WASHINGTON, March 15, 2012 /PRNewswire/ -- Radio One, Inc.
(NASDAQ: ROIAK and ROIA) today reported its results for the quarter
ended December 31, 2011. Giving
effect to the consolidation of TV One, net revenue was
approximately $98.1 million, an
increase of 37.8% from the same period in 2010. Also giving
effect to the consolidation of TV One, station operating income(1)
was approximately $35.3 million, an
increase of 25.6% from the same period in 2010. The Company
recorded a non-cash impairment charge against its goodwill and
other intangible assets of approximately $22.3 million, which led to a net operating loss
of approximately $9.0 million. Net
loss was approximately $19.1 million
or a loss of $0.38 per share, a
decrease from the reported net loss of approximately $27.2 million or $0.52 per share for the same period in 2010.
(Logo: http://photos.prnewswire.com/prnh/20090806/PH57529LOGO
)
Alfred C. Liggins, III, Radio
One's CEO and President stated, "Our fourth quarter radio revenue
was impacted by a combination of tough political comps,
non-recurring national accounts and certain format changes that we
effected during the quarter. Normalizing for political and issue
money, our underlying core radio revenue was down approximately
4.2%. While this is disappointing, I believe our radio group is
poised to rebound strongly in 2012, with mid to high single digit
revenue growth in both the first and second quarters. TV One
continues its strong performance with fourth quarter revenue growth
of 8.7% and EBITDA growth of approximately 102% compared to fourth
quarter 2010. We expect TV One's full year EBITDA to increase to
approximately $40 million for 2012.
Before intercompany management charges, our internet business
generated positive adjusted EBITDA(2) for the second sequential
quarter, and we expect that division to be cash-flow positive for
2012."
|
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
Year Ended
December 31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
(as
adjusted)(3)
|
|
|
|
(as
adjusted)(3)
|
|
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
|
|
(in
thousands, except share data)
|
|
(in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
98,093
|
|
$
71,163
|
|
$
364,609
|
|
$
279,720
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
Programming and technical,
excluding stock-based compensation
|
32,898
|
|
18,260
|
|
115,189
|
|
74,852
|
|
|
Selling, general and
administrative, excluding stock-based compensation
|
29,889
|
|
24,848
|
|
125,692
|
|
102,231
|
|
|
Corporate selling, general and administrative, excluding stock-based compensation
|
8,482
|
|
7,580
|
|
33,696
|
|
28,117
|
|
|
Stock-based
compensation
|
2,251
|
|
922
|
|
5,146
|
|
5,799
|
|
|
Depreciation and
amortization
|
11,243
|
|
3,229
|
|
37,069
|
|
17,385
|
|
|
Impairment of long-lived
assets
|
22,331
|
|
36,063
|
|
22,331
|
|
36,063
|
|
|
Total operating
expenses
|
107,094
|
|
90,902
|
|
339,123
|
|
264,447
|
|
|
Operating (loss) income
|
(9,001)
|
|
(19,739)
|
|
25,486
|
|
15,273
|
|
|
INTEREST INCOME
|
234
|
|
32
|
|
354
|
|
127
|
|
|
INTEREST EXPENSE
|
23,108
|
|
15,775
|
|
88,330
|
|
46,834
|
|
|
GAIN ON INVESTMENT IN AFFILIATED
COMPANY
|
-
|
|
-
|
|
146,879
|
|
-
|
|
|
GAIN (LOSS) ON RETIREMENT OF
DEBT
|
-
|
|
6,646
|
|
(7,743)
|
|
6,646
|
|
|
EQUITY IN INCOME OF AFFILIATED
COMPANY
|
-
|
|
1,726
|
|
3,287
|
|
5,558
|
|
|
OTHER EXPENSE, net
|
321
|
|
127
|
|
324
|
|
3,061
|
|
|
(Loss) income before (benefit from) provision for income taxes, noncontrolling
interest in income of subsidiaries and income (loss) from discontinued operations
|
(32,196)
|
|
(27,237)
|
|
79,609
|
|
(22,291)
|
|
|
(BENEFIT FROM) PROVISION FOR
INCOME TAXES
|
(17,689)
|
|
(714)
|
|
64,216
|
|
3,971
|
|
|
Net (loss) income from
continuing operations
