WASHINGTON, Aug. 4, 2016 /PRNewswire/ -- Radio One, Inc.
(NASDAQ: ROIAK and ROIA) today reported its results for the quarter
ended June 30, 2016. Net
revenue was approximately $122.7
million, an increase of 2.4% from the same period in 2015.
Station operating income1 was approximately $48.9 million, an increase of 5.5% from the same
period in 2015. The Company reported operating income of
approximately $27.7 million for the
three months ended June 30, 2016,
compared to operating income of $24.8
million for the same period in 2015. Net income was
approximately $7.3 million or
$0.15 per share (basic) compared to a
net loss of $13.0 million or
$0.27 per share (basic) for the same
period in 2015.
Alfred C. Liggins, III, Radio
One's CEO and President stated, "I was pleased that our core radio
advertising was positive at +1.4% for the quarter, and that we
outperformed our markets overall. Disciplined cost management
allowed us to grow our radio division cash flow, with Adjusted
EBITDA up 10% for the quarter. We improved Adjusted EBITDA for each
of our operating segments in Q2, leading to an overall increase of
9.6%. Our cable television advertising revenues in Q2 were impacted
by some under-delivery against ratings estimates, however,
sequential Q3 delivery is significantly improved, currently up by
9.5% in the primetime 25-54 demo, and our overall EBITDA guidance
for the year still holds. During the quarter, we repurchased
$20 million of our 2020 notes at an
average price of 85.9, which both reduces our ongoing interest
burden and helps move us towards our long term goal of lower
leverage."
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited, as
reclassified2)
|
|
(unaudited)
|
|
(unaudited, as
reclassified2)
|
|
|
(in thousands, except
share data)
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
122,719
|
|
$
119,821
|
|
$
231,807
|
|
$
225,584
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
30,693
|
|
31,425
|
|
64,696
|
|
65,882
|
|
Selling, general and
administrative, excluding stock-based compensation
|
43,092
|
|
42,002
|
|
78,541
|
|
77,017
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
11,878
|
|
11,429
|
|
23,252
|
|
21,458
|
|
Stock-based
compensation
|
765
|
|
1,198
|
|
1,537
|
|
2,779
|
|
Depreciation and
amortization
|
8,572
|
|
8,980
|
|
17,254
|
|
18,068
|
|
Total operating
expenses
|
95,000
|
|
95,034
|
|
185,280
|
|
185,204
|
|
Operating income
|
27,719
|
|
24,787
|
|
46,527
|
|
40,380
|
|
INTEREST
INCOME
|
55
|
|
28
|
|
123
|
|
35
|
|
INTEREST
EXPENSE
|
20,531
|
|
20,019
|
|
41,169
|
|
39,264
|
|
GAIN (LOSS) ON
RETIREMENT OF DEBT
|
2,646
|
|
(7,091)
|
|
2,646
|
|
(7,091)
|
|
OTHER (INCOME)
EXPENSE, net
|
(43)
|
|
437
|
|
(54)
|
|
285
|
|
Income
(loss) before provision for income taxes and
noncontrolling
interest in income of subsidiaries
|
9,932
|
|
(2,732)
|
|
8,181
|
|
(6,225)
|
|
PROVISION FOR INCOME
TAXES
|
2,183
|
|
9,942
|
|
3,958
|
|
18,472
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
7,749
|
|
(12,674)
|
|
4,223
|
|
(24,697)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
435
|
|
365
|
|
856
|
|
6,831
|
|
CONSOLIDATED NET
INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS
|
$
7,314
|
|
$
(13,039)
|
|
$
3,367
|
|
$
(31,528)
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
|
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS
|
$
7,314
