase in cash surrender value of life -- insurance 0 (49,749) ---------- ----------- Net cash used by investing activities (289,474) (1,225,680) ========== =========== CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of stockholder notes receivable (25,000) 0 Related party notes repaid 112,378 0 Proceeds from restated party notes receivable 0 69,133 Proceeds from stockholders notes receivable 0 377,176 Principal repayments of capitalized lease obligations (140,849) (130,703) Principal repayments on long-term debt (41,161) (538,591) Repayment of stockholder notes payable (48,792) (106,531) Distributions paid to shareholders (457,104) (864,542) ---------- ----------- Net cash used by financing activities (600,528) (1,194,058) ========== ===========

2000 1999 ---------- ---------- Net increase in cash 307,921 789,282 Cash at beginning of year 802,096 1,178,173 ---------- ---------- Cash at end of year $1,110,017 $1,967,455 ========== ========== Supplemental disclosure of cash flow information: Cash payments for: Interest $2,099,645 $1,784,018 ========== ========== Income taxes $ 116,000 $ 176,259 ========== ==========

2000 1999 ----------- ----------- Unsecured promissory notes receivable (4) bearing a variable interest rate equivalent to a local lending institution. Annual repayment terms correspond to like amounts required by revolving credit commitment. $12,382,200 $13,196,355 7% promissory notes (4) requiring forty quarterly payments commencing 3/1/97. All outstanding principal and accrued interest shall be due and payable on 1/1/07. Secured by stock pledge agreement. 4,330,697 4,652,363

2000 1999 ----------- ----------- Unsecured variable rate demand notes receivable (4). Interest rate based on prime plus .25%. Interest only due annually. Principal is due on demand. 1,198,456 1,199,302 Unsecured variable rate demand notes receivable (8). Interest due quarterly. 2,460,142 0 Variable rate promissory note with interest due annually. Principal is due on March 31, 2001. Secured by deed of trust. 291,750 291,750 Loans to stockholders 124,864 108,916 ----------- ----------- $20,788,109 $19,448,686 =========== =========== Current $ 124,864 108,916 Long-term 20,663,245 19,339,770 ----------- ----------- $20,788,109 $19,448,686 =========== =========== Other related parties: ---------------------- Notes receivable from other related parties consisted of the following at June 30, 2000 and 1999: Unsecured variable rate demand note receivable. Interest due quarterly. $ 92,744 $ 12,173 Unsecured variable rate demand note requiring forty quarterly payments. Interest due quarterly. 2,536,509 2,744,348 Variable rate promissory note requiring twenty-seven quarterly payments commencing 12/1/97. Secured by aircraft. 583,462 663,939 Unsecured variable rate demand note receivable. Interest rate based on prime plus .25%. Interest due quarterly. Principal is due on demand. 1,017,287 1,043,929 Loans to related parties. Interest rate based on prime rate. 118,867 125,989 ----------- ----------- $ 4,348,869 $ 4,590,378 =========== =========== Current $ 118,867 $ 125,989 Long-term 4,230,002 4,464,389 ----------- ----------- $ 4,348,869 $ 4,590,378 =========== ===========

2000 1999 --------- --------- DBC of North Carolina/Ellison Company $ 190,816 $ 138,224 DBC of Nashville/Capitol Sports 238,724 444,084 --------- --------- $ 429,540 $ 582,308 ========= =========

DBC OF NORTH CAROLINA/ELLISON COMPANY 2000 1999 --------- --------- Contributions $ 265,433 430,756 Pro rata share of net loss (74,617) (13,671) --------- --------- Carrying value of investment $ 190,816 417,085 --------- --------- Assets $ 407,037 $ 670,300 --------- --------- Liabilities $ 25,403 31,640 Partners' capital 381,634 638,660 --------- --------- $ 407,037 $ 670,300 --------- --------- Net loss $(149,234) $ (27,343) ========= =========

DBC OF NASHVILLE/CAPITOL SPORTS 2000 1999 --------- --------- Contributions $ 295,877 $ 352,685 Pro rata share of net income (loss) (57,153) (214,461) --------- --------- Carrying value of investment $ 238,724 $ 138,224 --------- --------- Assets $ 629,097 $ 280,278 --------- --------- Liabilities $ 151,650 $ 3,830 Partners' capital 477,447 276,448 --------- --------- $ 629,097 $ 280,278 --------- --------- Net loss $(114,307) $(428,922) ========= =========