|
(14,507)
|
|
(26,523)
|
|
15,393
|
|
(26,262)
|
|
|
GAIN (LOSS) FROM DISCONTINUED
OPERATIONS, net of tax
|
50
|
|
(47)
|
|
(20)
|
|
(363)
|
|
|
CONSOLIDATED NET (LOSS)
INCOME
|
(14,457)
|
|
(26,570)
|
|
15,373
|
|
(26,625)
|
|
|
NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
|
4,611
|
|
581
|
|
10,014
|
|
2,008
|
|
|
CONSOLIDATED NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(19,068)
|
|
$
(27,151)
|
|
$
5,359
|
|
$
(28,633)
|
|
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE TO COMMON
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME FROM
CONTINUING OPERATIONS
|
$
(19,118)
|
|
$
(27,104)
|
|
$
5,379
|
|
$
(28,270)
|
|
|
GAIN (LOSS) FROM DISCONTINUED
OPERATIONS, net of tax
|
50
|
|
(47)
|
|
(20)
|
|
(363)
|
|
|
CONSOLIDATED NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(19,068)
|
|
$
(27,151)
|
|
$
5,359
|
|
$
(28,633)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic(4)
|
49,782,016
|
|
52,087,460
|
|
50,739,447
|
|
51,509,239
|
|
|
Weighted average shares
outstanding - diluted(5)
|
49,782,016
|
|
52,087,460
|
|
52,294,322
|
|
51,509,239
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
Year Ended
December 31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
(as
adjusted)(3)
|
|
|
|
(as
adjusted)(3)
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
|
|
(in
thousands, except per share data)
|
|
(in
thousands, except per share data)
|
|
|
PER SHARE DATA - basic and
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income from
continuing operations (basic)
|
$
(0.38)
|
|
$
(0.52)
|
|
$
0.11
|
|
$
(0.55)
|
|
|
Income (loss) from
discontinued operations, net of tax (basic)
|
0.00
|
|
(0.00)
|
|
(0.00)
|
|
(0.01)
|
|
|
Consolidated net (loss)
income attributable to common stockholders (basic)
|
$
(0.38)
|
|
$
(0.52)
|
|
$
0.11
|
|
$
(0.56)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income from
continuing operations (diluted)
|
$
(0.38)
|
|
$
(0.52)
|
|
$
0.10
|
|
$
(0.55)
|
|
|
Income (loss) from
discontinued operations, net of tax (diluted)
|
0.00
|
|
(0.00)
|
|
(0.00)
|
|
(0.01)
|
|
|
Consolidated net (loss)
income attributable to common stockholders (diluted)
|
$
(0.38)
|
|
$
(0.52)
|
|
$
0.10
|
|
$
(0.56)
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER DATA
|
|
|
|
|
|
|
|
|
|
Station operating income
(1)
|
$
35,306
|
|
$
28,055
|
|
$
123,728
|
|
$
102,637
|
|
|
Station operating income
margin (% of net revenue)
|
36.0%
|
|
39.4%
|
|
33.9%
|
|
36.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Station operating income
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common stockholders
|
$
(19,068)
|
|
$
(27,151)
|
|
$
5,359
|
|
$
(28,633)
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back non-station
operating income items included in consolidated net income
(loss):
|
|
|
|
|
|
|
|
|
|
Interest income
|
(234)
|
|
(32)
|
|
(354)
|
|
(127)
|
|
|
Interest
expense
|
23,108
|
|
15,775
|
|
88,330
|
|
46,834
|
|
|
(Benefit from) provision
for income taxes
|
(17,689)
|
|
(714)
|
|
64,216
|
|
3,971
|
|
|
Corporate selling, general
and administrative expenses
|
8,482
|
|
7,580
|
|
33,696
|
|
28,117
|
|
|
Stock-based
compensation
|
2,251
|
|
922
|
|
5,146
|
|
5,799
|
|
|
Gain on investment in
affiliated company
|
-
|
|
-
|
|
(146,879)
|
|
-
|
|
|
(Gain) loss on retirement
of debt
|
-
|
|
(6,646)
|
|
7,743
|
|
(6,646)
|
|
|
Equity in income of
affiliated company
|
-
|
|
(1,726)
|
|
(3,287)
|
|
(5,558)
|
|
|
Other expense,
net
|
321
|
|
127
|
|
324
|
|
3,061
|
|
|
Depreciation and
amortization
|
11,243
|
|
3,229
|
|
37,069
|
|
17,385
|
|
|
Noncontrolling interest in
income of subsidiaries
|
4,611
|
|
581
|
|
10,014
|
|
2,008
|
|
|
Impairment of long-lived
assets
|
22,331
|
|
36,063
|
|
22,331
|
|
36,063
|
|
|
(Income) loss from