|
|
$
(13,039)
|
|
$
3,367
|
|
$
(31,528)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic3
|
48,110,440
|
|
48,062,991
|
|
48,387,482
|
|
47,840,082
|
|
Weighted average
shares outstanding - diluted4
|
49,279,142
|
|
48,062,991
|
|
49,561,381
|
|
47,840,082
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
PER SHARE DATA -
basic and diluted:
|
(unaudited)
|
|
(unaudited, as
reclassified2)
|
|
(unaudited)
|
|
(unaudited, as
reclassified2)
|
|
(in thousands, except
per share data)
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
Consolidated net income (loss) attributable to common stockholders
(basic)
|
$
0.15
|
|
$
(0.27)
|
|
$
0.07
|
|
$
(0.66)
|
|
|
|
|
|
|
|
|
Consolidated net income (loss) attributable to common stockholders
(diluted)
|
$
0.15
|
|
$
(0.27)
|
|
$
0.07
|
|
$
(0.66)
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
Station operating income
1
|
$
48,934
|
|
$
46,394
|
|
$
88,570
|
|
$
82,685
|
Station operating income
margin (% of net revenue)
|
39.9%
|
|
38.7%
|
|
38.2%
|
|
36.7%
|
|
|
|
|
|
|
|
|
Station operating
income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net
income (loss) attributable to common stockholders
|
$
7,314
|
|
$
(13,039)
|
|
$
3,367
|
|
$
(31,528)
|
Add back non-station
operating income items included in consolidated net income
(loss):
|
|
|
|
|
|
|
|
Interest
income
|
(55)
|
|
(28)
|
|
(123)
|
|
(35)
|
Interest
expense
|
20,531
|
|
20,019
|
|
41,169
|
|
39,264
|
Provision for income
taxes
|
2,183
|
|
9,942
|
|
3,958
|
|
18,472
|
Corporate selling,
general and administrative expenses
|
11,878
|
|
11,429
|
|
23,252
|
|
21,458
|
Stock-based
compensation
|
765
|
|
1,198
|
|
1,537
|
|
2,779
|
(Gain) loss on
retirement of debt
|
(2,646)
|
|
7,091
|
|
(2,646)
|
|
7,091
|
Other (income) expense,
net
|
(43)
|
|
437
|
|
(54)
|
|
285
|
Depreciation and
amortization
|
8,572
|
|
8,980
|
|
17,254
|
|
18,068
|
Noncontrolling interest
in income of subsidiaries
|
435
|
|
365
|
|
856
|
|
6,831
|
Station operating
income
|
$
48,934
|
|
$
46,394
|
|
$
88,570
|
|
$
82,685
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
39,933
|
|
$
36,429
|
|
$
70,666
|
|
$
63,534
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
net income (loss) attributable to common stockholders:
|
$
7,314
|
|
$
(13,039)
|
|
$
3,367
|
|
$
(31,528)
|
Interest
income
|
(55)
|
|
(28)
|
|
(123)
|
|
(35)
|
Interest
expense
|
20,531
|
|
20,019
|
|
41,169
|
|
39,264
|
Provision for income
taxes
|
2,183
|
|
9,942
|
|
3,958
|
|
18,472
|
Depreciation and
amortization
|
8,572
|
|
8,980
|
|
17,254
|
|
18,068
|
EBITDA
|
$
38,545
|
|
$
25,874
|
|
$
65,625
|
|
$
44,241
|
Stock-based
compensation
|
765
|
|
1,198
|
|
1,537
|
|
2,779
|
(Gain) loss on
retirement of debt
|
(2,646)
|
|
7,091
|
|
(2,646)
|
|
7,091
|
Other (income) expense,
net
|
(43)
|
|
437
|
|
(54)
|
|
285
|
Noncontrolling interest
in income of subsidiaries
|
435
|
|
365
|
|
856
|
|
6,831
|
Employment Agreement
Award and incentive plan award expenses
|
2,536
|
|
1,094
|
|
4,775
|
|
1,462
|
Severance-related
costs*
|
341
|
|
370
|
|
573
|
|
845
|
Adjusted
EBITDA
|
$
39,933
|
|
$
36,429
|
|
$
70,666
|
|
$
63,534
|
|
|
|
|
|
|
|
|
*The Company has
modified the definition of Adjusted EBITDA for the inclusion of
severance-related costs.
|
|
|
|
|
|
|
All prior periods
have been reclassified to conform to the current period
presentation.
