Home URBAN Radio One Reports Fourth Quarter Results (details)

Radio One Reports Fourth Quarter Results (details)

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Radio One, Inc. (NASDAQ:  ROIAK  and ) today reported its results for the quarter ended  December 31, 2011. Giving effect to the consolidation of TV One, net revenue was approximately  $98.1 million, an increase of 37.8% from the same period in 2010.  Also giving effect to the consolidation of TV One, station (1) was approximately  $35.3 million, an increase of 25.6% from the same period in 2010. The Company recorded a non-cash impairment charge against its goodwill and other intangible assets of approximately  $22.3 million, which led to a net operating loss of approximately  $9.0 million. Net loss was approximately  $19.1 million  or a loss of$0.38  per share, a decrease from the reported net loss of approximately  $27.2 million  or  $0.52  per share for the same period in 2010.

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Alfred C. , III, Radio One’s CEO and President stated, “Our was impacted by a combination of tough political comps, non-recurring national accounts and certain format changes that we effected during the quarter. Normalizing for political and issue money, our underlying revenue was down approximately 4.2%. While this is disappointing, I believe our is poised to rebound strongly in 2012, with mid to high single digit revenue growth in both the first and second quarters. TV One continues its strong performance with fourth quarter revenue growth of 8.7% and growth of approximately 102% compared to fourth quarter 2010. We expect TV One’s full year to increase to approximately  $40 million  for 2012. Before intercompany management charges, our internet business generated positive adjusted (2) for the second sequential quarter, and we expect that division to be cash-flow positive for 2012.”

RESULTS OF OPERATIONS
Three Months Ended December 31,Year Ended December 31,
2011201020112010
(as adjusted)(3)(as adjusted)(3)
STATEMENT OF OPERATIONS(unaudited)(unaudited)(audited)
(in thousands, except share data)(in thousands, except share data)
NET REVENUE$                    98,093$                    71,163$                  364,609$                  279,720
OPERATING EXPENSES
Programming and technical, excluding stock-based compensation32,89818,260115,18974,852
Selling, general and administrative, excluding stock-based compensation29,88924,848125,692102,231
Corporate  selling,  general  and  administrative,  excluding  stock-based  compensation8,4827,58033,69628,117
Stock-based compensation2,2519225,1465,799
Depreciation and amortization11,2433,22937,06917,385
Impairment of long-lived assets22,33136,06322,33136,063
Total operating expenses107,09490,902339,123264,447
            Operating (loss) income(9,001)(19,739)25,48615,273
INTEREST INCOME23432354127
INTEREST EXPENSE23,10815,77588,33046,834
GAIN ON INVESTMENT IN AFFILIATED COMPANY146,879
GAIN (LOSS) ON RETIREMENT OF DEBT6,646(7,743)6,646
EQUITY IN INCOME OF AFFILIATED COMPANY1,7263,2875,558
OTHER EXPENSE, net3211273243,061
(Loss)  income  before  (benefit  from)  provision  for  income  taxes,  noncontrolling

interest  in  income  of  subsidiaries  and  income  (loss)  from  discontinued  operations