discontinued operations, net of tax
|
(50)
|
|
47
|
|
20
|
|
363
|
|
|
Station operating
income
|
$
35,306
|
|
$
28,055
|
|
$
123,728
|
|
$
102,637
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(2)
|
$
26,824
|
|
$
20,475
|
|
$
90,032
|
|
$
74,520
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net (loss)
income attributable to common stockholders
|
$
(19,068)
|
|
$
(27,151)
|
|
$
5,359
|
|
$
(28,633)
|
|
|
Interest income
|
(234)
|
|
(32)
|
|
(354)
|
|
(127)
|
|
|
Interest
expense
|
23,108
|
|
15,775
|
|
88,330
|
|
46,834
|
|
|
(Benefit from) provision
for income taxes
|
(17,689)
|
|
(714)
|
|
64,216
|
|
3,971
|
|
|
Depreciation and
amortization
|
11,243
|
|
3,229
|
|
37,069
|
|
17,385
|
|
|
EBITDA
|
$
(2,640)
|
|
$
(8,893)
|
|
$
194,620
|
|
$
39,430
|
|
|
Stock-based
compensation
|
2,251
|
|
922
|
|
5,146
|
|
5,799
|
|
|
Gain on investment in
affiliated company
|
-
|
|
-
|
|
(146,879)
|
|
-
|
|
|
(Gain) loss on retirement
of debt
|
-
|
|
(6,646)
|
|
7,743
|
|
(6,646)
|
|
|
Equity in income of
affiliated company
|
-
|
|
(1,726)
|
|
(3,287)
|
|
(5,558)
|
|
|
Other expense,
net
|
321
|
|
127
|
|
324
|
|
3,061
|
|
|
Noncontrolling interest in
income of subsidiaries
|
4,611
|
|
581
|
|
10,014
|
|
2,008
|
|
|
Impairment of long-lived
assets
|
22,331
|
|
36,063
|
|
22,331
|
|
36,063
|
|
|
(Income) loss from
discontinued operations, net of tax
|
(50)
|
|
47
|
|
20
|
|
363
|
|
|
Adjusted EBITDA
|
$
26,824
|
|
$
20,475
|
|
$
90,032
|
|
$
74,520
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2011
|
|
December 31,
2010
|
|
|
|
(as
adjusted)(3)
|
|
|
(unaudited)
|
|
|
|
|
|
(in
thousands)
|
|
|
SELECTED BALANCE SHEET
DATA:
|
|
|
|
Cash and cash
equivalents
|
$
35,939
|
|
$
9,192
|
|
|
Intangible assets,
net
|
1,244,861
|
|
838,945
|
|
|
Total assets
|
1,486,482
|
|
999,212
|
|
|
Total debt (including current
portion)
|
808,904
|
|
642,222
|
|
|
Total liabilities
|
1,053,071
|
|
774,242
|
|
|
Total stockholders'
equity
|
413,068
|
|
194,335
|
|
|
Redeemable noncontrolling
interest
|
20,343
|
|
30,635
|
|
|
Noncontrolling
interest
|
205,063
|
|
-
|
|
|
|
|
|
|
|
|
|
Current
Amount Outstanding
|
|
Applicable
Interest Rate
|
|
|
(in
thousands)
|
|
|
|
|
SELECTED LEVERAGE AND SWAP
DATA:
|
|
|
|
Senior bank term debt, net of
original issue discount of approximately $6.7 million (subject to
variable rates) (a)
|
$
376,357
|
|
7.50%
|
|
|
12-1/2%/15% senior
subordinated notes (fixed rate)
|
312,800
|
|
15.00%
|
|
|
6-3/8% senior subordinated notes
(fixed rate)
|
747
|
|
6.38%
|
|
|
10% Senior Secured TV One Notes due March 2016 (fixed rate)
|
119,000
|
|
10.00%
|
|
|
|
|
|
|
|
|
(a)
|
Subject to variable Libor Rate
plus a spread currently at 6.00% and 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 and
10-K/A, and 10-Q and 10-Q/A 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 increased to approximately $98.1 million for the quarter ended December 31, 2011, from approximately
$71.2 million for the same period in
2010, an increase of 37.8%. Net revenues from our radio segment for
the quarter ended December 31, 2011
decreased 9.4% from the same period in 2010. We began to
consolidate the results of TV One during the quarter ended
June 30, 2011 and recognized
approximately $31.3 million of
incremental revenue from our new cable television segment during
the three months ended December 31,
2011. We experienced net revenue growth for our radio
stations in our Cincinnati,
Raleigh and St. Louis markets, while our Baltimore, Columbus, Dallas, Houston, Philadelphia and Washington D.C. clusters experienced
significant net revenue declines. Reach Media net revenue increased
13.0% for the three months ended December
31, 2011 compared to the same period in 2010 and net revenue
from our internet business increased 30.5% for the same period.