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
(unaudited)
|
|
|
|
|
(in
thousands)
|
SELECTED BALANCE
SHEET DATA:
|
|
|
Cash and cash
equivalents
|
$
54,131
|
|
$
67,376
|
|
Intangible assets,
net
|
1,032,172
|
|
1,042,956
|
|
Total
assets
|
1,350,645
|
|
1,346,524
|
|
Total debt (including
current portion, net of original issue discount and issuance
costs)
|
1,005,349
|
|
1,024,337
|
|
Total
liabilities
|
1,403,605
|
|
1,407,062
|
|
Total
deficit
|
(65,391)
|
|
(71,824)
|
|
Redeemable
noncontrolling interest
|
12,431
|
|
11,286
|
|
|
|
|
|
|
|
Current Amount
Outstanding
|
|
Applicable Interest
Rate
|
|
(in
thousands)
|
|
|
SELECTED LEVERAGE
DATA:
|
|
|
2015 Credit Facility,
net of original issue discount and issuance costs of
approximately
$10.1 million (subject to variable rates) (a)
|
$
336,428
|
|
5.14%
|
|
9.25% senior
subordinated notes due February 2020, net of original issue
discount and
issuance costs of approximately $2.6 million (fixed
rate)
|
312,364
|
|
9.25%
|
|
7.375% senior secured
notes due April 2022, net of original issue discount and
issuance
costs of approximately $5.3 million (fixed rate)
|
344,685
|
|
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
June 30,
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
$
Change
|
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
56,068
|
|
$
|
55,298
|
|
$
|
770
|
|
|
1.4%
|
|
Political
Advertising
|
|
|
852
|
|
|
449
|
|
|
403
|
|
|
89.8%
|
|
Digital
Advertising
|
|
|
6,027
|
|
|
5,811
|
|
|
216
|
|
|
3.7%
|
|
Cable Television
Advertising
|
|
|
20,170
|
|
|
20,608
|
|
|
(438)
|
|
|
-2.1%
|
|
Cable Television
Affiliate Fees
|
|
|
27,403
|
|
|
24,975
|
|
|
2,428
|
|
|
9.7%
|
|
Event Revenues &
Other
|
|
|
12,199
|
|
|
12,680
|
|
|
(481)
|
|
|
-3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
122,719
|
|
$
|
119,821
|
|
$
|
2,898
|
|
|
2.4%
|
|
Net revenue increased to approximately $122.7 million for the quarter ended June 30, 2016, from approximately $119.8 million for the same period in 2015, an
increase of 2.4%. Net revenues from our radio broadcasting segment
decreased 0.2% for the quarter ended June
30, 2016, versus the same period in 2015. We experienced net
revenue growth in eight of our radio markets (most significantly in
Washington D.C., Charlotte and
Cleveland); however, this growth
was offset by declines in other markets (with Columbus, Philadelphia, Houston and Detroit experiencing the most significant
declines). Reach Media's net revenues increased 2.8% in the second
quarter of 2016, compared to the same period in 2015. The
"Tom Joyner Fantastic Voyage" took place during the second quarters
of 2016 and 2015 and generated revenue of approximately
$8.8 million and $8.7 million, respectively, for Reach Media. We
recognized approximately $47.6
million of revenue from our cable television segment during
the three months ended June 30, 2016,
compared to approximately $45.6
million for the same period in 2015, the increase due
primarily from an increase in affiliate sales. Finally, net
revenues for our internet business increased 7.9% for the three
months ended June 30, 2016, compared
to the same period in 2015 due to higher direct revenue.
Operating expenses, excluding depreciation and amortization,
stock-based compensation and impairment of long-lived assets,
increased to approximately $85.7
million for the quarter ended June
30, 2016, up 1.0% from the approximately $84.9 million incurred for the comparable quarter
in 2015.
Depreciation and amortization expense decreased to approximately
$8.6 million compared to
approximately $9.0 million for the
quarters ended June 30, 2016 and
2015, respectively, a decrease of 4.5%. The decrease was due to
certain assets reaching the end of their useful lives.
Interest expense increased to approximately $20.5 million for the quarter ended June 30, 2016, compared to approximately
$20.0 million for the same period in
2015. On April 17, 2015, the
Company's 2011 Credit Agreement, 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 $18.6
million on its outstanding debt for the quarter ended
June 30, 2016, compared to cash
interest payments of approximately $2.6
million on the 2011 Credit Agreement and the notes that were
outstanding with respect to the TV One debt for the quarter ended
June 30, 2015. Thus, the
increased interest expense and cash payments were made due to
higher debt balances.
The gain on retirement of debt of approximately $2.6 million for the quarter ended June 30, 2016 was due to the redemption of
approximately $20 million of our 2020
Notes at a discount. The loss on retirement of debt of
approximately $7.1 million for the
quarter ended June 30, 2015 was due
to the retirement of the 2011 Credit Facility and payoff of the TV
One Notes during the second quarter of 2015. This amount included a
write-off of approximately $1.3
million of previously capitalized debt financing costs, a
write-off of $844,000 of original
issue discount associated with the 2011 Credit Agreement, as well
as $827,000 associated with the call
premium to refinance the credit facility, $106,000 associated with the consent to the
existing holders of the 2020 Notes and approximately $4.0 million of costs associated with the
financing transactions.