ESTIMATED 2000 1999 USEFUL LIVES ----------- ----------- -------------- Land $ 2,420,872 $ 2,580,872 Buildings 4,689,100 4,609,603 5 - 31.5 years Equipment and fixtures 13,661,749 13,336,191 3 - 15 years Transportation equipment 597,582 533,315 4 - 10 years Capital lease - buildings 5,547,218 5,547,218 15 years ----------- ----------- $26,916,521 $26,607,199 =========== ===========

2000 1999 ----------- ----------- Revolving credit commitment with local lending institution with predetermined maximum annual outstanding balances. The loan bears a variable interest rate of Libor plus 1.0% Commitment is required to e paid in annual installments through 1/1/2004. The loan is secured by the Company's closely held stock and all company assets. $30,000,000 $33,000,000 Installment note requiring a quarterly payment of $34,377 beginning March 1, 1998. the note bears a 6.5% interest rate. The loan is secured by a letter of credit. 806,845 887,861 ----------- ----------- 30,806,845 33,887,861 Less current portion 3,586,412 3,581,016 ----------- ----------- $27,220,433 $30,306,845 =========== ===========

June 30, -------- 2001 $ 3,586,412 2002 3,592,167 2003 3,598,306 2004 19,604,853 2005 111,836 Thereafter 313,271 ----------- $30,806,845 ===========

2000 1999 ----------- ----------- Promissory notes payable (4) bearing variable interests rate equivalent to a local lending institution. $12,382,200 $13,196,355 Promissory notes payable (5) bearing variable interests rate equivalent to a local lending institution. 3,595,756 471,004 ----------- ----------- 15,977,956 13,667,359 Less current portion 595,756 471,004 ----------- ----------- $15,382,200 $13,196,355 =========== ===========

2000 1999 ----------- ----------- Capitalized lease obligation at 7.5% interest beginning September 1, 1995 through August 31, 2010. The obligation requires monthly payments of $24,167. $ 2,948,374 $ 3,238,378 Capitalized lease obligation at 7.5% interest beginning June 28, 1995 through June 30, 2010. The obligation requires monthly payments of $18,750. 2,231,250 2,456,250 Capitalized lease obligation at 7.5% interest beginning December 31, 1995 through December 31, 2010. The obligation requires monthly payments of $8,187. 1,023,375 1,121,619 ----------- ----------- 6,202,999 6,816,247 Less amount representing interest (1,864,938) (2,201,655) ----------- ----------- Present value of minimum lease payments 4,338,061 4,614,592 Less current portion (276,531) (276,531) ----------- ----------- Total $ 4,040,062 $ 4,338,061 =========== ===========

June 30, -------- 2001 $ 297,999 2002 321,133 2003 346,063 2004 372,930 2005 401,881 Thereafter 2,598,055 ---------- $4,338,061 ==========

2000 1999 ---------- ---------- Current tax expense (benefit): Federal $ 339,158 $ 57,677 State 142,368 71,447 ---------- ---------- Total current 481,526 129,124 ---------- ---------- Deferred tax expense (benefit): Federal (186,748) (33,318) State 66,302 (35,140) ---------- ---------- Total deferred (120,446) (68,458) ---------- ---------- Net benefits of state operating carry forward (expires 2003 through 2012) (27,581) (94,874) ---------- ---------- Total provision for income taxes(benefit) $ 333,499 $ (34,208) ========== ==========

2000 1999 ---------- ---------- Deferred tax assets: Allowance for doubtful accounts $ 68,000 $ 32,279 Deferred compensation 95,000 105,741 Net operating loss carryforwards - State 455,000 524,891 Accrued related party interest 15,000 11,078 ---------- ---------- Total deferred tax assets 633,000 673,989 ---------- ---------- Deferred tax liabilities: Excess (deficiency) of tax over book Depreciation 18,000 6,112 Accrued related party interest 28,000 4,326 Amortization of FCC licenses and favorable leases 1,203,000 1,418,423 ---------- ---------- Total deferred tax liabilities 1,249,000 1,428,861 ---------- ---------- Net deferred tax asset (liability) $ (616,000) $ (754,872) ========== ==========