Operating expenses, excluding depreciation and amortization,
stock-based compensation and impairment of long-lived assets
increased to approximately $71.3
million from approximately $50.7
million between the quarters ended December 31, 2011 and 2010, respectively, an
increase of 40.6%. Approximately $13.6
million of the increase is a result of the TV One
consolidation specifically related to programming and technical
operating expenses. For our cable television segment, these
operating expenses include expenses associated with the technical,
programming, production, and content management. Approximately
$11.2 million of the increase in
programming and technical relates specifically to content
amortization. Excluding the impact of consolidating TV One results,
our operating expenses not including depreciation and amortization,
stock-based compensation and impairment of long-lived assets
remained flat for the quarter compared to the same period in
2010.
Stock-based compensation increased to approximately $2.3 million for the quarter ended December 31, 2011, compared to $922,000 for the same period in 2010, an increase
of 149.5%. Increased stock-based compensation expense was due to
the accelerated vesting of approximately 1,000,000 shares of
restricted stock representing the final portion of shares pursuant
to a long-term incentive plan granted to officers and certain key
employees in January 2010.
Stock-based compensation requires measurement of compensation costs
for all stock-based awards at fair value on date of grant and
recognition of compensation over the service period for awards
expected to vest.
Depreciation and amortization expense increased to approximately
$11.2 million compared to
approximately $3.2 million for the
quarters ended December 31, 2011 and
2010, respectively, an increase of 250.0%. Additional depreciation
and amortization expense of approximately $7.6 million resulted from the fixed and
intangible assets recorded as part of the consolidation of TV
One.
Impairment of long-lived assets for the quarter ended
December 31, 2011 decreased to approximately $22.3 million, compared to approximately
$36.1 million for the same period in
2010, a decrease of 38.2%. Our annual 2011 impairment testing
resulted in a non-cash impairment charge to goodwill in our
Columbus market as well as a
non-cash charge associated with Reach Media's intangible assets.
Our 2010 annual impairment testing resulted in a non-cash charge to
radio broadcasting licenses in Philadelphia as well as a non-cash charge
associated with Reach Media goodwill.
Interest expense increased to approximately $23.1 million for the quarter ended December 31, 2011, from approximately
$15.8 million for the same period in
2010, an increase of 46.2%. The increase in interest expense was
due to higher interest rates associated with our new 2011 senior
credit facility, our new senior subordinated note and notes issued
by TV One. These instruments were all in effect for the three
months ended December 31, 2011, while
none of these instruments, except for our new senior subordinated
note, were in place during the comparable period in
2010. The overall effective rate of borrowing for the
three months ended December 31, 2011
increased approximately 1.5% compared to the three months ended
December 31, 2010.
Approximately $2.4 million of
the increased interest expense relates to the debt recorded as part
of the consolidation of TV One. The Company made interest
payments of approximately $15.5
million for the quarter ended December 31, 2011.
As there were no early bond redemptions for the quarter ended
December 31 2011, there was no gain
on retirement of debt to report for the quarter, compared to a gain
of approximately $6.6 million for the
same period in 2010. The fourth quarter 2010 net gain on retirement
of debt was due to the early redemption of the Company's
outstanding 6-3/8% Senior Subordinated Notes due 2013 (the "2013
Notes") at a discount. This amount was offset by a write-off
of approximately $3.3 million of debt
costs associated with the Company's previously outstanding 8-7/8%
Senior Subordinated Notes due 2011 and the 2013 Notes. A principal
amount of $747,000 remained
outstanding as of December 31, 2011
for the 2013 notes.
There was no equity in income of affiliated company for the
quarter ended December 31, 2011
compared to approximately $1.7
million for the same period in 2010, a decrease of 100.0%.
Equity in income of affiliated company primarily reflected our
estimated equity in the net income of TV One. As a result of the
consolidation of TV One during the second quarter of 2011, there
was no equity in income of affiliated company for the three months
ended December 31, 2011. Previously,
the Company's share of the net income was driven by TV One's
current capital structure and the Company's percentage ownership of
the equity securities of TV One.
The income tax benefit for the quarter ended December 31, 2011 was approximately $17.7 million compared to a benefit of
$714,000 for the same quarter in
2010. The income tax rate for 2011 reflects the change in the
deferred tax liability ("DTL") associated with certain
indefinite-lived intangibles, which increases as tax amortization
on these intangibles is recognized and decreases as impairments for
book purposes are recorded on these assets. In addition to the
DTL on these intangibles, a portion of the DTL for the partnership
interest in TV One cannot be offset by the deferred tax assets from
the net operating loss carryforward. The tax benefit for the fourth
quarter 2010 relates mostly to the impairment charges for
indefinite-lived intangibles recorded in that quarter, which had
the impact of reducing the Company's deferred tax liability. The
Company paid approximately $1.0
million in taxes for the quarter ended December 31, 2011.