The provision for income taxes for the quarter ended
June 30, 2016 was approximately
$2.2 million and $9.9 million for the comparable period in 2015,
with the change primarily attributable to the deferred tax
liability ("DTL") for indefinite-lived intangible assets. The
change in taxes was primarily due to the completion of tax
amortization from previously acquired indefinite-lived intangible
assets. The Company paid $352,000 and
$276,000 in taxes for the quarters
ended June 30, 2016 and 2015,
respectively.
The increase in noncontrolling interests in income of
subsidiaries was due to greater net income generated by Reach
Media.
Other pertinent financial information includes capital
expenditures of approximately $1.1
million and $1.6 million for
the quarters ended June 30, 2016 and
2015, respectively. As of June 30,
2016, the Company had total debt (net of cash balances and
original issue discount) of approximately $951.2 million. During the three months ended
June 30, 2016, the Company
repurchased 575,608 shares of Class D common stock in the aggregate
amount of approximately $1.1
million. During the six months ended June 30, 2016, the Company repurchased 636,174
shares of Class D common stock in the aggregate amount of
approximately $1.2 million. The
Company, in connection with 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. During the six months ended June
30, 2016, the Company repurchased 330,111 shares of Class D
common stock, to satisfy employee tax obligations, in the amount of
$568,000. During the three and
six months ended June 30, 2015, the
Company repurchased 345,293 shares of Class D common stock, to
satisfy employee tax obligations, in the amount of approximately
$1.4 million.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three and six months ended
June 30, 2016 and 2015 are included.
These detailed, unaudited and adjusted statements of
operations include certain reclassifications. 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, 2016
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
122,719
|
$
|
53,135
|
$
|
18,829
|
$
|
4,874
|
$
|
47,553
|
$
|
(1,672)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
30,693
|
|
10,074
|
|
5,789
|
|
1,877
|
|
14,151
|
|
(1,198)
|
|
Selling, general and
administrative
|
|
43,092
|
|
21,336
|
|
9,681
|
|
3,237
|
|
9,311
|
|
(473)
|
|
Corporate selling,
general and administrative
|
|
11,878
|
|
-
|
|
1,129
|
|
-
|
|
2,854
|
|
7,895
|
|
Stock-based
compensation
|
|
765
|
|
55
|
|
10
|
|
4
|
|
-
|
|
696
|
|
Depreciation and
amortization
|
|
8,572
|
|
1,077
|
|
47
|
|
438
|
|
6,552
|
|
458
|
|
Total operating
expenses
|
|
95,000
|
|
32,542
|
|
16,656
|
|
5,556
|
|
32,868
|
|
7,378
|
|
Operating income (loss)
|
|
27,719
|
|
20,593
|
|
2,173
|
|
(682)
|
|
14,685
|
|
(9,050)
|
|
INTEREST
INCOME
|
|
55
|
|
-
|
|
-
|
|
-
|
|
-
|
|
55
|
|
INTEREST
EXPENSE
|
|
20,531
|
|
330
|
|
-
|
|
-
|
|
1,919
|
|
18,282
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
2,646
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,646
|
|
OTHER INCOME,
net
|
|
(43)
|
|
(5)
|
|
-
|
|
-
|
|
-
|
|
(38)
|
|
Income (loss) before
provision for income taxes and noncontrolling
interest in income of subsidiaries
|
|
9,932
|
|
20,268
|
|
2,173
|
|
(682)
|
|
12,766
|
|
(24,593)
|
|
PROVISION FOR INCOME
TAXES
|
|
2,183
|
|
2,116
|
|
37
|
|
20
|
|
10
|
|
-
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
7,749
|
|
18,152
|
|
2,136
|
|
(702)
|
|
12,756
|
|
(24,593)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
435
|
|
-
|
|
-
|
|
-
|
|
-
|
|
435
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
7,314
|
$
|
18,152
|
$
|
2,136
|
$
|
(702)
|
$
|
