Radio One, Inc. Reports Second Quarter Results

05 Aug, 2014, 06:45 ET from Radio One, Inc.

WASHINGTON, Aug. 5, 2014 /PRNewswire/ -- Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended June 30, 2014.  Net revenue was approximately $108.4 million, a decrease of 9.4% from the same period in 2013, resulting primarily from a timing difference of Reach Media's annual cruise event.  Station operating income1 was approximately $41.0 million, a decrease of 10.0% from the same period in 2013. The Company reported operating income of approximately $22.4 million for the three months ended June 30, 2014, compared to operating income of $18.3 million for the same period in 2013. Net loss was approximately $10.8 million or $0.23 per share compared to $14.2 million or $0.29 per share, for the same period in 2013. 

Alfred C. Liggins, III, Radio One's CEO and President stated, "Our radio division experienced a combination of general market-softness and specific competitive issues. In the markets in which we operate, advertising revenues were down by 3.8% for the quarter compared to our core radio performance of –4.1%.  Part of that decline resulted from the impact of a new competitor in Houston, which has adversely impacted our ratings in that market. Excluding Houston, we outperformed our markets by approximately 210 bps. Third quarter radio revenue pacings are currently negative mid to high single digits, and, while we expect some lift from political advertising, I anticipate that Q3 radio revenues will be down low to mid-single digits. Cable TV revenues were relatively flat for the quarter, and we remain focused on the successful renewal of our carriage agreements."

RESULTS OF OPERATIONS

Three Months Ended June 30, 

Six Months Ended June 30, 

2014

2013

2014

2013

(as adjusted)2

(as adjusted)2

STATEMENT OF OPERATIONS

(unaudited)

(unaudited)

(in thousands, except share data)

(in thousands, except share data)

NET REVENUE

$                  108,414

$                  119,602

$                  219,486

$                  218,714

OPERATING EXPENSES

Programming and technical, excluding stock-based compensation

33,920

32,952

69,192

63,473

Selling, general and administrative, excluding stock-based compensation

33,445

41,020

74,058

73,744

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

9,398

7,975

19,439

17,423

Stock-based compensation

65

47

110

90

Depreciation and amortization 

9,236

9,478

18,506

19,029

Impairment of long-lived assets

-

9,800

-

11,170

Total operating expenses 

86,064

101,272

181,305

184,929

             Operating income

22,350

18,330

38,181

33,785

INTEREST INCOME

81

102

134

142

INTEREST EXPENSE

19,255

22,315

41,118

44,474

LOSS ON RETIREMENT OF DEBT

-

-

5,679

-

OTHER (INCOME) EXPENSE, net

(21)

(30)

45

(70)

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

3,197

(3,853)

(8,527)

(10,477)

PROVISION FOR INCOME TAXES

8,605

4,702

17,183

11,383

Net loss from continuing operations

(5,408)

(8,555)

(25,710)

(21,860)

INCOME FROM DISCONTINUED OPERATIONS, net of tax

-

3

-

893

CONSOLIDATED NET LOSS

(5,408)

(8,552)

(25,710)

(20,967)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

5,408

5,662

10,289

11,353

CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

$                  (10,816)

$                  (14,214)

$                  (35,999)

$                  (32,320)

AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS

NET LOSS FROM CONTINUING OPERATIONS

$                  (10,816)

$                  (14,217)

$                  (35,999)

$                  (33,213)

INCOME FROM DISCONTINUED OPERATIONS, net of tax

-

3

-

893

CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

$                  (10,816)

$                  (14,214)

$                  (35,999)

$                  (32,320)

Weighted average shares outstanding - basic3

47,465,653

48,737,941

47,453,414

49,299,953

Weighted average shares outstanding - diluted4

47,465,653

48,737,941

47,453,414

49,299,953

 

Three Months Ended June 30,

Six Months Ended June 30, 

2014

2013

2014

2013

(as adjusted)2

(as adjusted)2

PER SHARE DATA - basic and diluted:

(unaudited)

(unaudited)

(in thousands, except per share data)

(in thousands, except per share data)

    Net loss from continuing operations (basic)

$                      (0.23)

$                  (0.29)

$                    (0.76)

$                  (0.67)

    Income from discontinued operations, net of tax (basic)

0.00

0.00

0.00

0.02

    Consolidated net loss attributable to common stockholders (basic)

$                      (0.23)

$                  (0.29)

$                    (0.76)

$                  (0.66)

*

    Net loss from continuing operations (diluted)

$                      (0.23)

$                  (0.29)

$                    (0.76)

$                  (0.67)

    Income from discontinued operations, net of tax (diluted)

0.00

0.00

0.00

0.02

    Consolidated net loss attributable to common stockholders (diluted)

$                      (0.23)

$                  (0.29)

$                    (0.76)

$                  (0.66)

*

SELECTED OTHER DATA

Station operating income 1

$                    41,049

$                45,630

$                  76,236

$                81,497

Station operating income margin (% of net revenue)

37.9%

38.2%

34.7%

37.3%

Station operating income reconciliation:

    Consolidated net loss attributable to common stockholders

$                  (10,816)

$              (14,214)

$                (35,999)

$              (32,320)

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

Interest income

(81)

(102)

(134)

(142)

Interest expense

19,255

22,315

41,118

44,474

Provision for income taxes

8,605

4,702

17,183

11,383

Corporate selling, general and administrative expenses

9,398

7,975

19,439

17,423

Stock-based compensation

65

47

110

90

Loss on retirement of debt

-

-

5,679

-

Other (income) expense, net

(21)

(30)

45

(70)

Depreciation and amortization

9,236

9,478

18,506

19,029

Noncontrolling interest in income of subsidiaries

5,408

5,662

10,289

11,353

Impairment of long-lived assets

-

9,800

-

11,170

Income from discontinued operations, net of tax

-

(3)

-

(893)

Station operating income

$                    41,049

$                45,630

$                  76,236

$                81,497

Adjusted EBITDA5

$                    31,651

$                37,655

$                  56,797

$                64,074

Adjusted EBITDA reconciliation:

    Consolidated net loss attributable to common stockholders

$                  (10,816)

$              (14,214)

$                (35,999)

$              (32,320)

Interest income

(81)

(102)

(134)

(142)

Interest expense

19,255

22,315

41,118

44,474

Provision for income taxes

8,605

4,702

17,183

11,383

Depreciation and amortization

9,236

9,478

18,506

19,029

EBITDA

$                    26,199

$                22,179

$                  40,674

$                42,424

Stock-based compensation

65

47

110

90

Loss on retirement of debt

-

-

5,679

-

Other (income) expense, net

(21)

(30)

45

(70)

Noncontrolling interest in income of subsidiaries

5,408

5,662

10,289

11,353

Impairment of long-lived assets

-

9,800

-

11,170

Income from discontinued operations, net of tax

-

(3)

-

(893)

Adjusted EBITDA

$                    31,651

$                37,655

$                  56,797

$                64,074

*Per share amounts do not add due to rounding.

 

June 30, 2014

December 31, 2013

(unaudited) 

(in thousands)

SELECTED BALANCE SHEET DATA:

Cash and cash equivalents

$                    60,019

$                   56,676

Intangible assets, net

1,137,082

1,147,017

Total assets

1,406,276

1,414,355

Total debt (including current portion)

821,389

815,635

Total liabilities

1,144,454

1,117,381

Total equity

250,774

284,975

Redeemable noncontrolling interest

11,048

11,999

Noncontrolling interest

207,538

207,026

Current Amount Outstanding

Applicable Interest Rate

(in thousands)

SELECTED LEVERAGE DATA:

Senior bank term debt, net of original issue discount of approximately $3.1 million (subject to variable rates) (a)

$                  367,389

7.50%

9.25% senior subordinated notes due February 2020 (fixed rate)