(32,196)(27,237)79,609(22,291)
(BENEFIT FROM) PROVISION FOR INCOME TAXES(17,689)(714)64,2163,971
Net (loss) income from continuing operations(14,507)(26,523)15,393(26,262)
GAIN (LOSS) FROM DISCONTINUED OPERATIONS, net of tax50(47)(20)(363)
CONSOLIDATED NET (LOSS) INCOME(14,457)(26,570)15,373(26,625)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS4,61158110,0142,008
CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$                  (19,068)$                  (27,151)$                      5,359$                  (28,633)
AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS
NET (LOSS) INCOME FROM CONTINUING OPERATIONS$                  (19,118)$                  (27,104)$                      5,379$                  (28,270)
GAIN (LOSS) FROM DISCONTINUED OPERATIONS, net of tax50(47)(20)(363)
CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$                  (19,068)$                  (27,151)$                      5,359$                  (28,633)
Weighted average shares outstanding – basic(4)49,782,01652,087,46050,739,44751,509,239
Weighted average shares outstanding – diluted(5)49,782,01652,087,46052,294,32251,509,239
Three Months Ended December 31,Year Ended December 31,
2011201020112010
(as adjusted)(3)(as adjusted)(3)
(unaudited)(unaudited)(audited)
(in thousands, except per share data)(in thousands, except per share data)
PER SHARE DATA – basic and diluted:
Net (loss) income from continuing operations (basic)$                      (0.38)$                  (0.52)$                      0.11$                  (0.55)
Income (loss) from discontinued operations, net of tax (basic)0.00(0.00)(0.00)(0.01)
Consolidated net (loss) income attributable to common stockholders (basic)$                      (0.38)$                  (0.52)$                      0.11$                  (0.56)
Net (loss) income from continuing operations (diluted)$                      (0.38)$                  (0.52)$                      0.10$                  (0.55)
Income (loss) from discontinued operations, net of tax (diluted)0.00(0.00)(0.00)(0.01)
Consolidated net (loss) income attributable to common stockholders (diluted)$                      (0.38)$                  (0.52)$                      0.10$                  (0.56)
SELECTED OTHER DATA
Station operating income (1)$                    35,306$                28,055$                123,728$              102,637
Station operating income margin (% of net revenue)36.0%39.4%33.9%36.7%
Station operating income reconciliation:
Consolidated  net  (loss)  income  attributable  to  common  stockholders$                  (19,068)$              (27,151)$                    5,359$              (28,633)
Add  back  non-station operating income items included in consolidated net income (loss):
Interest income(234)(32)(354)(127)
Interest expense23,10815,77588,33046,834
(Benefit from) provision for income taxes(17,689)(714)64,2163,971
Corporate selling, general and administrative expenses8,4827,58033,69628,117
Stock-based compensation2,2519225,1465,799
Gain on investment in affiliated company(146,879)
(Gain) loss on retirement of debt(6,646)7,743(6,646)
Equity in income of affiliated company(1,726)(3,287)(5,558)
Other expense, net3211273243,061
Depreciation and amortization11,2433,22937,06917,385
Noncontrolling interest in income of subsidiaries4,61158110,0142,008
Impairment of long-lived assets22,33136,06322,33136,063
(Income) loss from discontinued operations, net of tax(50)4720363
Station operating income$                    35,306$                28,055$                123,728$              102,637
Adjusted EBITDA(2)$                    26,824$                20,475$                  90,032$                74,520
Adjusted EBITDA reconciliation:
Consolidated net (loss) income attributable to common stockholders$                  (19,068)$              (27,151)$                    5,359$              (28,633)
Interest income(234)(32)(354)(127)
Interest expense23,10815,77588,33046,834
(Benefit from) provision for income taxes(17,689)(714)64,2163,971
Depreciation and amortization11,2433,22937,06917,385
EBITDA$                    (2,640)$                (8,893)$                194,620$                39,430
Stock-based compensation2,2519225,1465,799
Gain on investment in affiliated company(146,879)
(Gain) loss on retirement of debt(6,646)7,743(6,646)
Equity in income of affiliated company(1,726)(3,287)(5,558)
Other expense, net3211273243,061
Noncontrolling interest in income of subsidiaries4,61158110,0142,008
Impairment of long-lived assets22,33136,06322,33136,063
(Income) loss from discontinued operations, net of tax(50)4720363
Adjusted EBITDA$                    26,824$                20,475$                  90,032$                74,520
December 31, 2011December 31, 2010
(as adjusted)(3)
(unaudited)
(in thousands)
SELECTED BALANCE SHEET DATA:
Cash and cash equivalents$                    35,939$                       9,192
Intangible assets, net1,244,861838,945
Total assets1,486,482999,212
Total debt (including current portion)808,904642,222
Total liabilities1,053,071774,242
Total stockholders’ equity413,068194,335
Redeemable noncontrolling interest20,34330,635
Noncontrolling interest205,063
Current Amount OutstandingApplicable Interest Rate
(in thousands)
SELECTED LEVERAGE AND SWAP DATA:
Senior bank term debt, net of original issue discount of approximately $6.7 million (subject to variable rates)  (a)$                  376,3577.50%
12-1/2%/15%   senior subordinated notes (fixed rate)312,80015.00%
6-3/8% senior subordinated notes (fixed rate)7476.38%
10%  Senior  Secured  TV  One  Notes  due  March  2016  (fixed  rate)119,00010.00%
(a)Subject to variable Libor Rate plus a spread currently at 6.00% and incorporated into the applicable interest rate set forth above.  

