WASHINGTON, May 4, 2017 /PRNewswire/ -- Radio One, Inc.
(NASDAQ: ROIAK and ROIA) today reported its results for the quarter
ended March 31, 2017. Net
revenue was approximately $101.3
million, a decrease of 7.1% from the same period in 2016.
Broadcast and digital operating income1 was
approximately $34.9 million, a
decrease of 11.9% from the same period in 2016. The Company
reported operating income of approximately $16.5 million for the three months ended
March 31, 2017, compared to
$18.8 million for the same period in
2016. Net loss was approximately $2.3
million or $0.05 per share
(basic) compared to approximately $3.9
million or $0.08 per share
(basic) for the same period in 2016.
Alfred C. Liggins, III, Radio
One's CEO and President stated, "A combination of tough political
comps in radio, and non-recurring major client spending at Reach
Media, made for a weak start to the year in radio advertising. TV
One ratings held up well overall (+4% Household, and flat 24-54
total day), although we were down in the younger-end demographic.
Despite this, we were able to post growth in Adjusted EBITDA for
the division. Our digital business will be bolstered by the
acquisition of the Bossip and Madame Noire brands, which will be
immediately accretive. MGM National Harbor continues to perform
well, and we have accrued approximately $1.5
million of income in the first quarter. We remain committed
to growing our cash flow in 2017, despite the slow start to the
year. Our name change to Urban One will become effective on
May 5th, and will better
reflect our diversified multimedia platform."
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
2016
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited)
|
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
NET
REVENUE
|
$
101,289
|
|
$
109,088
|
|
OPERATING
EXPENSES
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
31,897
|
|
34,003
|
|
Selling, general and
administrative, excluding stock-based compensation
|
34,455
|
|
35,449
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
10,039
|
|
11,374
|
|
Stock-based
compensation
|
133
|
|
772
|
|
Depreciation and
amortization
|
8,312
|
|
8,682
|
|
Total operating
expenses
|
84,836
|
|
90,280
|
|
Operating income
|
16,453
|
|
18,808
|
|
INTEREST
INCOME
|
103
|
|
68
|
|
INTEREST
EXPENSE
|
20,346
|
|
20,638
|
|
OTHER (INCOME),
net
|
(1,321)
|
|
(11)
|
|
Loss before (benefit
from) provision for income taxes and
noncontrolling interest in (loss) income of
subsidiaries
|
(2,469)
|
|
(1,751)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
(112)
|
|
1,775
|
|
CONSOLIDATED NET
LOSS
|
(2,357)
|
|
(3,526)
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
(44)
|
|
421
|
|
CONSOLIDATED NET LOSS
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(2,313)
|
|
$
(3,947)
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
|
|
|
|
CONSOLIDATED NET LOSS
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(2,313)
|
|
$
(3,947)
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic3
|
47,965,189
|
|
48,664,524
|
|
Weighted average
shares outstanding - diluted4
|
47,965,189
|
|
48,664,524
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
PER SHARE DATA -
basic and diluted:
|
(unaudited)
|
|
(unaudited)
|
|
(in thousands, except
per share data)
|
|
|
|
|
Consolidated net loss attributable to common stockholders
(basic)
|
$
(0.05)
|
|
$
(0.08)
|
|
|
|
|
Consolidated net loss attributable to common stockholders
(diluted)
|
$
(0.05)
|
|
$
(0.08)
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
Broadcast and digital
operating income 1
|
$
34,937
|
|
$
39,636
|
Broadcast and digital
operating income margin (% of net revenue)
|
34.5%
|
|
36.3%
|
|
|
|
|
Broadcast and
digital operating income reconciliation:
|
|
|
|
|
|
|
|
Consolidated net loss attributable to common
stockholders
|
$
(2,313)
|
|
$
(3,947)
|
Add back non-broadcast and digital operating income items included
in consolidated
net loss:
|
|
|
|
Interest
income
|
(103)
|
|
(68)
|
Interest
expense
|
20,346
|
|
20,638
|
(Benefit from)
provision for income taxes
|
(112)
|
|
1,775
|
Corporate selling,