12,756
|
$
|
(25,028)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
39,933
|
$
|
22,017
|
$
|
2,271
|
$
|
(238)
|
$
|
21,236
|
$
|
(5,353)
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
119,821
|
$
|
53,243
|
$
|
18,315
|
$
|
4,516
|
$
|
45,594
|
$
|
(1,847)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
31,425
|
|
10,270
|
|
5,621
|
|
1,996
|
|
14,732
|
|
(1,194)
|
|
Selling, general and
administrative
|
|
42,002
|
|
23,211
|
|
9,519
|
|
3,192
|
|
7,352
|
|
(1,272)
|
|
Corporate selling,
general and administrative
|
|
11,429
|
|
-
|
|
1,138
|
|
-
|
|
3,488
|
|
6,803
|
|
Stock-based
compensation
|
|
1,198
|
|
32
|
|
-
|
|
17
|
|
-
|
|
1,149
|
|
Depreciation and
amortization
|
|
8,980
|
|
1,169
|
|
268
|
|
473
|
|
6,542
|
|
528
|
|
Total operating
expenses
|
|
95,034
|
|
34,682
|
|
16,546
|
|
5,678
|
|
32,114
|
|
6,014
|
|
Operating income (loss)
|
|
24,787
|
|
18,561
|
|
1,769
|
|
(1,162)
|
|
13,480
|
|
(7,861)
|
|
INTEREST
INCOME
|
|
28
|
|
-
|
|
-
|
|
-
|
|
(11)
|
|
39
|
|
INTEREST
EXPENSE
|
|
20,019
|
|
305
|
|
-
|
|
-
|
|
2,254
|
|
17,460
|
|
LOSS ON RETIREMENT OF
DEBT
|
|
(7,091)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7,091)
|
|
OTHER EXPENSE,
net
|
|
437
|
|
27
|
|
-
|
|
-
|
|
92
|
|
318
|
|
(Loss) income before
provision for income taxes and noncontrolling
interest in income of subsidiaries
|
|
(2,732)
|
|
18,229
|
|
1,769
|
|
(1,162)
|
|
11,123
|
|
(32,691)
|
|
PROVISION FOR INCOME
TAXES
|
|
9,942
|
|
9,912
|
|
30
|
|
-
|
|
-
|
|
-
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(12,674)
|
|
8,317
|
|
1,739
|
|
(1,162)
|
|
11,123
|
|
(32,691)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
365
|
|
-
|
|
-
|
|
-
|
|
-
|
|
365
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(13,039)
|
$
|
8,317
|
$
|
1,739
|
$
|
(1,162)
|
$
|
11,123
|
$
|
(33,056)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
36,429
|
$
|
20,015
|
$
|
2,037
|
$
|
(654)
|
$
|
20,121
|
$
|
(5,090)
|
|
|
|
|
|
Six Months Ended June
30, 2016
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
231,807
|
$
|
97,894
|
$
|
29,798
|
$
|
10,294
|
$
|
97,036
|
$
|
(3,215)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
64,696
|
|
19,969
|
|
11,578
|
|
3,695
|
|
31,732
|
|
(2,278)
|
|
Selling, general and
administrative
|
|
78,541
|
|
40,887
|
|
11,718
|
|
6,630
|
|
20,243
|
|
(937)
|
|
Corporate selling,
general and administrative
|
|
23,252
|
|
-
|
|
2,076
|
|
-
|
|
5,316
|
|
15,860
|
|
Stock-based
compensation
|
|
1,537
|
|
139
|
|
21
|
|
6
|
|
-
|
|
1,371
|
|
Depreciation and
amortization
|
|
17,254
|
|
2,221
|
|
89
|
|
881
|
|
13,105
|
|
958
|
|
Total operating
expenses
|
|
185,280
|
|
63,216
|
|
25,482
|
|
11,212
|
|
70,396
|
|
14,974
|
|
Operating income (loss)
|
|
46,527
|
|
34,678
|
|
4,316
|
|
(918)
|
|
26,640
|
|
(18,189)
|
|
INTEREST
INCOME
|
|
123
|
|
-
|
|
-
|
|
-
|
|
-
|
|
123
|
|
INTEREST
EXPENSE
|
|
41,169
|
|
671
|
|
-
|
|
-
|
|
3,838
|
|
36,660
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
2,646
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,646
|
|
OTHER INCOME,
net
|
|
(54)
|
|
(5)
|
|
-
|
|
-
|
|
-
|
|
(49)
|
|
Income (loss) before
provision for income taxes and noncontrolling
interest in income of subsidiaries
|
|
8,181
|
|
34,012
|
|
4,316
|
|
(918)
|
|
22,802
|
|
(52,031)
|
|
PROVISION FOR INCOME
TAXES
|
|
3,958
|
|
3,845
|
|
74
|
|
20
|
|
19
|
|
-
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
4,223
|
|
30,167
|
|
4,242
|
|
(938)
|
|
22,783
|
|
(52,031)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
856
|
|
-
|
|
-
|
|
-
|
|
-
|
|
856
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
3,367
|
$
|
30,167
|
$
|
4,242
