Radio One, Inc. Reports Fourth Quarter Results

Feb 25, 2016, 06:45 ET from Radio One, Inc.

WASHINGTON, Feb. 25, 2016 /PRNewswire/ -- Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended December 31, 2015. Net revenue was approximately $109.4 million, a slight decrease of 0.3% from the same period in 2014.  Station operating income1 was approximately $41.0 million, a decrease of 3.5% from the same period in 2014. The Company reported an operating loss of approximately $11.3 million for the three months ended December 31, 2015, compared to operating income of $19.4 million for the same period in 2014. Net loss was approximately $24.3 million or $0.50 per share compared to $13.5 million or $0.28 per share, for the same period in 2014. 

Alfred C. Liggins, III, Radio One's CEO and President stated, "Overall, our radio advertising revenue was down 5.2% for the final quarter of 2015.  We underperformed our markets in Atlanta, Baltimore and Houston, but outperformed in Washington DC. Our audience ratings have generally shown strong growth year over year, and I anticipate that we will monetize these audience gains in 2016. While our gross cable television advertising revenues were up by 11% for the quarter, the liability incurred due to under delivery against rate card meant that overall TV advertising revenue was down by 3.5% for the quarter. This was more than offset by the 27.5% increase in cable television affiliate fees. Management remains focused on turning around underperforming radio markets and advancing our digital and cross platform sales strategies. We have had a number of significant client successes with our One Solution cross platform sales and marketing effort, and I expect that momentum to continue into 2016." 

RESULTS OF OPERATIONS



















Three Months Ended December 31,


Year Ended December 31, 



2015


2014


2015


2014

STATEMENT OF OPERATIONS

(unaudited)


(unaudited)





(in thousands, except share data)


(in thousands, except share data)











NET REVENUE

$                  109,384


$                  109,730


$                  450,861


$                  441,387


OPERATING EXPENSES









Programming and technical, excluding stock-based compensation

35,743


35,977


134,410


141,689


Selling, general and administrative, excluding stock-based compensation

32,631


31,253


149,444


142,317


Corporate selling, general and administrative, excluding stock-based compensation

15,327


12,516


49,167


41,800


Stock-based compensation

1,312


1,423


5,107


1,594


Depreciation and amortization 

9,010


9,137


35,355


36,822


Impairment of long-lived assets

26,666


-


41,211


-


Total operating expenses 

120,689


90,306


414,694


364,222


             Operating (loss) income

(11,305)


19,424


36,167


77,165


INTEREST INCOME

34


192


102


366


INTEREST EXPENSE

20,418


19,342


80,038


79,810


LOSS ON RETIREMENT OF DEBT

-


-


7,091


5,679


OTHER (INCOME) EXPENSE, net

(30)


(48)


216


(32)


(Loss) income before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries 

(31,659)


322


(51,076)


(7,926)


(BENEFIT FROM) PROVISION FOR INCOME TAXES

(7,853)


8,594


15,058


34,814


CONSOLIDATED NET LOSS

(23,806)


(8,272)


(66,134)


(42,740)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

543


5,179


7,888


19,930


CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

$                  (24,349)


$                  (13,451)


$                  (74,022)


$                  (62,670)











AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS









CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

$                  (24,349)


$                  (13,451)


$                  (74,022)


$                  (62,670)











Weighted average shares outstanding - basic and diluted2

48,220,262


47,608,038


48,027,888


47,525,726










 


Three Months Ended December 31,


Year Ended December 31, 


2015


2014


2015


2014

PER SHARE DATA - basic and diluted:

(unaudited)


(unaudited)




(in thousands, except per share data)


(in thousands, except per share data)









    Consolidated net loss attributable to common stockholders (basic and diluted)

$                      (0.50)


$                  (0.28)


$                    (1.54)


$                  (1.32)









SELECTED OTHER DATA








Station operating income 1

$                    41,010


$                42,500


$                167,007


$              157,381

Station operating income margin (% of net revenue)

37.5%


38.7%


37.0%


35.7%









Station operating income reconciliation:
















    Consolidated net loss attributable to common stockholders

$                  (24,349)


$              (13,451)


$                (74,022)


$              (62,670)

    Add back non-station operating income items included in consolidated net loss:








Interest income

(34)


(192)


(102)


(366)

Interest expense

20,418


19,342


80,038


79,810

(Benefit from) provision for income taxes

(7,853)


8,594


15,058


34,814

Corporate selling, general and administrative expenses

15,327


12,516


49,167


41,800

Stock-based compensation

1,312


1,423


5,107


1,594

Loss on retirement of debt

-


-


7,091


5,679

Other (income) expense, net

(30)