general and administrative expenses
|
10,039
|
|
11,374
|
Stock-based
compensation
|
133
|
|
772
|
Other (income),
net
|
(1,321)
|
|
(11)
|
Depreciation and
amortization
|
8,312
|
|
8,682
|
|
(44)
|
|
421
|
Broadcast and digital
operating income
|
$
34,937
|
|
$
39,636
|
|
|
|
|
Adjusted
EBITDA5
|
$
27,745
|
|
$
30,732
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
Consolidated net loss attributable to common
stockholders:
|
$
(2,313)
|
|
$
(3,947)
|
Interest
income
|
(103)
|
|
(68)
|
Interest
expense
|
20,346
|
|
20,638
|
(Benefit from)
provision for income taxes
|
(112)
|
|
1,775
|
Depreciation and
amortization
|
8,312
|
|
8,682
|
EBITDA
|
$
26,130
|
|
$
27,080
|
Stock-based
compensation
|
133
|
|
772
|
Other (income),
net
|
(1,321)
|
|
(11)
|
Noncontrolling
interest in (loss) income of subsidiaries
|
(44)
|
|
421
|
Employment Agreement
Award and incentive plan award expenses
|
1,041
|
|
2,239
|
Severance-related
costs
|
353
|
|
231
|
Cost method
investment income
|
1,453
|
|
-
|
Adjusted
EBITDA
|
$
27,745
|
|
$
30,732
|
|
March 31,
2017
|
|
December 31,
2016
|
(unaudited)
|
|
|
|
|
(in
thousands)
|
SELECTED BALANCE
SHEET DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
$
40,867
|
|
$
46,781
|
|
Intangible assets,
net
|
1,009,484
|
|
1,018,333
|
|
Total
assets
|
1,352,794
|
|
1,358,786
|
|
Total debt (including
current portion, net of original issue discount and issuance
costs)
|
1,006,706
|
|
1,006,236
|
|
Total
liabilities
|
1,414,649
|
|
1,417,502
|
|
Total stockholders'
deficit
|
(73,476)
|
|
(71,126)
|
|
Redeemable
noncontrolling interest
|
11,621
|
|
12,410
|
|
|
|
|
|
|
|
Current Amount
Outstanding
|
|
Applicable
Interest
Rate
|
|
(in
thousands)
|
|
|
SELECTED LEVERAGE
DATA:
|
|
|
2015 Credit Facility,
net of original issue discount and issuance costs of
approximately
$7.2 million (subject to variable rates) (a)
|
$
336,668
|
|
5.49%
|
|
9.25% senior
subordinated notes due February 2020, net of original issue
discount and
issuance costs of approximately $2.1 million (fixed
rate)
|
312,924
|
|
9.25%
|
|
7.375% senior secured
notes due April 2022, net of original issue discount and
issuance
costs of approximately $4.8 million (fixed rate)
|
345,242
|
|
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
March 31,
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
$
Change
|
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
46,187
|
|
$
|
50,567
|
|
$
|
(4,380)
|
|
|
-8.7%
|
|
Political
Advertising
|
|
|
243
|
|
|
1,526
|
|
|
(1,283)
|
|
|
-84.1%
|
|
Digital
Advertising
|
|
|
5,506
|
|
|
6,481
|
|
|
(975)
|
|
|
-15.0%
|
|
Cable Television
Advertising
|
|
|
21,140
|
|
|
21,954
|
|
|
(814)
|
|
|
-3.7%
|
|
Cable Television
Affiliate Fees
|
|
|
27,323
|
|
|
27,410
|
|
|
(87)
|
|
|
-0.3%
|
|
Event Revenues &
Other
|
|
|
890
|
|
|
1,150
|
|
|
(260)
|
|
|
-22.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
101,289
|
|
$
|
109,088
|
|
$
|
(7,799)
|
|
|
-7.1%
|
|
Net revenue decreased to approximately $101.3 million for the quarter ended March 31, 2017, from approximately $109.1 million for the same period in 2016, a
decrease of 7.1%. Net revenues from our radio broadcasting segment
decreased 7.0% for the quarter ended March
31, 2017, versus the same period in 2016. We experienced net
revenue declines most significantly in our Cincinnati, Cleveland, Dallas, Detroit, Houston and Philadelphia markets, with our Indianapolis, Richmond and St.
Louis markets experiencing growth for the quarter.
Reach Media's net revenues decreased approximately
$2.8 million during the first quarter
of 2017, compared to the same period in 2016 due primarily to
weaker demand. We recognized approximately $48.6 million of revenue from our cable
television segment during the three months ended March 31, 2017, compared to approximately
$49.5 million for the same period in
2016, the decrease was primarily from lower advertising sales.
Finally, net revenues for our digital segment decreased 15.0% for
the three months ended March 31,
2017, compared to the same period in 2016 due primarily to
lower indirect revenue and lower digital sales from our radio
properties.