Income (loss) from discontinued operations, net of tax, includes
the results of operations for our sold radio stations (or stations
made the subject of a local marketing agreement) and Giant
Magazine, which ceased publication in December 2009. Income from discontinued
operations, net of tax, was $50,000
for the quarter ended December 31,
2011, compared to a loss from discontinued operations, net
of tax, of $47,000 for the same
period in 2010.
The increase in noncontrolling interests in income of
subsidiaries is due primarily to the impact of consolidating TV One
results for the three months ended December
31, 2011.
Other pertinent financial information includes capital
expenditures of approximately $4.0
million and $937,000 for the
quarters ended December 31, 2011 and
2010, respectively. For the fourth quarter 2011, approximately
$1.8 million of capital expenditures
relates to the Company's Washington
D.C. market and Corporate office moves to Silver Spring, MD. $500,000 relates to expenditures associated with
the Houston news format switch and
$600,000 relates to a tower upgrade
in Atlanta. The Company received
dividends in the amount of approximately $5.1 million for the quarter ended December 31, 2011 and approximately $14.6 million for the year ended December 31, 2011. As of December 31, 2011, the Company had total debt
(net of cash balances) of approximately $773.0 million. The Company's cash and cash
equivalents by segment are as follows: Radio One and Internet
approximately $19.4 million, Reach
Media approximately $1.7 million and
Cable Television approximately $14.9
million. In addition to cash and cash equivalents, the Cable
Television segment also has short-term investments of $761,000 and long-term investments of
approximately $7.4 million. During
the quarter ended December 31, 2011,
the Company repurchased 25,250 shares of Class A common stock in
the amount of $32,000 and 752,132
shares of Class D common stock in the amount of $926,000. During the year ended
December 31, 2011, the Company
repurchased 54,566 shares of Class A common stock in the amount of
$73,000 and 4,245,567 shares of Class
D common stock in the amount of approximately $9.4 million.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three months and year ended
December 31, 2011 and 2010 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 December 31, 2011
|
|
|
|
(in
thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio One
|
|
Reach
Media
|
|
Internet
|
|
Cable
Television
|
|
Corporate/
Eliminations/
Other
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
|
98,093
|
$
|
54,245
|
$
|
10,454
|
$
|
4,823
|
$
|
31,313
|
$
|
(2,742)
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
32,898
|
|
14,131
|
|
5,287
|
|
1,872
|
|
13,628
|
|
(2,020)
|
|
|
Selling, general and
administrative
|
|
29,889
|
|
21,129
|
|
1,876
|
|
3,132
|
|
4,963
|
|
(1,211)
|
|
|
Corporate selling, general and
administrative
|
|
8,482
|
|
-
|
|
1,517
|
|
-
|
|
1,974
|
|
4,991
|
|
|
Stock-based
compensation
|
|
2,251
|
|
384
|
|
-
|
|
75
|
|
-
|
|
1,792
|
|
|
Depreciation and
amortization
|
|
11,243
|
|
1,615
|
|
989
|
|
819
|
|
7,582
|
|
238
|
|
|
Impairment of long-lived
assets
|
|
22,331
|
|
14,509
|
|
7,822
|
|
-
|
|
-
|
|
-
|
|
|
Total operating
expenses
|
|
107,094
|
|
51,768
|
|
17,491
|
|
5,898
|
|
28,147
|
|
3,790
|
|
|
Operating (loss) income
|
|
(9,001)
|
|
2,477
|
|
(7,037)
|
|
(1,075)
|
|
3,166
|
|
(6,532)
|
|
|
INTEREST INCOME
|
|
234
|
|
-
|
|
3
|
|
-
|
|
198
|
|
33
|
|
|
INTEREST EXPENSE
|
|
23,108
|
|
426
|
|
18
|
|
-
|
|
2,424
|
|
20,240
|
|
|
OTHER EXPENSE, net
|
|
321
|
|
321
|
|
-
|
|
-
|
|
8
|
|
(8)
|
|
|
(Loss) income before (benefit
from) provision for income taxes, noncontrolling interest in income
of subsidiaries and income from discontinued operations
|
|
(32,196)
|
|
1,730
|
|
(7,052)
|
|
(1,075)
|
|
932
|
|
(26,731)
|
|
|
(BENEFIT FROM) PROVISION FOR
INCOME TAXES
|
|
(17,689)
|
|
(15,134)
|
|
