WASHINGTON, March 7, 2017 /PRNewswire/ -- Radio One,
Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the
quarter ended December 31,
2016. Net revenue was approximately $113.6 million, an increase of 3.8% from the same
period in 2015. Broadcast and internet operating income1
was approximately $43.1 million, an
increase of 5.9% from the same period in 2015. The Company reported
operating income of approximately $17.1
million for the three months ended December 31, 2016, compared to an operating loss
of $11.3 million for the same period
in 2015. Net loss was approximately $3.4
million or $0.07 per share
(basic) compared to approximately $24.3
million or $0.50 per share
(basic) for the same period in 2015.
Alfred C. Liggins, III, Radio
One's CEO and President stated, "Political advertising helped our
radio broadcasting segment achieve both revenue and Adjusted EBITDA
growth compared to the fourth quarter of 2015. Together with a nice
rebound in TV advertising revenue, which was up 18%, this helped
drive our 6% growth in consolidated Adjusted EBITDA. During the
fourth quarter we booked our first income from MGM National Harbor,
which had a strong opening in December. Overall I was pleased with
our performance for the year, which was towards the upper end of
EBITDA guidance. First quarter radio revenues have been
understandably soft, given the political comps from 2016, and we
are currently pacing down approximately 5%. While we expect both
Radio and Reach Media to struggle against tough comps in the first
quarter, our TV business and MGM investment should offset these
declines, and we will be able to grow our Adjusted EBITDA again in
2017. TV One's ratings are rebounding from last year's loss of
Martin, and for fourth quarter total day households were up 2% and
Persons 25-54 were up 3% compared to Q4 2015. The positive ratings
momentum is continuing into the first quarter of 2017, where we are
up 7% and 5% in total day households and Persons 25-54,
respectively."
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited, as
reclassified2)
|
|
(unaudited)
|
|
(as
reclassified2)
|
|
|
(in thousands, except
share data)
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
113,556
|
|
$
109,384
|
|
$
456,219
|
|
$
450,861
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
37,211
|
|
35,743
|
|
134,000
|
|
134,410
|
|
Selling, general and
administrative, excluding stock-based compensation
|
33,252
|
|
32,962
|
|
147,599
|
|
151,359
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
15,107
|
|
14,996
|
|
47,532
|
|
47,252
|
|
Stock-based
compensation
|
1,091
|
|
1,312
|
|
3,410
|
|
5,107
|
|
Depreciation and
amortization
|
8,524
|
|
9,010
|
|
34,247
|
|
35,355
|
|
Impairment of
long-lived assets
|
1,287
|
|
26,666
|
|
1,287
|
|
41,211
|
|
Total operating
expenses
|
96,472
|
|
120,689
|
|
368,075
|
|
414,694
|
|
Operating income (loss)
|
17,084
|
|
(11,305)
|
|
88,144
|
|
36,167
|
|
INTEREST
INCOME
|
40
|
|
34
|
|
214
|
|
102
|
|
INTEREST
EXPENSE
|
20,148
|
|
20,418
|
|
81,636
|
|
80,038
|
|
(GAIN) LOSS ON
RETIREMENT OF DEBT
|
-
|
|
-
|
|
(2,646)
|
|
7,091
|
|
OTHER (INCOME)
EXPENSE, net
|
(852)
|
|
(30)
|
|
(928)
|
|
216
|
|
(Loss)
income before provision for (benefit from) income taxes
and
noncontrolling
interest in (loss) income of subsidiaries
|
(2,172)
|
|
(31,659)
|
|
10,296
|
|
(51,076)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
1,315
|
|
(7,853)
|
|
9,580
|
|
15,058
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
(3,487)
|
|
(23,806)
|
|
716
|
|
(66,134)
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
(120)
|
|
543
|
|
1,139
|
|
7,888
|
|
CONSOLIDATED NET LOSS
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(3,367)