Operating expenses, excluding depreciation and amortization,
stock-based compensation and impairment of long-lived assets,
decreased to approximately $76.4
million for the quarter ended March
31, 2017, down 5.5% from the approximately $80.8 million incurred for the comparable quarter
in 2016. The operating expense decrease was primarily driven by a
decrease in programming and technical expenses at our cable
television segment due primarily to lower content amortization
expense. In addition, there was a decrease of approximately
$1.3 million in corporate selling,
general and administrative expenses due to a decrease in
compensation expense for the Chief Executive Officer in connection
with the valuation of the Employment Agreement Award element in his
employment agreement
Depreciation and amortization expense decreased to approximately
$8.3 million compared to
approximately $8.7 million for the
quarter ended March 31, 2016. The
decrease was due to the completion of useful lives for certain
assets.
Interest expense decreased to approximately $20.3 million for the quarter ended March 31, 2017, compared to approximately
$20.6 million for the same period in
2016. The Company made cash interest payments of approximately
$19.9 million on its outstanding debt
for the quarter ended March 31, 2017,
compared to cash interest payments of approximately $20.6 million on all outstanding instruments for
the quarter ended March 31, 2016.
As of March 31, 2017, we began
using the estimated annual effective tax rate method under ASC
740-270, "Interim Reporting" to calculate our provision for
income taxes. For the three months ended March 31, 2017, we recorded a benefit from income
taxes of $112,000 on a pre-tax loss
from continuing operations of approximately $2.5 million based on an estimated annual
effective tax rate of 4.5%. The provision for income taxes for the
three months ended March 31, 2016 of
approximately $1.8 million was
primarily attributable to the deferred tax liability for
indefinite-lived intangible assets, based on a discrete tax
provision. The Company paid $167,000
and $105,000 in taxes for the
quarters ended March 31, 2017 and
2016, respectively.
Other income, net increased to approximately $1.3 million for the three months ended
March 31, 2017, compared to
$11,000 for the same period in 2016.
The primary driver of the increase in other income was from our
investment in MGM.
The decrease in noncontrolling interests in (loss) income of
subsidiaries was due primarily to a net loss recognized by Reach
Media during the three months ended March
31, 2017, versus net income during the three months ended
March 31, 2016.
Other pertinent financial information includes capital
expenditures of approximately $1.5
million and $1.2 million for
the quarters ended March 31, 2017 and
2016, respectively. As of March 31,
2017, the Company had total debt (net of cash and restricted
cash balances and original issue discount) of approximately
$965.8 million. There were no open
market stock repurchases made during the three months ended
March 31, 2017. During the
three months ended March 31, 2016,
the Company did not repurchase any Class A common stock and
repurchased 60,566 shares of Class D common stock in the amount of
$81,000. The Company, in connection
with its 2009 stock plan, is authorized to purchase shares of Class
D common stock to satisfy employee tax obligations in connection
with the vesting of share grants under the plan. During the quarter
ended March 31, 2017, the Company
repurchased 317,103 shares of Class D common stock, to satisfy
employee tax obligations, in the amount of $915,000. Comparatively, during the three
months ended March 31, 2016, the
Company repurchased 330,111 shares of Class D common stock, to
satisfy employee tax obligations, in the amount of $568,000.
Effective January 1, 2017, the
Company changed its reportable segment disclosures. Along with the
results of Interactive One, all digital components from our
reportable segments will now be part of a newly formed reportable
segment called "Digital". This new reportable segment will better
reflect the manner in which we manage our business and better
reflect our operational structure. Segment data for the quarter
ended March 31, 2016 has been
reclassified to conform to the current period presentation. These
reclassifications occurred across all segments.
On April 18, 2017, the Company
closed on a new senior secured credit facility (the "2017 Credit
Facility"). The 2017 Credit Facility is governed by a credit
agreement by and among the Company, the lenders party thereto from
time to time and Guggenheim Securities Credit Partners, LLC, as
administrative agent, The Bank of New York Mellon, as collateral
agent and Guggenheim Securities, LLC sole lead arranger and sole
book running manager. The 2017 Credit Facility provides for
$350 million in term loan borrowings,
all of which was advanced and outstanding on the date of the
closing of the transaction.