(2,555)
|
|
-
|
|
-
|
|
-
|
|
|
Net (loss) income from
continuing operations
|
|
(14,507)
|
|
16,864
|
|
(4,497)
|
|
(1,075)
|
|
932
|
|
(26,731)
|
|
|
INCOME FROM DISCONTINUED
OPERATIONS, net of tax
|
|
50
|
|
48
|
|
-
|
|
2
|
|
-
|
|
-
|
|
|
CONSOLIDATED NET (LOSS)
INCOME
|
|
(14,457)
|
|
16,912
|
|
(4,497)
|
|
(1,073)
|
|
932
|
|
(26,731)
|
|
|
NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
|
|
4,611
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,611
|
|
|
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(19,068)
|
$
|
16,912
|
$
|
(4,497)
|
$
|
(1,073)
|
$
|
932
|
$
|
(31,342)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(2)
|
$
|
26,824
|
$
|
18,985
|
$
|
1,774
|
$
|
(181)
|
$
|
10,748
|
$
|
(4,502)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31, 2010
|
|
|
|
|
|
|
(in
thousands, unaudited, as adjusted)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio One
|
|
Reach
Media
|
|
Internet
|
|
Corporate/
Eliminations/
Other
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
|
71,163
|
$
|
59,884
|
$
|
9,250
|
$
|
3,697
|
$
|
(1,668)
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
18,260
|
|
12,859
|
|
4,787
|
|
2,353
|
|
(1,739)
|
|
|
Selling, general and
administrative
|
|
24,848
|
|
21,284
|
|
1,374
|
|
2,560
|
|
(370)
|
|
|
Corporate selling, general and
administrative
|
|
7,580
|
|
-
|
|
1,310
|
|
-
|
|
6,270
|
|
|
Stock-based
compensation
|
|
922
|
|
137
|
|
-
|
|
24
|
|
761
|
|
|
Depreciation and
amortization
|
|
3,229
|
|
789
|
|
1,089
|
|
1,089
|
|
262
|
|
|
Impairment of long-lived
assets
|
|
36,063
|
|
19,949
|
|
16,114
|
|
-
|
|
-
|
|
|
Total operating
expenses
|
|
90,902
|
|
55,018
|
|
24,674
|
|
6,026
|
|
5,184
|
|
|
Operating (loss) income
|
|
(19,739)
|
|
4,866
|
|
(15,424)
|
|
(2,329)
|
|
(6,852)
|
|
|
INTEREST INCOME
|
|
32
|
|
-
|
|
20
|
|
-
|
|
12
|
|
|
INTEREST EXPENSE
|
|
15,775
|
|
-
|
|
23
|
|
-
|
|
15,752
|
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
6,646
|
|
-
|
|
-
|
|
-
|
|
6,646
|
|
|
EQUITY IN INCOME OF AFFILIATED
COMPANY
|
|
1,726
|
|
-
|
|
-
|
|
-
|
|
1,726
|
|
|
OTHER EXPENSE, net
|
|
127
|
|
148
|
|
-
|
|
(27)
|
|
6
|
|
|
(Loss) income before (benefit
from) provision for income taxes, noncontrolling interest in income
of subsidiaries and loss from discontinued operations
|
|
(27,237)
|
|
4,718
|
|
(15,427)
|
|
(2,302)
|
|
(14,226)
|
|
|
(BENEFIT FROM) PROVISION FOR
INCOME TAXES
|
|
(714)
|
|
(788)
|
|
74
|
|
-
|
|
-
|
|
|
Net (loss) income from
continuing operations
|
|
(26,523)
|
|
5,506
|
|
(15,501)
|
|
(2,302)
|
|
(14,226)
|
|
|
LOSS FROM DISCONTINUED
OPERATIONS, net of tax
|
|
(47)
|
|
(46)
|
|
-
|
|
(1)
|
|
-
|
|
|
CONSOLIDATED NET (LOSS)
INCOME
|
|
(26,570)
|
|
5,460
|
|
(15,501)
|
|
(2,303)
|
|
(14,226)
|
|
|
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
581
|
|
-
|
|
-
|
|
-
|
|
581
|
|
|
CONSOLIDATED NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(27,151)
|
$
|
5,460
|
$
|
(15,501)
|
$
|
(2,303)
|
$
|
(14,807)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(2)
|
$
|
20,475
|
$
|
25,741
|
$
|
1,779
|
$
|
(1,216)
|
$
|
(5,829)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2011
|
|
|
|
|
|
|
(in
thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio One
|
|
Reach
Media
|
|
Internet
|
|
Cable
Television
|
|
Corporate/
Eliminations/
Other
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
|
364,609
|
$
|
221,396
|
$
|
48,382
|
$
|
17,529
|
$
|
86,024
|
$
|
(8,722)
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
115,189
|
|
53,895
|
|
21,206
|
|
8,563
|
|
39,082
|
|
(7,557)
|
|
|
Selling, general and
administrative
|
|
125,692
|
|
84,230
|
|
14,105
|
|
11,342
|
|
19,016
|
|
(3,001)
|
|
|
Corporate selling, general and
administrative
|
|
33,696
|
|
-
|
|
6,115
|
|
-
|
|
3,271
|
|
24,310
|
|
|
Stock-based
compensation
|
|
5,146
|
|
836
|
|
-
|
|
157
|
|
-
|
|
4,153
|
|
|
Depreciation and
amortization
|
|
37,069
|
|
6,705
|
|
3,952
|
|
3,694
|
|
21,790
|
|