|
|
$
(24,349)
|
|
$
(423)
|
|
$
(74,022)
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
|
|
|
|
|
|
|
|
CONSOLIDATED NET LOSS
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(3,367)
|
|
$
(24,349)
|
|
$
(423)
|
|
$
(74,022)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic3
|
47,463,258
|
|
48,220,262
|
|
47,924,609
|
|
48,027,888
|
|
Weighted average
shares outstanding - diluted4
|
47,463,258
|
|
48,220,262
|
|
47,924,609
|
|
48,027,888
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
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 loss attributable to common stockholders
(basic)
|
$
(0.07)
|
|
$
(0.50)
|
|
$
(0.01)
|
|
$
(1.54)
|
|
|
|
|
|
|
|
|
|
|
Consolidated net loss attributable to common stockholders
(diluted)
|
$
(0.07)
|
|
$
(0.50)
|
|
$
(0.01)
|
|
$
(1.54)
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
|
Broadcast
and internet operating income 1
|
$
43,093
|
|
$
40,679
|
|
$
174,620
|
|
$
165,092
|
|
Broadcast
and internet operating income margin (% of net revenue)
|
37.9%
|
|
37.2%
|
|
38.3%
|
|
36.6%
|
|
|
|
|
|
|
|
|
|
|
Broadcast and
internet operating income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net loss attributable to common
stockholders
|
$
(3,367)
|
|
$
(24,349)
|
|
$
(423)
|
|
$
(74,022)
|
|
Add back non-broadcast and internet operating income items included
in consolidated
net loss:
|
|
|
|
|
|
|
|
|
Interest
income
|
(40)
|
|
(34)
|
|
(214)
|
|
(102)
|
|
Interest
expense
|
20,148
|
|
20,418
|
|
81,636
|
|
80,038
|
|
Provision
for (benefit from) income taxes
|
1,315
|
|
(7,853)
|
|
9,580
|
|
15,058
|
|
Corporate
selling, general and administrative expenses
|
15,107
|
|
14,996
|
|
47,532
|
|
47,252
|
|
Stock-based
compensation
|
1,091
|
|
1,312
|
|
3,410
|
|
5,107
|
|
(Gain)
loss on retirement of debt
|
-
|
|
-
|
|
(2,646)
|
|
7,091
|
|
Other
(income) expense, net
|
(852)
|
|
(30)
|
|
(928)
|
|
216
|
|
Depreciation
and amortization
|
8,524
|
|
9,010
|
|
34,247
|
|
35,355
|
|
Noncontrolling
interest in (loss) income of subsidiaries
|
(120)
|
|
543
|
|
1,139
|
|
7,888
|
|
Impairment
of long-lived assets
|
1,287
|
|
26,666
|
|
1,287
|
|
41,211
|
|
Broadcast
and internet operating income
|
$
43,093
|
|
$
40,679
|
|
$
174,620
|
|
$
165,092
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
30,638
|
|
$
28,911
|
|
$
136,186
|
|
$
125,470
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net loss attributable to common
stockholders:
|
$
(3,367)
|
|
$
(24,349)
|
|
$
(423)
|
|
$
(74,022)
|
|
Interest
income
|
(40)
|
|
(34)
|
|
(214)
|
|
(102)
|
|
Interest
expense
|
20,148
|
|
20,418
|
|
81,636
|
|
80,038
|
|
Provision
for income taxes
|
1,315
|
|
(7,853)
|
|
9,580
|
|
15,058
|
|
Depreciation
and amortization
|
8,524
|
|
9,010
|
|
34,247
|
|
35,355
|
|
EBITDA
|
$
26,580
|
|
$
(2,808)
|
|
$
124,826
|
|
$
56,327
|
|
Stock-based
compensation
|
1,091
|
|
1,312
|
|
3,410
|
|
5,107
|
|
(Gain)
loss on retirement of debt
|
-
|
|
-
|
|
(2,646)
|
|
7,091
|
|
Other
(income) expense, net
|
(852)
|
|
(30)
|
|
(928)
|
|
216
|
|
Noncontrolling
interest in (loss) income of subsidiaries
|
(120)
|
|
543
|
|
1,139
|
|
7,888
|
|
Employment
Agreement Award and incentive plan award expenses
|
2,021
|
|
2,461
|
|
7,823
|
|
4,884
|
|
Severance-related
costs*
|
212
|
|
767
|
|
856
|
|
2,746
|
|
Cost
method investment income*
|
419
|
|
-
|
|
419
|
|
-
|
|
Impairment
of long-lived assets
|
1,287
|
|
26,666
|
|
1,287
|
|
41,211
|
|
Adjusted
EBITDA
|
$
30,638
|
|
$
28,911
|
|
$
136,186
|
|
$
125,470
|
|
|
|
|
|
|
|
|
|
|
*The Company has
modified the definition of Adjusted EBITDA for the inclusion of
severance-related costs and cost-method investment
income.