2000 1999 ----------- ----------- BALANCE SHEET ------------- Notes receivable: Stockholders $20,788,109 $19,448,686 Related parties 4,348,869 4,590,378 Interest receivable: Stockholder 514,927 311,521 Related parties 59,230 33,637 Notes payable: Stockholders 15,977,956 13,667,359 Interest payable: Stockholder 600,654 389,151 INCOME STATEMENT ---------------- Interest income: Stockholders 575,083 Related parties 23,967 Interest expense: Stockholders 427,965 BALANCE SHEET AND INCOME STATEMENT ---------------------------------- Reduction of capital lease obligations and related interest: 306,624 306,624 Related parties

PRO FORMA BALANCE SHEET ----------------------- JUNE 30, 2000 ------------------------------------------------------------------- EXCLUDED ASSETS AND LIABILITIES ----------------------------- PRO FORMA CONSOLIDATED NORTH ASSETS BALANCE SHEET CAROLINA OTHER TO BE SOLD ------------- ---------- ----------- ----------- ASSETS CURRENT ASSETS CASH $ 1,110,017 $ 270,905 $ 839,112 $ -- ACCOUNTS/NOTES RECEIVABLES: TRADE LESS ALLOWANCE 8,242,782 1,465,493 6,777,289 -- STOCKHOLDERS 124,864 124,864 -- -- RELATED PARTY 118,867 108,497 10,370 -- OTHER 1,849 1,849 -- -- INTEREST RECEIVABLE: STOCKHOLDERS 514,927 -- 514,927 -- RELATED PARTY 59,230 -- 59,230 -- OTHER 12,894 -- 12,894 -- PREPAID EXPENSES 935,525 62,178 -- 873,347 DEFERRED INCOME TAX 83,000 -- 83,000 -- ----------- ---------- ----------- ----------- TOTAL CURRENT ASSETS 11,203,955 2,033,786 8,296,822 873,347 CASH VALUE OF LIFE INSURANCE NET LOANS 613,344 -- 613,344 -- NOTE RECEIVABLE: -- STOCKHOLDER 20,663,245 -- 20,663,245 -- RELATED PARTY 4,230,002 -- 4,230,002 -- DEFERRED INCOME TAX 550,000 -- 550,000 -- INVESTMENTS 429,540 190,817 -- 238,723 OTHER ASSETS 109,692 184 109,508 -- PROPERTY AND EQUIPMENT LESS ACCUMULATED DEPRECIATION 12,576,451 1,340,045 -- 11,236,406 INTANGIBLE ASSETS 20,937,994 1,745,242 -- 19,192,752 OTHER ASSETS ELIMINATED IN CONSOLIDATION -- 3,385,966 (3,385,966) -- ----------- ---------- ----------- ----------- TOTAL ASSETS $71,314,223 $8,696,040 $31,076,955 $31,541,228 =========== ========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES CURRENT MATURITIES OF LONG-TERM DEBT $ 3,586,412 $ -- $ 3,586,412 $ -- CURRENT MATURITIES OF CAPITAL LEASE OBLIGATIONS 297,999 46,672 251,327 -- NOTES PAYABLE- STOCKHOLDERS 595,756 -- 595,756 -- INTEREST PAYABLE- STOCKHOLDERS 600,654 -- 600,654 -- ACCOUNTANTS PAYABLE 510,880 150,792 360,088 -- ACCRUED EXPENSES 883,388 113,593 769,795 -- INCOME TAXES PAYABLE 216,305 (27,725) 244,030 -- DEFERRED INCOME TAXES 28,000 -- 28,000 -- ----------- ---------- ----------- ----------- TOTAL CURRENT LIABILITIES 6,719,394 283,332 6,436,062 -- LONG-TERM DEBT, LESS CURRENT MATURITIES 27,220,433 -- 27,220,433 -- CAPITALIZED LEASE OBLIGATIONS, LESS CURRENT MATURITIES 4,040,062 662,063 3,377,999 -- NOTES PAYABLE - STOCKHOLDERS 15,382,200 -- 15,382,200 -- DEFERRED INCOME TAXES 1,221,000 -- 1,221,000 -- DEFERRED COMPENSATION 1,583,707 -- 1,583,707 -- OTHER LIABILITIES ELIMINATED IN CONSOLIDATION -- 1,049,677 (1,049,677) -- ----------- ---------- ----------- ----------- TOTAL LIABILITIES 56,166,796 1,995,072 54,171,724 -- STOCKHOLDERS' EQUITY 15,147,427 6,700,968 8,446,459 -- ----------- ---------- ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $71,314,223 $8,696,040 $62,618,183 $ -- =========== ========== =========== ===========