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements represent management’s current expectations and are based upon information available to Radio One at the time of this release. These forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond Radio One’s control, that may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially are described in Radio One’s reports on Forms 10-K and 10-K/A, and 10-Q and 10-Q/A and other filings with the Securities and Exchange Commission (the “SEC”). Radio One does not undertake any duty to update any forward-looking statements.

Net revenue increased to approximately  $98.1 million  for the quarter ended  December 31, 2011, from approximately  $71.2 million  for the same period in 2010, an increase of 37.8%. Net revenues from our radio segment for the quarter endedDecember 31, 2011  decreased 9.4% from the same period in 2010. We began to consolidate the results of TV One during the quarter ended  June 30, 2011  and recognized approximately  $31.3 million  of incremental revenue from our new cable television segment during the three months ended  December 31, 2011.  We experienced net revenue growth for our radio stations in ourCincinnati,  Raleigh  and  St. Louis  markets, while our  Baltimore,  Columbus,  Dallas,  Houston,  Philadelphia  and  Washington D.C.clusters experienced significant net revenue declines. Reach Media net revenue increased 13.0% for the three months endedDecember 31, 2011  compared to the same period in 2010 and net revenue from our internet business increased 30.5% for the same period.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets increased to approximately  $71.3 million  from approximately  $50.7 million  between the quarters ended  December 31, 2011  and 2010, respectively, an increase of 40.6%. Approximately  $13.6 million  of the increase is a result of the TV One consolidation specifically related to programming and technical operating expenses. For our cable television segment, these operating expenses include expenses associated with the technical, programming, production, and content management. Approximately$11.2 million  of the increase in programming and technical relates specifically to content amortization. Excluding the impact of consolidating TV One results, our operating expenses not including depreciation and amortization, stock-based compensation and impairment of long-lived assets remained flat for the quarter compared to the same period in 2010.

Stock-based compensation increased to approximately  $2.3 million  for the quarter ended  December 31, 2011, compared to$922,000  for the same period in 2010, an increase of 149.5%. Increased stock-based compensation expense was due to the accelerated vesting of approximately 1,000,000 shares of restricted stock representing the final portion of shares pursuant to a long-term incentive plan granted to officers and certain key employees in  January 2010. Stock-based compensation requires measurement of compensation costs for all stock-based awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest.

Depreciation and amortization expense increased to approximately  $11.2 million  compared to approximately  $3.2 million  for the quarters ended  December 31, 2011  and 2010, respectively, an increase of 250.0%. Additional depreciation and amortization expense of approximately  $7.6 million  resulted from the fixed and intangible assets recorded as part of the consolidation of TV One.

Impairment of long-lived assets for the  31, 2011 decreased to approximately  $22.3 million, compared to approximately  $36.1 million  for the same period in 2010, a decrease of 38.2%. Our annual 2011 impairment testing resulted in a non-cash impairment charge to goodwill in our  Columbus  market as well as a non-cash charge associated with Reach Media’s intangible assets. Our 2010 annual impairment testing resulted in a non-cash charge to radio broadcasting licenses inPhiladelphia  as well as a non-cash charge associated with Reach Media goodwill.

Interest expense increased to approximately  $23.1 million  for the quarter ended  December 31, 2011, from approximately  $15.8 million  for the same period in 2010, an increase of 46.2%. The increase in interest expense was due to higher interest rates associated with our new 2011 senior credit facility, our new senior subordinated note and notes issued by TV One.  These instruments were all in effect for the three months ended  December 31, 2011, while none of these instruments, except for our new senior subordinated note, were in place during the comparable period in 2010.    The overall effective rate of borrowing for the three months ended  December 31, 2011  increased approximately 1.5% compared to the three months ended  December 31, 2010.  Approximately  $2.4 million  of the increased interest expense relates to the debt recorded as part of the consolidation of TV One.  The Company made interest payments of approximately  $15.5 million  for the quarter ended  December 31, 2011.

As there were no early bond redemptions for the quarter ended  December 31  2011, there was no gain on retirement of debt to report for the quarter, compared to a gain of approximately  $6.6 million  for the same period in 2010. The fourth quarter 2010 net gain on retirement of debt was due to the early redemption of the Company’s outstanding 6-3/8% Senior Subordinated Notes due 2013 (the “2013 Notes”) at a discount.  This amount was offset by a write-off of approximately  $3.3 million  of debt costs associated with the Company’s previously outstanding 8-7/8% Senior Subordinated Notes due 2011 and the 2013 Notes. A principal amount of  $747,000  remained outstanding as of  December 31, 2011  for the 2013 notes.