|
|
|
|
|
|
All prior periods
have been reclassified to conform to the current period
presentation.
|
|
|
|
|
|
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
(unaudited)
|
|
|
|
|
|
(in
thousands)
|
|
SELECTED BALANCE
SHEET DATA:
|
|
|
|
Cash and cash
equivalents and restricted cash
|
$
46,781
|
|
$
67,376
|
|
|
Intangible assets,
net
|
1,018,333
|
|
1,042,956
|
|
|
Total
assets
|
1,358,786
|
|
1,346,524
|
|
|
Total debt (including
current portion, net of original issue discount and issuance
costs)
|
1,006,236
|
|
1,024,337
|
|
|
Total
liabilities
|
1,417,502
|
|
1,407,062
|
|
|
Total
deficit
|
(71,126)
|
|
(71,824)
|
|
|
Redeemable
noncontrolling interest
|
12,410
|
|
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
$8.2 million (subject to variable rates) (a)
|
$
336,574
|
|
5.27%
|
|
|
9.25% senior
subordinated notes due February 2020, net of original issue
discount and
issuance costs of approximately $2.3 million (fixed
rate)
|
312,737
|
|
9.25%
|
|
|
7.375% senior secured
notes due April 2022, net of original issue discount and
issuance
costs of approximately $4.9 million (fixed rate)
|
345,053
|
|
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
December 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
$
Change
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
51,025
|
|
$
|
55,755
|
|
$
|
(4,730)
|
|
-8.5%
|
Political
Advertising
|
|
|
5,719
|
|
|
1,172
|
|
|
4,547
|
|
388.0%
|
Digital
Advertising
|
|
|
7,290
|
|
|
6,451
|
|
|
839
|
|
13.0%
|
Cable Television
Advertising
|
|
|
22,687
|
|
|
19,202
|
|
|
3,485
|
|
18.1%
|
Cable Television
Affiliate Fees
|
|
|
25,326
|
|
|
25,334
|
|
|
(8)
|
|
0.0%
|
Event Revenues &
Other
|
|
|
1,509
|
|
|
1,470
|
|
|
39
|
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
113,556
|
|
$
|
109,384
|
|
$
|
4,172
|
|
3.8%
|
Net revenue increased to approximately $113.6 million for the quarter ended December 31, 2016, from approximately
$109.4 million for the same period in
2015, an increase of 3.8%. Net revenues from our radio broadcasting
segment increased 1.2% for the quarter ended December 31, 2016, versus the same period in
2015. We experienced net revenue growth most significantly in our
Charlotte, Cleveland, Indianapolis, Raleigh and St.
Louis markets; however, this growth was partially offset by
declines in other markets (with Dallas, Houston and Washington D.C. experiencing the most
significant declines). Reach Media's net revenues decreased 5.5% in
the fourth quarter 2016, compared to the same period in 2015 due
primarily to lower advertising revenue. We recognized approximately
$48.0 million of revenue from our
cable television segment during the three months ended December 31, 2016, compared to approximately
$44.7 million for the same period in
2015, the increase was primarily from higher advertising sales.
Finally, net revenues for our internet business increased 20.9% for
the three months ended December 31,
2016, compared to the same period in 2015 due primarily to
an increase in direct revenues.