PRO FORMA BALANCE SHEET JUNE 30, 1999 -------------------------------------------------------------------- EXCLUDED ASSETS AND LIABILITIES ------------------------------ PRO FORMA CONSOLIDATED NORTH ASSETS BALANCE SHEET CAROLINA OTHER TO BE SOLD ------------- ----------- ----------- ----------- ASSETS CURRENT ASSETS CASH $ 1,967,455 $ 355,090 $ 1,612,365 $ -- ACCOUNTS/NOTES RECEIVABLES: TRADE LESS ALLOWANCE 7,564,928 1,385,712 6,179,216 -- STOCKHOLDERS 108,916 108,916 -- -- RELATED PARTY 125,989 115,619 10,370 -- OTHER 31,848 16,044 15,804 -- INTEREST RECEIVABLE: STOCKHOLDERS 311,521 -- 311,521 -- RELATED PARTY 33,637 -- 33,637 -- OTHER -- -- -- -- PREPAID EXPENSES 915,298 46,612 -- 868,686 DEFERRED INCOME TAX 43,357 -- 43,357 -- ----------- ----------- ----------- ----------- TOTAL CURRENT ASSETS 11,102,949 2,027,993 8,206,270 868,686 CASH VALUE OF LIFE INSURANCE NET LOANS 563,599 -- 563,599 -- NOTE RECEIVABLE: -- STOCKHOLDER 19,339,770 -- 19,339,770 -- RELATED PARTY 4,464,389 -- 4,464,389 -- DEFERRED INCOME TAX 630,632 -- 630,632 -- INVESTMENTS 555,309 417,085 -- 138,224 OTHER ASSETS 122,846 184 122,662 -- PROPERTY AND EQUIPMENT LESS ACCUMULATED DEPRECIATION 14,087,898 1,455,311 -- 12,632,587 INTANGIBLE ASSETS 22,099,147 1,827,538 -- 20,271,609 OTHER ASSETS ELIMINATED IN CONSOLIDATION 434,249 7,171,441 (6,737,192) -- ----------- ----------- ----------- ----------- TOTAL ASSETS $73,400,788 $12,899,552 $25,590,130 $33,911,106 =========== =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES CURRENT MATURITIES OF LONG-TERM DEBT $ 3,581,016 $ -- $ 3,581,016 $ -- CURRENT MATURITIES OF CAPITAL LEASE OBLIGATIONS 276,531 43,309 233,222 -- NOTES PAYABLE- STOCKHOLDERS 471,004 -- 471,004 -- INTEREST PAYABLE- STOCKHOLDERS 389,151 -- 389,151 -- ACCOUNTANTS PAYABLE 617,827 97,185 520,642 -- ACCRUED EXPENSES 1,023,182 127,996 865,186 -- INCOME TAXES PAYABLE 31,772 (29,099) 60,871 -- DEFERRED INCOME TAXES 4,326 -- 4,326 -- ----------- ----------- ----------- ----------- TOTAL CURRENT LIABILITIES 6,394,809 239,391 6,155,418 -- LONG-TERM DEBT, LESS CURRENT MATURITIES 30,306,845 -- 30,306,845 -- CAPITALIZED LEASE OBLIGATIONS, LESS CURRENT MATURITIES 4,338,061 708,735 3,629,326 -- NOTES PAYABLE - STOCKHOLDERS 13,196,355 -- 13,196,355 -- DEFERRED INCOME TAXES 1,424,535 -- 1,424,535 -- DEFERRED COMPENSATION 1,592,963 -- 1,592,963 -- OTHER LIABILITIES ELIMINATED IN CONSOLIDATION -- 6,003,651 (6,003,651) -- ----------- ----------- ----------- ----------- TOTAL LIABILITIES 57,253,568 6,951,777 50,301,791 -- STOCKHOLDERS' EQUITY 16,147,220 5,947,776 10,199,444 -- ----------- ----------- ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $73,400,788 $12,899,553 $60,501,235 $ -- =========== =========== =========== ===========