928
|
|
|
Impairment of long-lived
assets
|
|
22,331
|
|
14,509
|
|
7,822
|
|
-
|
|
-
|
|
-
|
|
|
Total operating
expenses
|
|
339,123
|
|
160,175
|
|
53,200
|
|
23,756
|
|
83,159
|
|
18,833
|
|
|
Operating income (loss)
|
|
25,486
|
|
61,221
|
|
(4,818)
|
|
(6,227)
|
|
2,865
|
|
(27,555)
|
|
|
INTEREST INCOME
|
|
354
|
|
-
|
|
15
|
|
-
|
|
303
|
|
36
|
|
|
INTEREST EXPENSE
|
|
88,330
|
|
426
|
|
64
|
|
-
|
|
8,611
|
|
79,229
|
|
|
GAIN ON INVESTMENT IN AFFILIATED
COMPANY
|
|
146,879
|
|
-
|
|
-
|
|
-
|
|
-
|
|
146,879
|
|
|
LOSS ON RETIREMENT OF
DEBT
|
|
7,743
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,743
|
|
|
EQUITY IN INCOME OF AFFILIATED
COMPANY
|
|
3,287
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,287
|
|
|
OTHER EXPENSE, net
|
|
324
|
|
266
|
|
-
|
|
-
|
|
8
|
|
50
|
|
|
Income (loss) before provision
for income taxes, noncontrolling interest in income of subsidiaries
and (loss) income from discontinued operations
|
|
79,609
|
|
60,529
|
|
(4,867)
|
|
(6,227)
|
|
(5,451)
|
|
35,625
|
|
|
PROVISION FOR INCOME
TAXES
|
|
64,216
|
|
66,185
|
|
(1,969)
|
|
-
|
|
-
|
|
-
|
|
|
Net income (loss) from
continuing operations
|
|
15,393
|
|
(5,656)
|
|
(2,898)
|
|
(6,227)
|
|
(5,451)
|
|
35,625
|
|
|
(LOSS) INCOME FROM DISCONTINUED
OPERATIONS, net of tax
|
|
(20)
|
|
(24)
|
|
-
|
|
4
|
|
-
|
|
-
|
|
|
CONSOLIDATED NET INCOME
(LOSS)
|
|
15,373
|
|
(5,680)
|
|
(2,898)
|
|
(6,223)
|
|
(5,451)
|
|
35,625
|
|
|
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
10,014
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10,014
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
$
|
5,359
|
$
|
(5,680)
|
$
|
(2,898)
|
$
|
(6,223)
|
$
|
(5,451)
|
$
|
25,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(2)
|
$
|
90,032
|
$
|
83,271
|
$
|
6,956
|
$
|
(2,376)
|
$
|
24,655
|
$
|
(22,474)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2010
|
|
|
|
|
|
|
(in
thousands, unaudited, as adjusted)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio One
|
|
Reach
Media
|
|
Internet
|
|
Corporate/
Eliminations/
Other
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
|
279,720
|
$
|
229,314
|
$
|
41,773
|
$
|
16,027
|
$
|
(7,394)
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
74,852
|
|
51,899
|
|
19,888
|
|
9,514
|
|
(6,449)
|
|
|
Selling, general and
administrative
|
|
102,231
|
|
83,076
|
|
8,786
|
|
13,063
|
|
(2,694)
|
|
|
Corporate selling, general and
administrative
|
|
28,117
|
|
-
|
|
6,143
|
|
-
|
|
21,974
|
|
|
Stock-based
compensation
|
|
5,799
|
|
834
|
|
-
|
|
160
|
|
4,805
|
|
|
Depreciation and
amortization
|
|
17,385
|
|
7,080
|
|
4,249
|
|
4,942
|
|
1,114
|
|
|
Impairment of long-lived
assets
|
|
36,063
|
|
19,949
|
|
16,114
|
|
-
|
|
-
|
|
|
Total operating
expenses
|
|
264,447
|
|
162,838
|
|
55,180
|
|
27,679
|
|
18,750
|
|
|
Operating income (loss)
|
|
15,273
|
|
66,476
|
|
(13,407)
|
|
(11,652)
|
|
(26,144)
|
|
|
INTEREST INCOME
|
|
127
|
|
-
|
|
71
|
|
-
|
|
56
|
|
|
INTEREST EXPENSE
|
|
46,834
|
|
-
|
|
78
|
|
-
|
|
46,756
|
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
6,646
|
|
-
|
|
-
|
|
-
|
|
6,646
|
|
|
EQUITY IN INCOME OF AFFILIATED
COMPANY
|
|
5,558
|
|
-
|
|
-
|
|
-
|
|
5,558
|
|
|
OTHER EXPENSE (INCOME),
net
|
|
3,061
|
|
(84)
|
|
-
|
|
133
|
|
3,012
|
|
|
(Loss) income before provision
for income taxes, noncontrolling interest in income of subsidiaries
and (loss) income from discontinued operations
|
|
(22,291)
|
|
66,560
|
|
(13,414)
|
|
(11,785)
|
|
(63,652)
|
|
|
PROVISION FOR INCOME
TAXES
|
|
3,971
|
|
3,137
|
|
834
|
|
-
|
|
-
|
|
|
Net (loss) income from
continuing operations
|
|
(26,262)
|
|
63,423
|
|
(14,248)
|
|
(11,785)
|
|
(63,652)
|
|
|
(LOSS) INCOME FROM DISCONTINUED
OPERATIONS, net of tax
|
|
(363)
|
|
(624)
|
|
-
|
|
261
|
|
-
|
|
|
CONSOLIDATED NET (LOSS)
INCOME
|
|
(26,625)
|
|
62,799
|
|
(14,248)
|
|
(11,524)
|
|
(63,652)
|
|
|
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
2,008
|
|
-
|
|