Operating expenses, excluding depreciation and amortization,
stock-based compensation and impairment of long-lived assets,
increased to approximately $85.6
million for the quarter ended December 31, 2016, up 2.2% from the approximately
$83.7 million incurred for the
comparable quarter in 2015. The operating expense increase was
primarily driven by an increase of approximately $1.7 million in programming and technical
expenses at our cable television segment due primarily to higher
content amortization expense.
Depreciation and amortization expense decreased to approximately
$8.5 million compared to
approximately $9.0 million for the
quarter ended December 31, 2015. The
decrease was due to the completion of useful lives for certain
assets.
Impairment of long-lived assets for the quarters ended
December 31, 2016 and 2015 was
approximately $1.3 million and
$26.7 million, respectively. Our
annual 2016 impairment testing resulted in a non-cash impairment
charge of approximately $1.3 million
associated with of our Columbus market radio broadcasting licenses.
Our annual 2015 impairment testing resulted in a non-cash
impairment charge of approximately $3.1
million related to goodwill in our Cincinnati market as well as a non-cash
impairment charge of approximately $23.6
million associated with several of our radio broadcasting
licenses.
Interest expense decreased to approximately $20.1 million for the quarter ended December 31, 2016, compared to approximately
$20.4 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. During the second quarter of 2016,
the Company redeemed approximately $20
million of its 2020 Notes at a discount. The Company made
cash interest payments of approximately $18.0 million on its outstanding debt for the
quarter ended December 31, 2016,
compared to cash interest payments of approximately $17.7 million on all outstanding instruments for
the quarter ended December 31,
2015.
The provision for income taxes was approximately $1.3 million for the quarter ended December 31, 2016, compared to a benefit from
income taxes of approximately $7.9
million, for the quarter ended December 31, 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 a decrease in impairment charges for the
comparable quarter. The Company received a net tax refund of
$21,000 for the quarter ended
December 31, 2016 and paid
$12,000 in taxes for the quarter
ended December 31, 2015.
Other pertinent financial information includes capital
expenditures of approximately $1.1
million and $1.5 million for
the quarters ended December 31, 2016
and 2015, respectively. As of December
31, 2016, the Company had total debt (net of cash and
restricted cash balances and original issue discount) of
approximately $959.5 million. There
were no stock repurchases made during the three month period ended
December 31, 2016. During the year
ended December 31, 2016, the Company
repurchased 1,255,592 shares of Class D common stock in the
aggregate amount of approximately $3.0
million. 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 year ended December 31, 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 year ended
December 31, 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. There were no stock
repurchases made during the three month period ended December 31, 2015.
The Company also announced that it is monitoring market
conditions and opportunities to refinance the approximately
$345.0 million in borrowings
outstanding under its existing senior credit facility, which
matures in December 2018. While
the Company continually seeks to act opportunistically, there are
no assurances that the Company will complete any refinancing, in
whole or in part, of the existing senior credit facilities.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three months and year ended
December 31, 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
December 31, 2016