PRO FORMA SCHEDULE OF INCOME FROM OPERATIONS -------------------------------------------- JUNE 30, 2000 ----------------------------------------------- Consolidated Pro Forma Income Excluded Income Statement Operations Statement ------------ ---------- ----------- REVENUE: SALES $22,013,949 $ 4,421,070 $17,592,879 OTHER OPERATING REVENUE 208,241 90,247 117,994 ----------- ----------- ----------- 22,222,190 4,511,317 17,710,873 DIRECT EXPENSES 2,443,023 434,466 2,008,557 ----------- ----------- ----------- GROSS PROFIT 19,779,167 4,076,851 15,702,316 ----------- ----------- ----------- OPERATING EXPENSES 12,476,195 2,740,603 9,735,592 GENERAL AND ADMINISTRATIVE EXPENSES 5,512,119 1,258,724 4,253,395 ----------- ----------- ----------- 17,988,314 3,999,327 13,988,987 ----------- ----------- ----------- INCOME FROM OPERATIONS $ 1,790,853 $ 77,524 $ 1,713,329 =========== =========== ===========

PRO FORMA SCHEDULE OF INCOME FROM OPERATIONS -------------------------------------------- FOR THE SIX MONTHS ENDED JUNE 30, 1999 ------------------------------------------------ Consolidated Pro Forma Income Excluded Income Statement Operations Statement ------------ ---------- ----------- REVENUE: SALES $21,490,598 $4,734,626 $16,755,972 OTHER OPERATING REVENUE 228,433 105,986 122,447 ----------- ---------- ----------- 21,719,031 4,840,612 16,878,419 DIRECT EXPENSES 2,328,296 476,583 1,851,713 ----------- ---------- ----------- GROSS PROFIT 19,390,735 4,364,029 15,026,706 ----------- ---------- ----------- OPERATING EXPENSES 12,174,684 2,858,641 9,316,043 GENERAL AND ADMINISTRATIVE EXPENSES 6,926,682 1,201,250 5,725,432 ----------- ---------- ----------- 19,101,366 4,059,891 15,041,475 ----------- ---------- ----------- INCOME(LOSS) FROM OPERATIONS $ 289,369 $ 304,138 $ (14,769) =========== ========== ===========

ACTUAL ADJUSTMENTS PRO FORMA CITADEL FOR RECENT 2000 CITADEL COMMUNICATIONS TRANSACTIONS (1) COMMUNICATIONS -------------- ---------------- -------------- ASSETS Cash and cash equivalents $ 6,610 $ (4,074) $ 2,536 Accounts and notes receivable, net 68,041 -- 68,041 Prepaid expenses 4,487 -- 4,487 Net assets of discontinued operations 2,350 -- 2,350 ---------- -------- ---------- Total current assets 81,488 (4,074) 77,414 Property and equipment, net 90,783 19,013 109,796 Intangible assets, net 939,809 375,712 1,315,521 Restricted cash 2,000 -- 2,000 Other assets 7,105 -- 7,105 ---------- -------- ---------- TOTAL ASSETS $1,121,185 $390,651 $1,511,836 ========== ======== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued liabilities $ 16,577 $ -- $ 16,577 Current maturities of other long-term obligations 842 -- 842 ---------- -------- ---------- Total current liabilities 17,419 -- 17,419 Notes payable, less current maturities 280,000 389,000 669,000 Senior subordinated notes 210,734 -- 210,734 Other long-term obligations, less current maturities 2,744 -- 2,744 Deferred tax liability 77,692 -- 77,692 Exchangeable preferred stock 89,818 -- 89,818 Common stock and additional paid-in capital 517,168 -- 517,168 Deferred compensation (20,681) -- (20,681) Accumulated deficit/ retained earnings (53,709) 1,651 (52,058) ---------- -------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,121,185 $390,651 $1,511,836 ========== ======== ==========