There was no equity in income of affiliated company for the quarter ended  December 31, 2011  compared to approximately  $1.7 million  for the same period in 2010, a decrease of 100.0%. Equity in income of affiliated company primarily reflected our estimated equity in the net income of TV One. As a result of the consolidation of TV One during the second quarter of 2011, there was no equity in income of affiliated company for the three months ended  December 31, 2011. Previously, the Company’s share of the net income was driven by TV One’s current capital structure and the Company’s percentage ownership of the equity securities of TV One.

The income tax benefit for the quarter ended  December 31, 2011  was approximately  $17.7 million  compared to a benefit of$714,000  for the same quarter in 2010.  The income tax rate for 2011 reflects the change in the deferred tax liability (“DTL”) associated with certain indefinite-lived intangibles, which increases as tax amortization on these intangibles is recognized and decreases as impairments for book purposes are recorded on these assets.  In addition to the DTL on these intangibles, a portion of the DTL for the partnership interest in TV One cannot be offset by the deferred tax assets from the net operating loss carryforward. The tax benefit for the fourth quarter 2010 relates mostly to the impairment charges for indefinite-lived intangibles recorded in that quarter, which had the impact of reducing the Company’s deferred tax liability. The Company paid approximately  $1.0 million  in taxes for the quarter ended  December 31, 2011.

Income (loss) from discontinued operations, net of tax, includes the results of operations for our sold radio stations (or stations made the subject of a local marketing agreement) and Giant Magazine, which ceased publication in  December 2009. Income from discontinued operations, net of tax, was  $50,000  for the quarter ended  December 31, 2011, compared to a loss from discontinued operations, net of tax, of  $47,000  for the same period in 2010.

The increase in noncontrolling interests in income of subsidiaries is due primarily to the impact of consolidating TV One results for the three months ended  December 31, 2011.

Other pertinent financial information includes capital expenditures of approximately  $4.0 million  and  $937,000  for the quarters ended  December 31, 2011  and 2010, respectively.  For the fourth quarter 2011, approximately  $1.8 million  of capital expenditures relates to the Company’s  Washington D.C.  market and Corporate office moves to  Silver Spring, MD.  $500,000relates to expenditures associated with the  Houston  news format switch and  $600,000  relates to a tower upgrade in  Atlanta. The Company received dividends in the amount of approximately  $5.1 million  for the quarter ended  December 31, 2011  and approximately  $14.6 million  for the year ended  December 31, 2011. As of  December 31, 2011, the Company had total debt (net of cash balances) of approximately  $773.0 million. The Company’s cash and cash equivalents by segment are as follows:  Radio One and Internet approximately  $19.4 million, Reach Media approximately  $1.7 million  and Cable Television approximately  $14.9 million. In addition to cash and cash equivalents, the Cable Television segment also has short-term investments of  $761,000  and long-term investments of approximately  $7.4 million. During the quarter ended  December 31, 2011, the Company repurchased 25,250 shares of Class A common stock in the amount of  $32,000  and 752,132 shares of Class D common stock in the amount of  $926,000.  During the year ended  December 31, 2011, the Company repurchased 54,566 shares of Class A common stock in the amount of  $73,000  and 4,245,567 shares of Class D common stock in the amount of approximately  $9.4 million.

:

For comparative purposes, the following more detailed, unaudited statements of operations for the three months and year endedDecember 31, 2011  and 2010 are included.  These detailed, unaudited and adjusted statements of operations include certain reclassifications associated with accounting for discontinued operations.  These reclassifications had no effect on previously reported net income or loss, or any other previously reported statements of operations, balance sheet or cash flow amounts.