The 2017 Credit Facility matures on the earlier of (i)
April 18, 2023 or (ii) in the event
such debt is not repaid or refinanced, 91 days prior to the
maturity of either of the Company's 7.375% Senior Secured Notes due
2022 (the "2022 Notes") or the Company's 9.25% Senior Subordinated
Notes due 2020 ("2020 Notes"). At the Company's election, the
interest rate on borrowings under the 2017 Credit Facility are
based on either (i) the then applicable base rate (as defined in
the 2017 Credit Facility as, for any day, a rate per annum (rounded
upward, if necessary, to the next 1/100th of 1%) equal to the
greater of (a) the prime rate published in the Wall Street Journal,
(b) 1/2 of 1% in excess rate of the overnight Federal Funds Rate at
any given time, (c) the one-month LIBOR rate commencing on such day
plus 1.00%) and (d) 2%, or (ii) the then applicable LIBOR rate (as
defined in the 2017 Credit Facility).
The 2017 Credit Facility is (i) guaranteed by each entity that
guarantees the Company's 2022 Notes on a pari passu basis with the
guarantees of the Notes and (ii) secured on a pari passu basis with
the Company's 2022 Notes. The Company's obligations under the 2017
Credit Facility are secured, subject to permitted liens and except
for certain excluded assets (i) on a first priority basis by
certain notes priority collateral and (ii), on a second priority
basis by collateral for the Company's asset backed line of
credit.
In addition to any mandatory or optional prepayments, the
Company is required to pay interest on the term loans (i) quarterly
in arrears for the base rate loans, and (ii) on the last day of
each interest period for LIBOR loans. Certain voluntary prepayments
of the term loans during the first six months will require an
additional prepayment premium. Beginning with the interest payment
date occurring in June 2017 and
ending in March 2023, the Company
will be required to repay principal to the extent then outstanding,
equal to 1∕4 of 1% of the aggregate initial principal amount of all
term loans incurred on the effective date of the 2017 Credit
Facility.
The 2017 Credit Facility contains customary representations and
warranties and events of default, affirmative and negative
covenants (in each case, subject to materiality exceptions and
qualifications) which may be more restrictive than those governing
the Notes. The 2017 Credit Facility also contains certain financial
covenants, including a maintenance covenant requiring the Company's
interest expense coverage ratio (defined as the ratio of
consolidated EBITDA to consolidated interest expense) to be greater
than or equal to 1.25 to 1.00 and its total senior secured leverage
ratio (defined as the ratio of consolidated net senior secured
indebtedness to consolidated EBITDA) to be less than or equal to
5.85 to 1.00.
The proceeds from the 2017 Credit Facility were used to prepay
in full the Company's existing senior secured credit facility and
the agreement governing such credit facility was terminated on
April 18, 2017.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three months ended March 31, 2017 and 2016 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
March 31, 2017
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
101,289
|
$
|
39,737
|
$
|
7,663
|
$
|
5,506
|
$
|
48,554
|
$
|
(171)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
31,897
|
|
7,917
|
|
5,194
|
|
2,603
|
|
16,191
|
|
(8)
|
|
Selling, general and
administrative
|
|
34,455
|
|
18,336
|
|
1,497
|
|
4,041
|
|
10,685
|
|
(104)
|
|
Corporate selling,
general and administrative
|
|
10,039
|
|
-
|
|
1,224
|
|
-
|
|
2,311
|
|
6,504
|
|
Stock-based
compensation
|
|
133
|
|
64
|
|
-
|
|
-
|
|
-
|
|
69
|
|
Depreciation and
amortization
|
|
8,312
|
|
957
|
|
54
|
|
341
|
|
6,561
|
|
399
|
|
Total operating
expenses
|
|
84,836
|
|
27,274
|
|
7,969
|
|
6,985
|
|
35,748
|
|
6,860
|
|
Operating income (loss)
|
|
16,453
|
|
12,463
|
|
(306)
|
|
(1,479)
|
|
12,806
|
|
(7,031)
|
|
INTEREST
INCOME
|
|
103
|
|
-
|
|
-
|
|
-
|
|
-
|
|
103
|
|
INTEREST
EXPENSE
|
|
20,346
|
|
337
|
|
-
|
|
-
|
|
1,919
|
|
18,090
|
|
OTHER INCOME,
net
|
|
(1,321)
|
|
(25)
|
|
-
|
|
-
|
|
-
|
|
(1,296)
|
|
(Loss) income before
(benefit from) provision for income taxes and
noncontrolling interest in (loss) income of
subsidiaries
|
|
(2,469)
|
|
12,151
|
|
(306)
|
|
(1,479)
|
|
10,887
|
|
(23,722)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(112)
|
|
4,661
|
|
(122)
|
|
22
|
|
4,225
|
|
(8,898)
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(2,357)
|
|
7,490
|
|
(184)
|
|
(1,501)
|
|
6,662
|
|
(14,824)
|
|
NET LOSS ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
|
|