ACTUAL ADJUSTMENTS FOR PRO FORMA CITADEL COMPLETED CITADEL COMMUNICATIONS TRANSACTIONS(1) COMMUNICATIONS -------------- --------------- -------------- Net revenue $114,349 $ 51,545 $165,894 Station operating expenses 72,490 36,076 108,566 Depreciation and amortization 28,518 24,460 52,978 Corporate general and administrative 4,382 -- 4,382 Non-cash deferred compensation 6,455 -- 6,455 -------- -------- -------- Operating expenses 111,845 60,536 172,381 Operating income (loss) 2,504 (8,991) (6,487) Interest expense 17,632 23,809 41,441 Other (income) expense, net (3,497) 57 (3,440) --------- -------- -------- Income (loss) from continuing operations before income taxes (11,631) (32,857) (44,488) Income taxes (benefit) (1,307) (1,062) (2,369) Net income (loss) from continuing operations (10,324) (31,795) (42,119) Net (loss) from discontinued operations, net of tax (1,775) -- (1,775) Net income (loss) (12,099) (31,795) (43,894) Dividend requirement for exchangeable preferred stock (5,832) -- (5,832) --------- -------- -------- Income (loss) applicable to common shares $(17,931) $(31,795) $(49,726) ======== ======== ========

DICK MICHIGAN BLOOMINGTON WWFX BPH ACQUISITION TRANSACTIONS ACQUISITION ACQUISITION TRANSACTIONS ----------- ------------ ----------- ----------- ------------ Net revenue $ 15,703 $ 7,692 $14,692 $ 922 $11,362 Station operating expenses 12,359 4,024 10,094 457 8,310 Depreciation and amortization 9,554 3,527 6,847 409 3,793 Corporate general and administrative -- -- -- -- -- -------- ------- ------- ----- ------- Operating expenses 21,913 7,551 16,941 866 12,103 -------- ------- ------- ----- ------- Operating income (loss) (6,210) 141 (2,249) 56 (741) Interest expense 11,271 3,866 6,248 473 3,696 Other (income) expenses, net 57 -- -- -- -- -------- ------- ------- ----- ------- Income (loss) from continuing operations before income taxes (17,538) (3,725) (8,497) (417) (4,437) Income taxes (benefit) -- -- (1,062) -- -- -------- ------- ------- ----- ------- Net income (loss) from continuing operations $(17,538) $(3,725) $(7,435) $(417) $(4,437) ======== ======= ======= ===== =======

WORC AND ADJUSTMENTS LAFAYETTE WXLO FOR THE THE COMPLETED ACQUISITION ACQUISITION 2000 OFFERING TRANSACTIONS ----------- ----------- ------------- ------------- Net revenue $ 688 $ 486 $ -- $ 51,545 Station operating expenses 464 368 -- 36,076 Depreciation and amortization 151 179 -- 24,460 Corporate general and administrative -- -- -- -- ----- ----- ------- -------- Operating expenses 615 547 -- 60,536 ----- ----- ------- -------- Operating income (loss) 73 (61) -- (8,991) Interest expense 166 178 (2,089) 23,809 Other (income) expenses, net -- -- -- 57 ----- ----- ------- -------- Income (loss) from continuing operations before income taxes (93) (239) 2,089 (32,857) Income tax (benefit) -- -- -- (1,062) ----- ----- ------- -------- Net income (loss) from continuing operations (93) (239) 2,089 (31,795) ===== ===== ======= ========

ACTUAL ADJUSTMENTS FOR PRO FORMA CITADEL COMPLETED CITADEL COMMUNICATIONS TRANSACTIONS(1) COMMUNICATIONS -------------- --------------- -------------- Net revenue $ 178,495 $145,185 $323,680 Station operating expenses 115,312 95,143 210,455 Depreciation and amortization 35,749 68,245 103,994 Corporate general and administrative 7,010 (131) 6,879 Non-cash deferred compensation 1,727 -- 1,727 --------- -------- -------- Operating expenses 159,798 163,257 323,055 --------- -------- -------- Operating income (loss) 18,697 (18,072) 625 Interest expense 25,385 45,746 71,131 Other (income) expense, net (388) (8,406) (8,794) --------- -------- -------- Income (loss) from continuing operations before income taxes (6,300) (55,412) (61,712) Income tax (benefit) (1,647) (2,975) (4,622) Net income (loss) from continuing operations (4,653) (52,437) (57,090) Net (loss) from discontinued operations, net of tax (4,275) -- (4,275) Net income (loss) (8,928) (52,437) (61,365) Dividend requirement for exchangeable preferred stock (14,103) 3,324 (10,779) --------- -------- -------- Income (loss) applicable to common shares $ (23,031) $(49,113) $(72,144) ========= ======== ========