Three Months Ended December 31, 2011
(in thousands, unaudited)
 ConsolidatedRadio  One  Reach

Media

 Internet  Cable

Television

Corporate/

Eliminations/

Other

STATEMENT OF OPERATIONS:
NET REVENUE$98,093$54,245$10,454$4,823$31,313$(2,742)
OPERATING EXPENSES:
Programming and technical32,89814,1315,2871,87213,628(2,020)
Selling, general and administrative29,88921,1291,8763,1324,963(1,211)
Corporate selling, general and administrative8,4821,5171,9744,991
Stock-based compensation2,251384751,792
Depreciation and amortization11,2431,6159898197,582238
Impairment of long-lived assets22,33114,5097,822
Total operating expenses107,09451,76817,4915,89828,1473,790
          Operating (loss) income(9,001)2,477(7,037)(1,075)3,166(6,532)
INTEREST INCOME234319833
INTEREST EXPENSE23,108426182,42420,240
OTHER EXPENSE, net3213218(8)
(Loss) income before (benefit from) provision for income taxes, noncontrolling interest in income of subsidiaries and income from discontinued operations(32,196)1,730(7,052)(1,075)932(26,731)
(BENEFIT FROM) PROVISION FOR INCOME TAXES(17,689)(15,134)(2,555)
Net (loss) income from continuing operations(14,507)16,864(4,497)(1,075)932(26,731)
INCOME FROM DISCONTINUED OPERATIONS, net of tax50482
CONSOLIDATED NET (LOSS) INCOME(14,457)16,912(4,497)(1,073)932(26,731)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS4,6114,611
NET  (LOSS)  INCOME  ATTRIBUTABLE  TO  COMMON  STOCKHOLDERS$(19,068)$16,912$(4,497)$(1,073)$932$(31,342)
Adjusted EBITDA(2)$26,824$18,985$1,774$(181)$10,748$(4,502)
Three Months Ended December 31, 2010
(in thousands, unaudited, as adjusted)(3)
 Consolidated  Radio  One  Reach

Media

 InternetCorporate/

Eliminations/

Other

STATEMENT OF OPERATIONS:
NET REVENUE$71,163$59,884$9,250$3,697$(1,668)
OPERATING EXPENSES:
Programming and technical18,26012,8594,7872,353(1,739)
Selling, general and administrative24,84821,2841,3742,560(370)
Corporate selling, general and administrative7,5801,3106,270
Stock-based compensation92213724761
Depreciation and amortization3,2297891,0891,089262
Impairment of long-lived assets36,06319,94916,114
Total operating expenses90,90255,01824,6746,0265,184
          Operating (loss) income(19,739)4,866(15,424)(2,329)(6,852)
INTEREST INCOME322012
INTEREST EXPENSE15,7752315,752
GAIN ON RETIREMENT OF DEBT6,6466,646
EQUITY IN INCOME OF AFFILIATED COMPANY1,7261,726
OTHER EXPENSE, net127148(27)6
(Loss) income before (benefit from) provision for income taxes, noncontrolling interest in income of subsidiaries and loss from discontinued operations(27,237)4,718(15,427)(2,302)(14,226)
(BENEFIT FROM) PROVISION FOR INCOME TAXES(714)(788)74
Net (loss) income from continuing operations(26,523)5,506(15,501)(2,302)(14,226)
LOSS FROM DISCONTINUED OPERATIONS, net of tax(47)(46)(1)
CONSOLIDATED NET (LOSS) INCOME(26,570)5,460(15,501)(2,303)(14,226)
NET  INCOME  ATTRIBUTABLE  TO  NONCONTROLLING  INTERESTS581581
CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$(27,151)$5,460$(15,501)$(2,303)$(14,807)
Adjusted EBITDA(2)$20,475$25,741$1,779$(1,216)$(5,829)
Year Ended December 31, 2011
(in thousands, unaudited)
 Consolidated  Radio  One  Reach