-
|
|
-
|
|
2,008
|
|
|
NET (LOSS) INCOME ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
$
|
(28,633)
|
$
|
62,799
|
$
|
(14,248)
|
$
|
(11,524)
|
$
|
(65,660)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(2)
|
$
|
74,520
|
$
|
94,339
|
$
|
6,956
|
$
|
(6,550)
|
$
|
(20,225)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio One, Inc. will hold a conference call to discuss its
results for the fourth quarter 2011, as well as full year 2011.
This conference call is scheduled for Thursday, March 15, 2012 at 10:00 a.m. Eastern Daylight Time. To participate
on this call, U.S. callers may dial toll free 1-800-230-1059;
international callers may dial direct (+1) 612-234-9959.
A replay of the conference call will be available from
12:30 p.m. Eastern Daylight Time
March 16, 2012 until 11:59 p.m. March 18,
2012. 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 237163. 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. (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 or operating 53 broadcast
stations located in 15 urban markets in the United States. As a part of its core
broadcasting business, Radio One operates syndicated programming
including the Russ Parr Morning Show, the Yolanda Adams Morning
Show, the Rickey Smiley Morning Show, CoCo Brother Live, CoCo
Brother's "Spirit" program, Bishop T.D. Jakes' "Empowering
Moments", the Reverend Al Sharpton Show, and the Warren Ballentine
Show. The Company also owns a controlling interest in Reach Media,
Inc. (http://www.blackamericaweb.com/), owner of the Tom Joyner
Morning Show and other businesses associated with Tom Joyner. Beyond its core radio broadcasting
business, Radio One owns Interactive One
(http://www.interactiveone.com/), an online platform serving the
African-American community through social content, news,
information, and entertainment, which operates a number of branded
sites, including News One, UrbanDaily, HelloBeautiful, Community
Connect Inc. (http://www.communityconnect.com/), an online social
networking company, which operates a number of branded websites,
including BlackPlanet, MiGente, and Asian Avenue. 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 we believe station operating income is
often a useful measure of a broadcasting company's operating
performance and 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. Station operating income is frequently used as one of the
bases for comparing businesses in our industry, although our
measure of station operating income may not be comparable to
similarly titled measures of other companies. 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 loss to station
operating income has been provided in this release. Station
operating income includes results from all four of our operating
segments (radio broadcasting, Reach Media, internet and cable
television).
(2) "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. 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. 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 loss to EBITDA and Adjusted
EBITDA has been provided in this release.
(3) 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."
(4) For the quarter ended December 31,
2011 and 2010, Radio One had 49,782,016 and 52,087,460
shares of common stock outstanding on a weighted average basis
(basic), respectively. For the year ended December 31, 2011 and 2010, Radio One had
50,739,447 and 51,509,239 shares of common stock outstanding on a
weighted average basis (basic), respectively.
(5) For the quarter ended December 31,
2011 and 2010, Radio One had 49,782,016 and 52,087,460
shares of common stock outstanding on a weighted average basis
(fully diluted) for outstanding stock options, respectively.
For the year ended December 31,
2011 and 2010, Radio One had 52,294,322 and 51,509,239
shares of common stock outstanding on a weighted average basis
(fully diluted) for outstanding stock options, respectively.
SOURCE Radio One, Inc.