(48)


216


(32)

Depreciation and amortization

9,010


9,137


35,355


36,822

Noncontrolling interest in income of subsidiaries

543


5,179


7,888


19,930

Impairment of long-lived assets

26,666


-


41,211


-

Station operating income

$                    41,010


$                42,500


$                167,007


$              157,381









Adjusted EBITDA3

$                    28,911


$                32,833


$                125,470


$              121,388









Adjusted EBITDA reconciliation:
















    Consolidated net loss attributable to common stockholders

$                  (24,349)


$              (13,451)


$                (74,022)


$              (62,670)

Interest income

(34)


(192)


(102)


(366)

Interest expense

20,418


19,342


80,038


79,810

(Benefit from) provision for income taxes

(7,853)


8,594


15,058


34,814

Depreciation and amortization

9,010


9,137


35,355


36,822

EBITDA

$                    (2,808)


$                23,430


$                  56,327


$                88,410

Stock-based compensation

1,312


1,423


5,107


1,594

Loss on retirement of debt

-


-


7,091


5,679

Other (income) expense, net

(30)


(48)


216


(32)

Noncontrolling interest in income of subsidiaries

543


5,179


7,888


19,930

Employment Agreement Award and incentive plan award expenses

2,461


2,368


4,884


4,606

Severance related costs*

767


481


2,746


1,201

Impairment of long-lived assets

26,666


-


41,211


-

Adjusted EBITDA

$                    28,911


$                32,833


$                125,470


$              121,388









*The Company has modified the definition of Adjusted EBITDA during 2015 for the inclusion of severance related costs.  

All prior periods have been reclassified to conform to current period presentation.



 


December 31, 2015


December 31, 2014

(unaudited) 





(in thousands)

SELECTED BALANCE SHEET DATA:



Cash and cash equivalents

$                    67,376


$                   67,781


Intangible assets, net

1,042,956


1,112,443


Total assets

1,346,524


1,391,694


Total debt (including current portion, net of original issue discount and issuance costs)

1,024,337


813,444


Total liabilities

1,407,062


1,160,286


Total (deficit) equity

(71,824)


220,572


Redeemable noncontrolling interest

11,286


10,836


Noncontrolling interest

751


201,674








Current Amount

Outstanding


Applicable Interest

Rate


(in thousands)



SELECTED LEVERAGE DATA:



2015 Credit Facility, net of original issue discount and issuance costs of approximately $11.9 million (subject to variable rates) (a)

$                  336,339


5.11%


9.25% senior subordinated notes due February 2020, net of original issue discount and issuance costs of approximately $3.2 million (fixed rate)

331,796


9.25%


7.375% senior secured notes due April 2022, net of original issue discount and issuance costs of approximately $5.7 million (fixed rate)

344,330


7.375%


Comcast Note due April 2019 (fixed rate)

11,872


10.47%


(a)  Subject to variable Libor plus a spread that is 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, 10-Q, 8-K 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 consists of gross revenue, net of local and national agency and outside sales representative commissions. Agency and outside sales representative commissions are calculated based on a stated percentage applied to gross billing.



Three Months Ended December 31,










2015


2014


$ Change



% Change



  (Unaudited)









(in thousands)







Net Revenue:














Radio Advertising


$

55,755


$

58,841


$

(3,086)



-5.2%


Political Advertising



1,172



2,270



(1,098)



-48.4%


Digital Advertising



6,451



7,124



(673)



-9.4%


Cable Television Advertising



19,202



19,891



(689)



-3.5%


Cable Television Affiliate Fees



25,334



19,864



5,470



27.5%


Event Revenues & Other



1,470



1,740



(270)



-15.5%
















Net Revenue (as reported)


$

109,384


$

109,730


$

(346)



-0.3%
















Net revenue decreased to approximately $109.4 million for the quarter ended December 31, 2015, from approximately $109.7 million for the same period in 2014. Net revenues from our radio broadcasting segment decreased 9.1% for the quarter ended December 31, 2015, from the same period in 2014, primarily from declines in our largest markets. We experienced net revenue growth in certain markets (most significantly in our Dallas and Washington D.C. markets); however, this growth was offset by declines in other markets (with our Atlanta, Baltimore, Houston, Indianapolis, and Raleigh markets experiencing the most significant declines). Reach Media's net revenues increased slightly by $162,000 or 1.3% in the fourth quarter 2015, compared to the same period in 2014. We recognized approximately $44.7 million of revenue from our cable television segment during the three months ended December 31, 2015, compared to approximately $39.9 million for the same period in 2014, the increase due primarily from an increase in affiliate revenue. Finally, net revenues for our internet segment decreased 12.1% for the three months ended December 31, 2015, compared to the same period in 2014 due primarily to a decline in alliance revenue.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $83.7 million for the quarter ended December 31, 2015, up 5.0% from the approximately $79.7 million incurred for the comparable quarter in 2014. Corporate selling, general and administrative expenses increased due primarily to higher compensation costs and bonuses for the quarter ended December 31, 2015.  In addition, our cable television segment incurred higher selling, general and administrative expenses associated with marketing costs and higher employee compensation costs.