Media

 Internet  Cable

Television

Corporate/

Eliminations/

Other

STATEMENT OF OPERATIONS:
NET REVENUE$364,609$221,396$48,382$17,529$86,024$(8,722)
OPERATING EXPENSES:
Programming and technical115,18953,89521,2068,56339,082(7,557)
Selling, general and administrative125,69284,23014,10511,34219,016(3,001)
Corporate selling, general and administrative33,6966,1153,27124,310
Stock-based compensation5,1468361574,153
Depreciation and amortization37,0696,7053,9523,69421,790928
Impairment of long-lived assets22,33114,5097,822
Total operating expenses339,123160,17553,20023,75683,15918,833
          Operating income (loss)25,48661,221(4,818)(6,227)2,865(27,555)
INTEREST INCOME3541530336
INTEREST EXPENSE88,330426648,61179,229
GAIN ON INVESTMENT IN AFFILIATED COMPANY146,879146,879
LOSS ON RETIREMENT OF DEBT7,7437,743
EQUITY IN INCOME OF AFFILIATED COMPANY3,2873,287
OTHER EXPENSE, net324266850
Income (loss) before provision for income taxes, noncontrolling interest in income of subsidiaries and (loss) income from discontinued operations79,60960,529(4,867)(6,227)(5,451)35,625
PROVISION FOR INCOME TAXES64,21666,185(1,969)
Net income (loss) from continuing operations15,393(5,656)(2,898)(6,227)(5,451)35,625
(LOSS) INCOME FROM DISCONTINUED OPERATIONS, net of tax(20)(24)4
CONSOLIDATED NET INCOME (LOSS)15,373(5,680)(2,898)(6,223)(5,451)35,625
NET  INCOME  ATTRIBUTABLE  TO  NONCONTROLLING  INTERESTS10,01410,014
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$5,359$(5,680)$(2,898)$(6,223)$(5,451)$25,611
Adjusted EBITDA(2)$90,032$83,271$6,956$(2,376)$24,655$(22,474)
Year Ended December 31, 2010
(in thousands, unaudited, as adjusted)(3)
 Consolidated  Radio  One  Reach

Media

 InternetCorporate/

Eliminations/

Other

STATEMENT OF OPERATIONS:
NET REVENUE$279,720$229,314$41,773$16,027$(7,394)
OPERATING EXPENSES:
Programming and technical74,85251,89919,8889,514(6,449)
Selling, general and administrative102,23183,0768,78613,063(2,694)
Corporate selling, general and administrative28,1176,14321,974
Stock-based compensation5,7998341604,805
Depreciation and amortization17,3857,0804,2494,9421,114
Impairment of long-lived assets36,06319,94916,114
Total operating expenses264,447162,83855,18027,67918,750
          Operating income (loss)15,27366,476(13,407)(11,652)(26,144)
INTEREST INCOME1277156
INTEREST EXPENSE46,8347846,756
GAIN ON RETIREMENT OF DEBT6,6466,646
EQUITY IN INCOME OF AFFILIATED COMPANY5,5585,558
OTHER EXPENSE (INCOME), net3,061(84)1333,012
(Loss) income before provision for income taxes, noncontrolling interest in income of subsidiaries and (loss) income from discontinued operations(22,291)66,560(13,414)(11,785)(63,652)
PROVISION FOR INCOME TAXES3,9713,137834
Net (loss) income from continuing operations(26,262)63,423(14,248)(11,785)(63,652)
(LOSS) INCOME FROM DISCONTINUED OPERATIONS, net of tax(363)(624)261
CONSOLIDATED NET (LOSS) INCOME(26,625)62,799(14,248)(11,524)(63,652)
NET  INCOME  ATTRIBUTABLE  TO  NONCONTROLLING  INTERESTS2,0082,008
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$(28,633)$62,799$(14,248)$(11,524)$(65,660)
Adjusted EBITDA(2)$74,520$94,339$6,956$(6,550)$(20,225)

Radio One, Inc. will hold a conference call to discuss its results for the fourth quarter 2011, as well as full year 2011. This conference call is scheduled for  Thursday, March 15, 2012  at  10:00 a.m. Eastern Daylight Time. To participate on this call, U.S. callers may dial toll free 1-800-230-1059; international callers may dial direct (+1) 612-234-9959.

A replay of the conference call will be available from  12:30 p.m. Eastern Daylight Time  March 16, 2012  until  11:59 p.m.  March 18, 2012. Callers may access the replay by calling 1-800-475-6701; international callers may dial direct (+1) 320-365-3844. The replay Access Code is 237163. Access to live audio and a replay of the conference call will also be available on Radio One’s corporate website at  http://www.radio-one.com/. The replay will be made available on the website for seven days after the call.

Radio One, Inc. (http://www.radio-one.com/) is a diversified media company that primarily targets African-American and urban consumers. The Company is one of the nation’s largest radio broadcasting companies, currently owning or operating 53 broadcast stations located in 15 urban markets in  the United States. As a part of its core broadcasting business, Radio One operates syndicated programming including the  Russ Parr Morning Show, the  Yolanda Adams Morning Show, the  Rickey Smiley Morning Show,  CoCo Brother Live,  CoCo Brother’s “Spirit”  program,  Bishop T.D. Jakes’ “Empowering Moments”, theReverend Al Sharpton Show, and the  Warren Ballentine Show. The Company also owns a controlling interest in Reach Media, Inc. (http://www.blackamericaweb.com/), owner of the Tom Joyner Morning Show and other businesses associated with  Tom Joyner. Beyond its core radio broadcasting business, Radio One owns Interactive One (http://www.interactiveone.com/), an online platform serving the African-American community through social content, news, information, and entertainment, which operates a number of branded sites, including News One, UrbanDaily, HelloBeautiful, Community Connect Inc. (http://www.communityconnect.com/), an online social networking company, which operates a number of branded websites, including BlackPlanet, MiGente, and Asian Avenue. In addition, the Company owns a controlling interest in TV One, LLC (http://www.tvoneonline.com/), a cable/satellite network programming primarily to African-Americans.