335,000

9.25%

10% Senior Secured TV One Notes due March 2016 (fixed rate)

119,000

10.00%

            (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, 10-Q/A, 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 decreased to approximately $108.4 million for the quarter ended June 30, 2014, from approximately $119.6 million for the same period in 2013, a decrease of 9.4%, resulting primarily from a timing difference of Reach Media's annual cruise event. Net revenues from our radio broadcasting segment decreased 5.1% for the quarter ended June 30, 2014, from the same period in 2013. After adjusting for the non-occurrence of the Company's annual Gospel Cruise event (separate from the Reach Media event described below) held during the second quarter of 2013, and not held in 2014, our core radio revenue from our stations decreased 4.1% for the quarter ended June 30, 2014, compared to the same period in 2013. We experienced net revenue growth most significantly in our Charlotte, Columbus, Dallas and Detroit markets, countered by our Atlanta, Houston, Philadelphia and Washington DC markets experiencing the most significant declines. Reach Media's net revenues decreased 43.9% in the second quarter 2014, compared to the same period in 2013, primarily attributable to the timing of the "Tom Joyner Fantastic Voyage" which took place during the second quarter of 2013 versus being held during the first quarter of 2014. The event generated revenue of approximately $7.2 million for Reach Media during the second quarter of 2013. Adjusting for the timing difference for the "Tom Joyner Fantastic Voyage," Reach Media's revenue decreased 6.9% for the quarter ended June 30, 2014, compared to the same period in 2013. We recognized approximately $38.0 million of revenue from our cable television segment during the three months ended June 30, 2014, compared to approximately $37.7 million for the same period in 2013, the increase due primarily from an increase in affiliate sales. Finally, net revenues for our internet business decreased 8.2% for the three months ended June 30, 2014, compared to the same period in 2013.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, decreased to approximately $76.8 million for the quarter ended June 30, 2014, down 6.3% from the approximately $81.9 million incurred for the comparable quarter in 2013. Reach Media's event, the "Tom Joyner Fantastic Voyage," generated expenses of approximately $6.0 million during the second quarter of 2013.

Depreciation and amortization expense decreased 2.6% to approximately $9.2 million compared to approximately $9.5 million for the quarters ended June 30, 2014 and 2013, respectively. The decrease was due to the completion of amortization for certain intangible assets and the completion of useful lives for certain assets. 

Impairment of long-lived assets for the three months ended June 30, 2013, was approximately $9.8 million and related to a non-cash impairment charge recorded to reduce the carrying value of our Cincinnati, Cleveland and Philadelphia radio broadcasting licenses. There was no impairment of long-lived assets for the three months ended June 30, 2014.

Interest expense decreased to approximately $19.3 million for the quarter ended June 30, 2014, compared to approximately $22.3 million for the same period in 2013. As previously announced, on February 10, 2014, the Company closed a private offering of $335.0 million aggregate principal amount of 9.25% Senior Subordinated Notes due 2020 (the "2020 Notes"). The 2020 Notes were offered at an original issue price of 100.0% plus accrued interest from February 10, 2014. Effective March 13, 2014, the Company repurchased or otherwise redeemed all of the amounts outstanding under the 12.5%/15% Senior Subordinated Notes due 2016 (the "2016 Notes"). The primary driver of the decrease in interest expense is due to the lower interest rate associated with the 2020 Notes. The Company made cash interest payments of approximately $10.4 million for the quarter ended June 30, 2014, compared to cash interest payments of approximately $21.0 million for the quarter ended June 30, 2013. Cash interest payments associated with the 2020 Notes will begin August 15, 2014.

The provision for income taxes for the quarter ended June 30, 2014, was approximately $8.6 million compared to approximately $4.7 million for the comparable period in 2013, primarily attributable to the deferred tax liability ("DTL") for indefinite-lived intangible assets. The increase in tax provision is due to the impairment of long-lived intangibles that reduced the DTL and related deferred tax expense for the three months ended June 30, 2013. The Company paid $311,000 and $73,000 in taxes for the quarters ended June 30, 2014 and 2013, respectively.