Depreciation and amortization expense decreased to approximately $9.0 million compared to approximately $9.1 million for the quarters ended December 31, 2015 and 2014, respectively, a decrease of 1.4%. The decrease was due to the completion of useful lives for certain assets. 

Impairment of long-lived assets for the quarter ended December 31, 2015 was approximately $26.7 million. Our annual 2015 impairment testing resulted in a non-cash impairment charge of approximately $3.1 million related to goodwill in our Cincinnati market as well as a non-cash impairment charge of approximately $23.6 million associated with several of our radio broadcasting licenses.

Interest expense increased to approximately $20.4 million for the quarter ended December 31, 2015, compared to approximately $19.3 million for the same period in 2014.  On April 17, 2015, the Company's 2011 Credit Agreement, as amended, and TV One notes were paid off, with balances of $367.6 million and $119.0 million, respectively. The payoffs were achieved by the Company entering into its new $350.0 million 2015 Credit Facility, issuing the 2022 Notes in an aggregate principal amount of $350.0 million and the Comcast Note in the aggregate principal amount of approximately $11.9 million. The Company made cash interest payments of approximately $17.7 million on all outstanding instruments for the quarter ended December 31, 2015, compared to cash interest payments of approximately $10.4 million on all outstanding instruments for the quarter ended December 31, 2014.

The benefit from income taxes for the quarter ended December 31, 2015, was approximately $7.9 million compared to a provision for income taxes of approximately $8.6 million for the comparable period in 2014.  The decrease was due to the impairment of long-lived intangible assets that reduced the deferred tax liabilities and related deferred tax expense for 2015. The Company paid $12,000 and $15,000 in taxes for the quarters ended December 31, 2015 and 2014, respectively.

The decrease in noncontrolling interests in income of subsidiaries is due primarily to our increased ownership percentage of TV One. 

Other pertinent financial information includes capital expenditures of approximately $1.5 million and $1.3 million for the quarters ended December 31, 2015 and 2014, respectively.  As of December 31, 2015, the Company had total debt (net of cash balances, original issue discount and issuance costs) of approximately $957.0 million. During the year ended December 31, 2015, the Company repurchased 345,293 shares of Class D common stock, granted to certain employees, in the amount of approximately $1.4 million. The Company, as part of its 2009 stock plan, is authorized to purchase shares of Class D common stock to satisfy employee's tax obligations in connection with the vesting of share grants under the plan.  There were no stock repurchases made during the three month period ended December 31, 2015, or during the three months or year ended December 31, 2014.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three months and year ended December 31, 2015 and 2014 are included. 






Three Months Ended December 31, 2015






(in thousands, unaudited)
































Corporate/








Radio  


Reach




Cable


Eliminations/






Consolidated

Broadcasting

Media


Internet

Television

Other







STATEMENT OF OPERATIONS:






























NET REVENUE

$

109,384

$

48,303

$

12,271

$

5,415

$

44,725

$

(1,330)


OPERATING EXPENSES:














Programming and technical 


35,743


10,161


5,981


1,618


19,020


(1,037)


Selling, general and administrative


32,631


19,209


2,583


3,719


8,032


(912)


Corporate selling, general and administrative


15,327


-


1,179


-


2,732


11,416


Stock-based compensation


1,312


88


-


20


-


1,204


Depreciation and amortization


9,010


1,440


48


438


6,553


531


Impairment of long-lived assets


26,666


26,666


-


-


-


-


Total operating expenses


120,689


57,564


9,791


5,795


36,337


11,202


           Operating (loss) income 


(11,305)


(9,261)


2,480


(380)


8,388


(12,532)


INTEREST INCOME


34


-


-


-


-


34


INTEREST EXPENSE


20,418


321


-


-


1,919


18,178


OTHER (INCOME) EXPENSE, net


(30)


16


-


-


-


(46)


(Loss) income before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries 


(31,659)


(9,598)


2,480


(380)


6,469


(30,630)


(BENEFIT FROM) PROVISION FOR INCOME TAXES


(7,853)


(8,085)