DICK MICHIGAN BLOOMINGTON BPH ACQUISITION TRANSACTIONS ACQUISITION TRANSACTIONS ----------- ------------ ----------- ------------ Net Revenue $ 31,205 $15,264 $ 28,304 $ 42,061 Station operating expenses 21,960 8,071 19,354 28,997 Depreciation and amortization 19,107 7,054 13,695 13,006 Corporate general and administrative -- -- -- -- -------- ------- -------- -------- Operating expenses 41,067 15,125 33,049 42,003 -------- ------- -------- -------- Operating income (loss) (9,862) 139 (4,745) 58 Interest expense 22,541 7,732 12,496 12,671 Other (income) expenses, net 1,232 -- -- -- -------- ------- -------- -------- Income (loss) from continuing operations before income taxes (33,635) (7,593) (17,241) (12,613) Income tax (benefit) -- -- (2,125) -- Net income (loss) from continuing operations (33,635) (7,593) (15,116) (12,613) Net (loss) from discontinued operations, net of tax -- -- -- -- Net income (loss) (33,635) (7,593) (15,116) (12,613) Dividend requirement for exchangeable preferred stock -- -- -- -- -------- ------- -------- -------- Income (loss) applicable to common shares (33,635) (7,593) (15,116) (12,613) ======== ======= ======== ========

PORTSMOUTH/ CHARLESTON/ DOVER/ BINGHAMTON/ OKLAHOMA ROCHESTER/ MUNCIE/ BATON ROUGE/ CITY PORTLAND KOKOMO LAFAYETTE ACQUISITION ACQUISITION ACQUISITION ACQUISITION ----------- ----------- ----------- ----------- Net Revenue $ 9,736 $10,642 $ 9,543 $1,371 Station operating expenses 6,402 6,021 6,711 1,275 Depreciation and amortization 4,298 3,628 2,685 628 Corporate general and administrative -- -- -- -- ------- ------- ------- ------ Operating expenses 10,700 9,649 9,396 1,903 ------- ------- ------- ------ Operating income (loss) (964) 993 147 (532) Interest expense 4,282 2,994 2,343 -- Other (income) expenses, net -- -- -- -- ------- ------- ------- ------ Income (loss) from continuing operations before income taxes (5,246) (2,001) (2,196) (532) Income tax (benefit) -- (724) -- (126) Net income (loss) from continuing operations (5,246) (1,277) (2,196) (406) Net (loss) from discontinued operations, net of tax -- -- -- -- Net income (loss) (5,246) (1,277) (2,196) (406) Dividend requirement for exchangeable preferred stock -- -- -- -- ------- ------- ------- ------ Income (loss) applicable to common shares $(5,246) (1,277) $(2,196) $ (406) ======= ======= ======= ======

CARLISLE ACQUISITION, CAPSTAR TRANSACTIONS, KOOJ ACQUISITION WXL0 ACQUISITION, ADJUSTMENTS LAFAYETTE FOR THE ACQUISITION, 1999 OFFERING, WORC ACQUISITION, THE PREFERRED SAGINAW/ WWFX ACQUISITION AND REDEMPTION BAY CITY MARATHON AND THE THE COMPLETED ACQUISITION DISPOSITION 2000 OFFERING TRANSACTIONS ----------- ----------- ------------- ------------ Net Revenue $ 526 $(3,467) $ -- $145,185 Station operating expenses 486 (4,134) -- 95,143 Depreciation and amortization 202 3,942 -- 68,245 Corporate general and administrative -- (131) -- (131) ----- ------- -------- -------- Operating expenses 688 (323) -- 163,257 ----- ------- -------- -------- Operating income (loss) (162) (3,144) -- (18,072) Interest expense -- 2,395 (21,708) 45,746 Other (income) expenses, net -- (9,638) -- (8,406) ----- ------- -------- -------- Income (loss) from continuing operations before income taxes (162) 4,099 21,708 (55,412) Income tax (benefit) -- -- -- (2,975) Net income (loss) from continuing operations (162) 4,099 21,708 (52,437) Net (loss) from discontinued operations, net of tax -- -- -- -- Net income (loss) (162) 4,099 21,708 (52,437) Dividend requirement for exchangeable preferred stock -- -- 3,324 3,324 ----- ------- -------- -------- Income (loss) applicable to common shares $(162) 4,099 $ 25,032 (49,113) ===== ======= ======== ========

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