|
$
|
(938)
|
$
|
22,783
|
$
|
(52,887)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
70,666
|
$
|
37,510
|
$
|
4,488
|
$
|
(22)
|
$
|
39,741
|
$
|
(11,051)
|
|
|
|
|
|
Six Months Ended June
30, 2015
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
225,584
|
$
|
98,212
|
$
|
29,022
|
$
|
10,260
|
$
|
91,327
|
$
|
(3,237)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
65,882
|
|
20,446
|
|
11,271
|
|
4,299
|
|
32,181
|
|
(2,315)
|
|
Selling, general and
administrative
|
|
77,017
|
|
44,463
|
|
11,392
|
|
6,578
|
|
16,745
|
|
(2,161)
|
|
Corporate selling,
general and administrative
|
|
21,458
|
|
-
|
|
2,317
|
|
-
|
|
6,435
|
|
12,706
|
|
Stock-based
compensation
|
|
2,779
|
|
139
|
|
-
|
|
38
|
|
-
|
|
2,602
|
|
Depreciation and
amortization
|
|
18,068
|
|
2,325
|
|
532
|
|
1,112
|
|
13,046
|
|
1,053
|
|
Total operating
expenses
|
|
185,204
|
|
67,373
|
|
25,512
|
|
12,027
|
|
68,407
|
|
11,885
|
|
Operating income (loss)
|
|
40,380
|
|
30,839
|
|
3,510
|
|
(1,767)
|
|
22,920
|
|
(15,122)
|
|
INTEREST
INCOME
|
|
35
|
|
-
|
|
-
|
|
-
|
|
(93)
|
|
128
|
|
INTEREST
EXPENSE
|
|
39,264
|
|
610
|
|
-
|
|
-
|
|
5,293
|
|
33,361
|
|
LOSS ON RETIREMENT OF
DEBT
|
|
(7,091)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7,091)
|
|
OTHER EXPENSE,
net
|
|
285
|
|
55
|
|
-
|
|
-
|
|
92
|
|
138
|
|
(Loss) income before
provision for income taxes and noncontrolling
interest in income of subsidiaries
|
|
(6,225)
|
|
30,174
|
|
3,510
|
|
(1,767)
|
|
17,442
|
|
(55,584)
|
|
PROVISION FOR INCOME
TAXES
|
|
18,472
|
|
18,411
|
|
61
|
|
-
|
|
-
|
|
-
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(24,697)
|
|
11,763
|
|
3,449
|
|
(1,767)
|
|
17,442
|
|
(55,584)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
6,831
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,831
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(31,528)
|
$
|
11,763
|
$
|
3,449
|
$
|
(1,767)
|
$
|
17,442
|
$
|
(62,415)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
63,534
|
$
|
33,963
|
$
|
4,046
|
$
|
(581)
|
$
|
36,103
|
$
|
(9,997)
|
Radio One, Inc. will hold a conference call to discuss its
results for second fiscal quarter of 2016. The conference call is
scheduled for Thursday, August 04,
2016 at 10:00 a.m. EDT. To participate on this call, U.S.
callers may dial toll-free 1-800-230-1085; international callers
may dial direct (+1) 612-332-0107.
A replay of the conference call will be available
from 12:00 p.m. EDT August 04, 2016 until 11:59
p.m. EDT August 06, 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 397824. 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 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 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
Certain reclassifications have been made to prior year balances to
conform to the current year 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
Reclassified."
3
For the three months ended June 30,
2016 and 2015, Radio One had 48,110,440 and 48,062,991
shares of common stock outstanding on a weighted average basis
(basic), respectively. For the six months ended June 30, 2016 and 2015, Radio One had 48,387,482
and 47,840,082 shares of common stock outstanding on a weighted
average basis (basic), respectively.
4
For the three months ended June 30,
2016 and 2015, Radio One had 49,279,142 and 48,062,991
shares of common stock outstanding on a weighted average basis
(fully diluted for outstanding stock options), respectively.
For the six months ended June 30,
2016 and 2015, Radio One had 49,561,381 and 47,840,082
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,
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.