200


-


32


-


CONSOLIDATED NET (LOSS) INCOME 


(23,806)


(1,513)


2,280


(380)


6,437


(30,630)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


543


-


-


-


-


543


NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(24,349)

$

(1,513)

$

2,280

$

(380)

$

6,437

$

(31,173)


















Adjusted EBITDA3

$

28,911

$

19,264

$

2,726

$

145

$

15,328

$

(8,552)

















 






Three Months Ended December 31, 2014






(in thousands, unaudited)
































Corporate/








Radio  


Reach




Cable


Eliminations/






Consolidated

Broadcasting

Media


Internet

Television

Other







STATEMENT OF OPERATIONS:






























NET REVENUE

$

109,730

$

53,131

$

12,109

$

6,162

$

39,920

$

(1,592)


OPERATING EXPENSES:














Programming and technical 


35,977


10,299


7,681


1,653


17,971


(1,627)


Selling, general and administrative


31,253


19,248


1,679


3,907


7,047


(628)


Corporate selling, general and administrative


12,516


-


1,261


-


2,298


8,957


Stock-based compensation


1,423


102


-


20


-


1,301


Depreciation and amortization


9,137


1,207


285


591


6,518


536


Total operating expenses


90,306


30,856


10,906


6,171


33,834


8,539


           Operating income (loss)


19,424


22,275


1,203


(9)


6,086


(10,131)


INTEREST INCOME


192


-


-


-


35


157


INTEREST EXPENSE


19,342


255


-


-


3,039


16,048


OTHER INCOME, net


(48)


(19)


-


-


-


(29)


Income (loss) before provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries 


322


22,039


1,203


(9)


3,082


(25,993)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


8,594


10,728


(2,134)


-


-


-


CONSOLIDATED NET (LOSS) INCOME 


(8,272)


11,311


3,337


(9)


3,082


(25,993)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


5,179


-


-


-


-


5,179


NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(13,451)

$

11,311

$

3,337

$

(9)

$

3,082

$

(31,172)


















Adjusted EBITDA3

$

32,833

$

24,042

$

1,488

$

614

$

12,716

$

(6,027)

















 






Year Ended December 31, 2015






(in thousands, unaudited)
































Corporate/








Radio  


Reach




Cable


Eliminations/






Consolidated

Broadcasting

Media


Internet

Television

Other







STATEMENT OF OPERATIONS:






























NET REVENUE

$

450,861

$

197,396

$

54,779

$

21,177

$

183,623

$

(6,114)


OPERATING EXPENSES:














Programming and technical 


134,410


40,806


22,981


7,873


67,290


(4,540)


Selling, general and administrative


149,444


83,654


18,493


13,754


37,595


(4,052)


Corporate selling, general and administrative


49,167


-


4,310


-


12,247


32,610


Stock-based compensation


5,107


295


-


72


-


4,740


Depreciation and amortization


35,355


4,910


185


1,997


26,152


2,111


Impairment of long-lived assets


41,211


26,666


-


14,545


-


-


Total operating expenses


414,694


156,331


45,969


38,241


143,284


30,869


           Operating income (loss) 


36,167


41,065


8,810


(17,064)


40,339


(36,983)


INTEREST INCOME


102


-


-


-


(93)


195


INTEREST EXPENSE


80,038


1,236


-


-


9,131


69,671


LOSS ON RETIREMENT OF DEBT


7,091


-


-


-


-


7,091


OTHER EXPENSE, net


216


69


-


-


92


55


(Loss) income before provision for income taxes and
noncontrolling interest in income of subsidiaries 


(51,076)


39,760


8,810


(17,064)


31,023


(113,605)


PROVISION FOR INCOME TAXES


15,058


14,711


315


-


32


-


CONSOLIDATED NET (LOSS) INCOME


(66,134)


25,049


8,495


(17,064)


30,991


(113,605)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


7,888


-


-


-


-


7,888


NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(74,022)

$

25,049

$

8,495

$

(17,064)

$

30,991

$

(121,493)


















Adjusted EBITDA3

$

125,470

$

74,104

$

9,196

$

(307)

$

67,376

$

(24,899)

















 






Year Ended December 31, 2014






(in thousands, unaudited)
































Corporate/








Radio  


Reach




Cable


Eliminations/






Consolidated

Broadcasting


Media


Internet

Television

Other







STATEMENT OF OPERATIONS:






























NET REVENUE

$

441,387

$

213,037

$

52,543

$

24,337

$

157,086

$

(5,616)


OPERATING EXPENSES:














Programming and technical 


141,689


43,057


31,581


8,602


64,282


(5,833)


