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."
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RESULTS OF
OPERATIONS
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Three Months Ended
June 30,
|
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Six Months Ended June
30,
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2014
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2013
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2014
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2013
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(as
adjusted)2
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(as
adjusted)2
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STATEMENT OF
OPERATIONS
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(unaudited)
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(unaudited)
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(in thousands, except
share data)
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(in thousands, except
share data)
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NET
REVENUE
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$
108,414
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$
119,602
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$
219,486
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$
218,714
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OPERATING
EXPENSES
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|
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Programming and
technical, excluding stock-based compensation
|
33,920
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32,952
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69,192
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63,473
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Selling, general and
administrative, excluding stock-based compensation
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33,445
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41,020
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74,058
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|
73,744
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Corporate selling,
general and administrative, excluding stock-based
compensation
|
9,398
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7,975
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|
19,439
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|
17,423
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Stock-based
compensation
|
65
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|
47
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110
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|
90
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Depreciation and
amortization
|
9,236
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9,478
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|
18,506
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|
19,029
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Impairment of
long-lived assets
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-
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|
9,800
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-
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|
11,170
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Total operating
expenses
|
86,064
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|
101,272
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|
181,305
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184,929
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Operating income
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22,350
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|
18,330
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38,181
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33,785
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INTEREST
INCOME
|
81
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|
102
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|
134
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|
142
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INTEREST
EXPENSE
|
19,255
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22,315
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41,118
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44,474
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LOSS ON RETIREMENT OF
DEBT
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-
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-
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5,679
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-
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OTHER (INCOME)
EXPENSE, net
|
(21)
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(30)
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45
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(70)
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Income (loss) before
provision for income taxes, noncontrolling interest in income of
subsidiaries and income from discontinued operations
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3,197
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(3,853)
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(8,527)
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(10,477)
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PROVISION FOR INCOME
TAXES
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8,605
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4,702
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17,183
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11,383
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Net loss from
continuing operations
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(5,408)
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(8,555)
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(25,710)
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(21,860)
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INCOME FROM
DISCONTINUED OPERATIONS, net of tax
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-
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3
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-
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893
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CONSOLIDATED NET
LOSS
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(5,408)
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(8,552)
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(25,710)
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(20,967)
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NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
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5,408
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5,662
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10,289
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11,353
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CONSOLIDATED NET LOSS
ATTRIBUTABLE TO COMMON STOCKHOLDERS
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$
(10,816)
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$
(14,214)
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$
(35,999)
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$
(32,320)
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AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
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NET LOSS FROM
CONTINUING OPERATIONS
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$
(10,816)
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$
(14,217)
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$
(35,999)
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$
(33,213)
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INCOME FROM
DISCONTINUED OPERATIONS, net of tax
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-
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|
3
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-
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|
893
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CONSOLIDATED NET LOSS
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(10,816)
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|
$
(14,214)
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|
$
(35,999)
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$
(32,320)
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Weighted average
shares outstanding - basic3
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47,465,653
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48,737,941
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47,453,414
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49,299,953
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Weighted average
shares outstanding - diluted4
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47,465,653
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48,737,941
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47,453,414
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49,299,953
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Three Months Ended
June 30,
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Six Months Ended June
30,
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2014
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2013
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2014
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2013
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(as
adjusted)2
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(as
adjusted)2
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PER SHARE DATA -
basic and diluted:
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(unaudited)
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(unaudited)
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(in thousands, except
per share data)
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(in thousands, except
per share data)
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Net loss from continuing operations (basic)
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$
(0.23)
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$
(0.29)
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$
(0.76)
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$
(0.67)
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Income from discontinued operations, net of tax (basic)
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0.00
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0.00
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0.00
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|
0.02
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Consolidated net loss attributable to common stockholders
(basic)
|
$
(0.23)
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|
$
(0.29)
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|
$
(0.76)
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$
(0.66)
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*
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Net loss from continuing operations (diluted)
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$
(0.23)
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$
(0.29)
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$
(0.76)
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$
(0.67)
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Income from discontinued operations, net of tax
(diluted)
|
0.00
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|
0.00
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|
0.00
|
|
0.02
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Consolidated net loss attributable to common stockholders
(diluted)
|
$
(0.23)
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|
$
(0.29)
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|
$
(0.76)
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$
(0.66)
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*
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SELECTED OTHER
DATA
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Station operating
income 1
|
$
41,049
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|
$
45,630
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|
$
76,236
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|
$
81,497
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Station operating
income margin (% of net revenue)
|
37.9%
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|
38.2%
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|
34.7%
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|
37.3%
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Station operating
income reconciliation:
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Consolidated net loss attributable to common
stockholders
|
$
(10,816)
|
|
$
(14,214)
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|
$
(35,999)
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|
$
(32,320)
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Add back non-station operating income items included in
consolidated net loss:
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|
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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
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|
18,506
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|
19,029
|
|
Noncontrolling
interest in income of subsidiaries
|
5,408
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|
5,662
|
|
10,289
|
|
11,353
|
|
Impairment of
long-lived assets
|
-
|
|
9,800
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|
-
|
|
11,170
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|
Income from
discontinued operations, net of tax
|
-
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|
(3)
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|
-
|
|
(893)
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|
Station operating
income
|
$
41,049
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|
$
45,630
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|
$
76,236
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|
$
81,497
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|
|
|
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|
|
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|
Adjusted
EBITDA5
|
$
31,651
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|
$
37,655
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|
$
56,797
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|
$
64,074
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|
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Adjusted EBITDA
reconciliation:
|
|
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|
|
|
|
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|
|
|
|
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|
|
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)
|
|
|
|
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(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.
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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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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.
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SOURCE Radio One, Inc.