The decrease in noncontrolling interests in income of subsidiaries is due primarily to a net loss generated by Reach Media during the three months ended June 30, 2014, compared to net income during the 2013 period.  TV One generated greater net income during the three months ended June 30, 2014, compared to the 2013 period, which partially offset the loss generated by Reach Media.

Other pertinent financial information includes capital expenditures of approximately $1.7 million and $3.6 million for the quarters ended June 30, 2014 and 2013, respectively.  The Company received dividends from TV One in the amount of approximately $6.3 million and $4.1 million for the quarters ended June 30, 2014 and 2013, respectively. As of June 30, 2014, the Company had total debt (net of cash balances) of approximately $761.4 million. The Company's cash and cash equivalents by segment are as follows:  Radio and Internet, approximately $33.1 million; Reach Media, approximately $3.0 million; and Cable Television, approximately $23.9 million. In addition to cash and cash equivalents, the cable television segment also has short-term investments of approximately $2.6 million and long-term investments of $806,000. During the three months ended June 30, 2013, the Company repurchased 24,419 shares of Class A common stock in the amount of $57,306 and 1,166,300 shares of Class D common stock in the amount of $2,673,723.  During the six months ended June 30, 2013, the Company repurchased 31,569 shares of Class A common stock in the amount of $68,331 and 2,118,274 shares of Class D common stock in the amount of $4,188,625.  There were no stock repurchases made during the three or six month periods ended June 30, 2014.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three and six months ended June 30, 2014 and 2013 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 June 30, 2014

(in thousands, unaudited)

Corporate/

Radio  

Reach

Cable

Eliminations/

Consolidated

Broadcasting

Media

Internet

Television

Other

STATEMENT OF OPERATIONS:

NET REVENUE

$

108,414

$

55,773

$

10,099

$

5,909

$

37,984

$

(1,351)

OPERATING EXPENSES:

Programming and technical 

33,920

10,905

7,880

2,346

14,220

(1,431)

Selling, general and administrative

33,445

21,871

1,344

3,410

7,367

(547)

Corporate selling, general and administrative

9,398

-

1,119

-

1,822

6,457

Stock-based compensation

65

5

-

-

-

60

Depreciation and amortization

9,236

1,283

286

606

6,532

529

Total operating expenses

86,064

34,064

10,629

6,362

29,941

5,068

           Operating income (loss)

22,350

21,709

(530)

(453)

8,043

(6,419)

INTEREST INCOME

81

-

-

-

15

66

INTEREST EXPENSE

19,255

255

-

-

3,039

15,961

OTHER INCOME, net

(21)

(2)

-

-

-

(19)

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

3,197

21,456

(530)

(453)

5,019

(22,295)

PROVISION FOR INCOME TAXES

8,605

8,596

9

-

-

-

Net (loss) income from continuing operations

(5,408)

12,860

(539)

(453)

5,019

(22,295)

INCOME FROM DISCONTINUED OPERATIONS, net of tax

-

-

-

-

-

-

CONSOLIDATED NET (LOSS) INCOME 

(5,408)

12,860

(539)

(453)

5,019

(22,295)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

5,408

-

-

-

-

5,408

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(10,816)

$

12,860

$

(539)

$

(453)

$

5,019

$

(27,703)

Adjusted EBITDA5

$

31,651

$

22,997

$

(244)

$

153

$

14,575

$

(5,830)

 

 

Three Months Ended June 30, 2013

(in thousands, unaudited, as adjusted)2

Corporate/

Radio  

Reach

Cable

Eliminations/

Consolidated

Broadcasting

Media

Internet

Television

Other

STATEMENT OF OPERATIONS:

NET REVENUE

$

119,602

$

58,759

$

18,015

$

6,434

$

37,729

$

(1,335)

OPERATING EXPENSES:

Programming and technical 

32,952

10,790

7,451

2,050

13,960

(1,299)

Selling, general and administrative

41,020

22,150

7,573

3,877

7,683

(263)

Corporate selling, general and administrative

7,975

-

1,075

-

1,821

5,079

Stock-based compensation

47

9

-

-

-

38

Depreciation and amortization

9,478

1,522

352

605

6,583

416

Impairment of long-lived assets

9,800

9,800

-

-

-

-

Total operating expenses

101,272

44,271

16,451

6,532

30,047

3,971

           Operating income (loss)

18,330

14,488

1,564

(98)

7,682

(5,306)

INTEREST INCOME

102

-

-

-

17

85

INTEREST EXPENSE

22,315

309

-

-

3,039

18,967

OTHER INCOME, net

(30)

-

-

-

-

(30)

(Loss) income before provision for income taxes, noncontrolling interest in income of subsidiaries and income from discontinued operations

(3,853)

14,179

1,564

(98)

4,660

(24,158)

PROVISION FOR INCOME TAXES

4,702

3,904

798

-

-

-

Net (loss) income from continuing operations

(8,555)

10,275

766

(98)

4,660

(24,158)

INCOME FROM DISCONTINUED OPERATIONS, net of tax

3

3

-

-

-

-

CONSOLIDATED NET (LOSS) INCOME 

(8,552)

10,278

766

(98)

4,660

(24,158)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

5,662

-

-

-

-

5,662

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(14,214)

$

10,278

$

766

$

(98)

$

4,660

$

(29,820)

Adjusted EBITDA5

$

37,655

$

25,819

$

1,916

$

507

$

14,265

$

(4,852)

 

 

Six Months Ended June 30, 2014

(in thousands, unaudited)

Corporate/

Radio  

Reach

Cable

Eliminations/

Consolidated

Broadcasting

Media

Internet

Television

Other

STATEMENT OF OPERATIONS:

NET REVENUE

$

219,486

$

105,408

$

26,815

$

12,353

$

77,678

$

(2,768)

OPERATING EXPENSES:

Programming and technical 

69,192

21,573

15,881

4,710

29,747

(2,719)

Selling, general and administrative

74,058

43,132

8,674

7,336

16,104

(1,188)

Corporate selling, general and administrative

19,439

-

2,366

-

3,949

13,124

Stock-based compensation

110

10

-

-

-

100

Depreciation and amortization

18,506

2,591

577

1,232

13,074

1,032

Total operating expenses

181,305

67,306

27,498

13,278

62,874

10,349

           Operating income (loss) 

38,181

38,102

(683)

(925)

14,804

(13,117)

INTEREST INCOME

134

-

-

-

27

107

INTEREST EXPENSE

41,118

605

-

-

6,078

34,435

LOSS ON RETIREMENT OF DEBT

5,679

-

-

-

-

5,679

OTHER EXPENSE (INCOME), net

45

(1)

-

-

96

(50)

(Loss) income before provision for income taxes, noncontrolling interest in income of subsidiaries and income (loss) from discontinued operations

(8,527)

37,498

(683)

(925)

8,657

(53,074)

PROVISION FOR INCOME TAXES

17,183

17,160

23

-

-

-

Net (loss) income from continuing operations

(25,710)

20,338

(706)

(925)

8,657

(53,074)

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax

-

-

-

-

-

-

CONSOLIDATED NET (LOSS) INCOME

(25,710)

20,338

(706)

(925)

8,657

(53,074)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

10,289

-

-

-

-

10,289

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(35,999)

$

20,338

$

(706)

$

(925)

$

8,657

$

(63,363)

Adjusted EBITDA5

$

56,797

$

40,703

$

(106)

$

307

$

27,878

$

(11,985)

 

 

Six Months Ended June 30, 2013

(in thousands, unaudited, as adjusted)2

Corporate/

Radio  

Reach

Cable

Eliminations/

Consolidated

Broadcasting

Media

Internet

Television

Other

STATEMENT OF OPERATIONS:

NET REVENUE

$

218,714

$

108,616

$

27,556

$

11,486

$

73,721

$

(2,665)

OPERATING EXPENSES:

Programming and technical 

63,473

21,744

14,915

3,982

25,333

(2,501)

Selling, general and administrative

73,744

42,864

9,317

7,498

14,667

(602)

Corporate selling, general and administrative

17,423

-

2,214

-

4,230

10,979

Stock-based compensation

90

24

-

-

-

66

Depreciation and amortization

19,029

3,076

640

1,314

13,217

782

Impairment of long-lived assets

11,170

11,170

-

-

-

-

Total operating expenses

184,929

78,878

27,086

12,794

57,447

8,724

           Operating income (loss) 

33,785

29,738

470

(1,308)

16,274

(11,389)

INTEREST INCOME

142

-

-

-

27

115

INTEREST EXPENSE

44,474

585

-

-

6,078

37,811

OTHER INCOME,  net

(70)

(11)

-

-

-

(59)

(Loss) income before provision for income taxes, noncontrolling interest in income of subsidiaries and loss from discontinued operations

(10,477)

29,164

470

(1,308)

10,223

(49,026)

PROVISION FOR INCOME TAXES

11,383

10,911

472

-

-

-

Net (loss) income from continuing operations

(21,860)

18,253

(2)

(1,308)

10,223

(49,026)

INCOME FROM DISCONTINUED OPERATIONS, net of tax

893

893

-

-

-

-

CONSOLIDATED NET (LOSS) INCOME

(20,967)

19,146

(2)

(1,308)

10,223

(49,026)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

11,353

-

-

-

-

11,353

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(32,320)

$

19,146

$

(2)

$

(1,308)

$

10,223

$

(60,379)

Adjusted EBITDA5

$

64,074

$

44,008

$

1,110

$

6

$

29,491

$

(10,541)

 

Radio One, Inc. will hold a conference call to discuss its results for second fiscal quarter of 2014. This conference call is scheduled for Tuesday, August 5, 2014 at 10:00 a.m. Eastern Daylight Time. To participate on this call, U.S. callers may dial toll-free 1-800-230-1092; international callers may dial direct (+1) 612-288-0337.

A replay of the conference call will be available from 12:00 p.m. EDT August 5, 2014 until 11:59 p.m. EDT August 7, 2014. 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 330905. 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., together with its subsidiaries (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 and/or operating 54 broadcast stations located in 16 urban markets in the United States. Through its controlling interest in Reach Media, Inc. (http://www.blackamericaweb.com/), the Company also operates syndicated programming including the Tom Joyner Morning Show, the Rickey Smiley Morning Show, the Yolanda Adams Morning Show, the Russ Parr 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 (http://www.interactiveone.com/), an online platform serving the African-American community through social content, news, information, and entertainment. Interactive One operates a number of branded sites, including News One, UrbanDaily, HelloBeautiful and social networking websites, including BlackPlanet and MiGente. 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 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              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." 

3              For the three months ended June 30, 2014 and 2013, Radio One had 47,465,653 and 48,737,941 shares of common stock outstanding on a weighted average basis (basic), respectively.  For the six months ended June 30, 2014 and 2013, Radio One had 47,453,414 and 49,299,953 shares of common stock outstanding on a weighted average basis (basic), respectively. 

4              For the three months ended June 30, 2014 and 2013, Radio One had 47,465,653 and 48,737,941 shares of common stock outstanding on a weighted average basis (fully diluted), for outstanding stock options, respectively.  For the six months ended June 30, 2014 and 2013, Radio One had 47,453,414 and 49,299,953 shares of common stock outstanding on a weighted average basis (fully diluted), for outstanding stock options, respectively.

5              "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. 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, 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 as 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. 

Logo - http://photos.prnewswire.com/prnh/20090806/PH57529LOGO

SOURCE Radio One, Inc.



RELATED LINKS

http://www.radio-one.com