(44)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(44)
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(2,313)
|
$
|
7,490
|
$
|
(184)
|
$
|
(1,501)
|
$
|
6,662
|
$
|
(14,780)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
27,745
|
$
|
13,748
|
$
|
(211)
|
$
|
(1,132)
|
$
|
19,394
|
$
|
(4,054)
|
|
|
|
|
|
Three Months Ended
March 31, 2016
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
109,088
|
$
|
42,733
|
$
|
10,454
|
$
|
6,481
|
$
|
49,474
|
$
|
(54)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
34,003
|
|
8,891
|
|
5,450
|
|
2,179
|
|
17,483
|
|
-
|
|
Selling, general and
administrative
|
|
35,449
|
|
18,448
|
|
2,039
|
|
4,084
|
|
10,932
|
|
(54)
|
|
Corporate selling,
general and administrative
|
|
11,374
|
|
-
|
|
947
|
|
(28)
|
|
2,462
|
|
7,993
|
|
Stock-based
compensation
|
|
772
|
|
84
|
|
10
|
|
3
|
|
-
|
|
675
|
|
Depreciation and
amortization
|
|
8,682
|
|
1,144
|
|
42
|
|
444
|
|
6,553
|
|
499
|
|
Total operating
expenses
|
|
90,280
|
|
28,567
|
|
8,488
|
|
6,682
|
|
37,430
|
|
9,113
|
|
Operating income (loss)
|
|
18,808
|
|
14,166
|
|
1,966
|
|
(201)
|
|
12,044
|
|
(9,167)
|
|
INTEREST
INCOME
|
|
68
|
|
-
|
|
-
|
|
-
|
|
-
|
|
68
|
|
INTEREST
EXPENSE
|
|
20,638
|
|
341
|
|
-
|
|
-
|
|
1,919
|
|
18,378
|
|
OTHER INCOME,
net
|
|
(11)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(11)
|
|
(Loss) income before
provision for income taxes and noncontrolling
interest in income of subsidiaries
|
|
(1,751)
|
|
13,825
|
|
1,966
|
|
(201)
|
|
10,125
|
|
(27,466)
|
|
PROVISION FOR INCOME
TAXES
|
|
1,775
|
|
1,729
|
|
37
|
|
-
|
|
9
|
|
-
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(3,526)
|
|
12,096
|
|
1,929
|
|
(201)
|
|
10,116
|
|
(27,466)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
421
|
|
-
|
|
-
|
|
-
|
|
-
|
|
421
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(3,947)
|
$
|
12,096
|
$
|
1,929
|
$
|
(201)
|
$
|
10,116
|
$
|
(27,887)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
30,732
|
$
|
15,574
|
$
|
2,039
|
$
|
252
|
$
|
18,594
|
$
|
(5,727)
|
Radio One, Inc. will hold a conference call to discuss its
results for first fiscal quarter of 2017. The conference call is
scheduled for Thursday, May 04, 2017
at 10:00 a.m. EDT. To participate on
this call, U.S. callers may dial toll-free 1-800-230-1096;
international callers may dial direct (+1) 612-332-0107.
A replay of the conference call will be available from
12:00 p.m. EDT May 04, 2017 until 11:59
p.m. EDT May 06, 2017. 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 422406.
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 57 broadcast stations in 15 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
"Broadcast and digital operating income" consists of net (loss)
income before depreciation and amortization, corporate selling,
general and administrative 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, and
interest income. Broadcast and digital operating income is not a
measure of financial performance under generally accepted
accounting principles. Nevertheless, broadcast and digital
operating income is a significant measure used by our management to
evaluate the operating performance of our core operating segments
because broadcast and digital 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 broadcast and digital operating income is
similar to our historic use of station operating income, however,
reflects our more diverse business and, therefore, may not be
similar to "station operating income" or other similarly titled
measures used by other companies. Broadcast and digital 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
broadcast and digital 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 March 31,
2017 and 2016, Radio One had 47,965,189 and 48,664,524
shares of common stock outstanding on a weighted average basis
(basic), respectively.
4
For the three months ended March 31,
2017 and 2016, Radio One had 47,965,189 and 48,664,524
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 (loss) income of subsidiaries, impairment of long-lived
assets, stock-based compensation, (gain) loss on retirement of
debt, Employment Agreement and incentive plan award expenses,
severance-related costs, cost investment income, 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 measure used by our management to
evaluate 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 or capital
structure. EBITDA is frequently used as one of the measures 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, digital 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/radio-one-inc-reports-first-quarter-results-300451111.html
SOURCE Radio One, Inc.