Notes:

(1) “Station operating income” consists of net loss before depreciation and amortization, corporate expenses, stock-based compensation, equity in income of affiliated company, income taxes, noncontrolling interest in income (loss) of subsidiaries, interest expense, impairment of long-lived assets, other (income) expense, loss (gain) on retirement of debt, (income) loss from discontinued operations, net of tax, interest income and gain on purchase of affiliated company. Station operating income is not a measure of financial performance under generally accepted accounting principles. Nevertheless we believe station operating income is often a useful measure of a broadcasting company’s operating performance and is a significant basis used by our management to measure the operating performance of our stations within the various markets because station operating income provides helpful information about our results of operations apart from expenses associated with our fixed assets and long-lived intangible assets, income taxes, investments, debt financings and retirements, overhead, stock-based compensation, impairment charges, and asset sales. Station operating income is frequently used as one of the bases for comparing businesses in our industry, although our measure of station operating income may not be comparable to similarly titled measures of other companies. Station operating income does not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as an alternative to those measurements as an indicator of our performance. A reconciliation of net loss to station operating income has been provided in this release. Station operating income includes results from all four of our operating segments (radio broadcasting, Reach Media, internet and cable television).

(2) “Adjusted EBITDA” consists of net loss plus (1) depreciation, amortization, income taxes, interest expense, noncontrolling interest in income of subsidiaries, impairment of long-lived assets, stock-based compensation, loss on retirement of debt, loss from discontinued operations, net of tax, less (2) equity in income of affiliated company, other income, interest income, gain on retirement of debt and gain on purchase of affiliated company. Net income before interest income, interest expense, income taxes, depreciation and amortization is commonly referred to in our business as “EBITDA.” Adjusted EBITDA and EBITDA are not measures of financial performance under generally accepted accounting principles. We believe Adjusted EBITDA is often a useful measure of a company’s operating performance and is a significant basis used by our management to measure the operating performance of our business because Adjusted EBITDA excludes charges for depreciation, amortization and interest expense that have resulted from our acquisitions and debt financing, our taxes, impairment charges, as well as our equity in (income) loss of our affiliated company, gain on retirements of debt, and any discontinued operations. Accordingly, we believe that Adjusted EBITDA provides useful information about the operating performance of our business, apart from the expenses associated with our fixed assets and long-lived intangible assets, capital structure or the results of our affiliated company. Adjusted EBITDA is frequently used as one of the bases for comparing businesses in our industry, although our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA and EBITDA do not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as alternatives to those measurements as an indicator of our performance. A reconciliation of net loss to EBITDA and Adjusted EBITDA has been provided in this release.

(3) Certain reclassifications associated with accounting for discontinued operations have been made to prior period balances to conform to the current presentation. These reclassifications had no effect on any other previously reported or consolidated net income or loss or any other statement of operations, balance sheet or cash flow amounts. Where applicable, these financial statements have been identified as “as adjusted.”

(4) For the quarter ended  December 31, 2011  and 2010, Radio One had 49,782,016 and 52,087,460 shares of common stock outstanding on a weighted average basis (basic), respectively. For the year ended  December 31, 2011  and 2010, Radio One had 50,739,447 and 51,509,239 shares of common stock outstanding on a weighted average basis (basic), respectively.

(5) For the quarter ended  December 31, 2011  and 2010, Radio One had 49,782,016 and 52,087,460 shares of common stock outstanding on a weighted average basis (fully diluted) for outstanding stock options, respectively.  For the year endedDecember 31, 2011  and 2010, Radio One had 52,294,322 and 51,509,239 shares of common stock outstanding on a weighted average basis (fully diluted) for outstanding stock options, respectively.

 

SOURCE Radio One, Inc.


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