Selling, general and administrative


142,317


83,667


14,441


14,376


32,098


(2,265)


Corporate selling, general and administrative


41,800


-


4,827


-


7,830


29,143


Stock-based compensation


1,594


118


-


20


-


1,456


Depreciation and amortization


36,822


5,039


1,146


2,422


26,115


2,100


Total operating expenses


364,222


131,881


51,995


25,420


130,325


24,601


           Operating income (loss) 


77,165


81,156


548


(1,083)


26,761


(30,217)


INTEREST INCOME


366


-


-


-


75


291


INTEREST EXPENSE


79,810


1,115


-


-


12,156


66,539


LOSS ON RETIREMENT OF DEBT


5,679


-


-


-


-


5,679


OTHER (INCOME) EXPENSE,  net


(32)


(20)


-


1


96


(109)


(Loss) income before provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries 


(7,926)


80,061


548


(1,084)


14,584


(102,035)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


34,814


36,903


(2,089)


-


-


-


CONSOLIDATED NET (LOSS) INCOME


(42,740)


43,158


2,637


(1,084)


14,584


(102,035)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


19,930


-


-


-


-


19,930


NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(62,670)

$

43,158

$

2,637

$

(1,084)

$

14,584

$

(121,965)


















Adjusted EBITDA3

$

121,388

$

87,431

$

1,694

$

1,403

$

53,176

$

(22,316)

















Radio One, Inc. will hold a conference call to discuss its results for fourth quarter of 2015, as well as full year 2015. The conference call is scheduled for Thursday, February 25, 2016 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-800-230-1059; international callers may dial direct (+1) 612-234-9960.

A replay of the conference call will be available from 12:00 p.m. EST February 25, 2016 until 11:59 p.m. EST February 27, 2016. 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 384389. Access to live audio and a replay of the conference call will also be available on Radio One's corporate website at www.radio-one.com. The replay will be made available on the website for seven days after the call.

Radio One, Inc. (radio-one.com), together with its subsidiaries, is a diversified media company that primarily targets African-American and urban consumers. It is one of the nation's largest radio broadcasting companies, currently owning and/or operating 56 stations in 16 urban markets in the United States. Through its controlling interest in Reach Media, Inc. (blackamericaweb.com), the Company also operates syndicated programming including the Tom Joyner Morning Show, the Russ Parr Morning Show, the Yolanda Adams Morning Show, the Rickey Smiley Morning Show, the DL Hughley Show, Bishop T.D. Jakes' Empowering Moments, and the Reverend Al Sharpton Show.

Beyond its core radio broadcasting franchise, Radio One owns Interactive One (interactiveone.com), the fastest growing and definitive digital resource for Black and Latin Americans, reaching millions each month through social content, news, information, and entertainment. Interactive One operates a number of branded sites including News One (news), The Urban Daily (men), Hello Beautiful (women), Global Grind (Millennials) and social networking websites such as BlackPlanet and MiGente. The Company also owns TV One, LLC (tvone.tv), a cable/satellite network programming serving more than 57 million households, offering a broad range of real-life and entertainment-focused original programming, classic series, movies and music designed to entertain, inform and inspire a diverse audience of adult Black viewers.  Additionally, One Solution combines the dynamics of the Radio One's holdings to provide brands with an integrated and effectively engaging marketing approach that reaches 82% of Black Americans throughout the country.

Notes:

  1. "Station operating income" consists of net loss before depreciation and amortization, corporate expenses, stock-based compensation, 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, and interest income. Station operating income is not a measure of financial performance under generally accepted accounting principles. Nevertheless station operating income 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. Our measure of station operating income may not be comparable to similarly titled measures of other companies as our definition includes the results of all four segments (Radio Broadcasting, Reach Media, Internet and Cable Television). 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 income (loss) to station operating income has been provided in this release.
  2. For the three months ended December 31, 2015 and 2014, Radio One had 48,220,262 and 47,608,038 shares of common stock outstanding on a weighted average basis (basic and fully diluted), for outstanding stock options, respectively.  For the year ended December 31, 2015 and 2014, Radio One had 48,027,888 and 47,525,726 shares of common stock outstanding on a weighted average basis (basic and fully diluted), for outstanding stock options, respectively. 
  3. "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, Employment Agreement and incentive plan award expenses, severance related costs, less (2) other income and interest income. 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. However, 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, 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, including, but not limited to the fact that our definition includes the results of all four segments (Radio Broadcasting, Reach Media, Internet and Cable Television).  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 income (loss) to EBITDA and Adjusted EBITDA has been provided in this release.

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SOURCE Radio One, Inc.