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
113,556
|
$
|
48,860
|
$
|
11,602
|
$
|
6,547
|
$
|
47,996
|
$
|
(1,449)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
37,211
|
|
9,787
|
|
5,596
|
|
2,023
|
|
20,762
|
|
(957)
|
|
Selling, general and
administrative
|
|
33,252
|
|
19,947
|
|
2,117
|
|
4,503
|
|
7,177
|
|
(492)
|
|
Corporate selling,
general and administrative
|
|
15,107
|
|
-
|
|
1,162
|
|
-
|
|
2,445
|
|
11,500
|
|
Stock-based
compensation
|
|
1,091
|
|
116
|
|
17
|
|
(4)
|
|
-
|
|
962
|
|
Depreciation and
amortization
|
|
8,524
|
|
1,094
|
|
61
|
|
395
|
|
6,560
|
|
414
|
|
Impairment of
long-lived assets
|
|
1,287
|
|
1,287
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
96,472
|
|
32,231
|
|
8,953
|
|
6,917
|
|
36,944
|
|
11,427
|
|
Operating income (loss)
|
|
17,084
|
|
16,629
|
|
2,649
|
|
(370)
|
|
11,052
|
|
(12,876)
|
|
INTEREST
INCOME
|
|
40
|
|
-
|
|
-
|
|
-
|
|
-
|
|
40
|
|
INTEREST
EXPENSE
|
|
20,148
|
|
330
|
|
-
|
|
-
|
|
1,919
|
|
17,899
|
|
OTHER INCOME,
net
|
|
(852)
|
|
(379)
|
|
-
|
|
-
|
|
-
|
|
(473)
|
|
(Loss) income before
provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries
|
|
(2,172)
|
|
16,678
|
|
2,649
|
|
(370)
|
|
9,133
|
|
(30,262)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
1,315
|
|
(2,263)
|
|
3,206
|
|
27
|
|
16,300
|
|
(15,955)
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(3,487)
|
|
18,941
|
|
(557)
|
|
(397)
|
|
(7,167)
|
|
(14,307)
|
|
NET LOSS ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
|
|
(120)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(120)
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(3,367)
|
$
|
18,941
|
$
|
(557)
|
$
|
(397)
|
$
|
(7,167)
|
$
|
(14,187)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
30,638
|
$
|
19,308
|
$
|
2,727
|
$
|
24
|
$
|
17,621
|
$
|
(9,042)
|
|
|
Three Months Ended
December 31, 2015
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
109,384
|
$
|
48,303
|
$
|
12,271
|
$
|
5,415
|
$
|
44,725
|
$
|
(1,330)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
35,743
|
|
10,161
|
|
5,981
|
|
1,618
|
|
19,020
|
|
(1,037)
|
|
Selling, general and
administrative
|
|
32,962
|
|
19,540
|
|
2,583
|
|
3,719
|
|
8,032
|
|
(912)
|
|
Corporate selling,
general and administrative
|
|
14,996
|
|
-
|
|
1,179
|
|
-
|
|
2,732
|
|
11,085
|
|
Stock-based
compensation
|
|
1,312
|
|
88
|
|
-
|
|
20
|
|
-
|
|
1,204
|
|
Depreciation and
amortization
|
|
9,010
|
|
1,440
|
|
48
|
|
438
|
|
6,553
|
|
531
|
|
Impairment of
long-lived assets
|
|
26,666
|
|
26,666
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
120,689
|
|
57,895
|
|
9,791
|
|
5,795
|
|
36,337
|
|
10,871
|
|
Operating (loss) income
|
|
(11,305)
|
|
(9,592)
|
|
2,480
|
|
(380)
|
|
8,388
|
|
(12,201)
|
|
INTEREST
INCOME
|
|
34
|
|
-
|
|
-
|
|
-
|
|
-
|
|
34
|
|
INTEREST
EXPENSE
|
|
20,418
|
|
321
|
|
-
|
|
-
|
|
1,919
|
|
18,178
|
|
OTHER (INCOME)
EXPENSE, net
|
|
(30)
|
|
16
|
|
-
|
|
-
|
|
-
|
|
(46)
|
|
(Loss) income before
(benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries
|
|
(31,659)
|
|
(9,929)
|
|
2,480
|
|
(380)
|
|
6,469
|
|
(30,299)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(7,853)
|
|
(8,085)
|
|
200
|
|
-
|
|
32
|
|
-
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(23,806)
|
|
(1,844)
|
|
2,280
|
|
(380)
|
|
6,437
|
|
(30,299)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
543
|
|
-
|
|
-
|
|
-
|
|
-
|
|
543
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(24,349)
|
$
|
(1,844)
|
$
|
2,280
|
$
|
(380)
|
$
|
6,437
|
$
|
(30,842)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
28,911
|
$
|
18,933
|
$
|
2,726
|
$
|
145
|
$
|
15,328
|
$
|
(8,221)
|
|
|
|
|
|
Year Ended December
31, 2016
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
456,219
|
$
|
194,457
|
$
|
53,930
|
$
|
22,215
|
$
|
191,854
|
$
|
(6,237)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
134,000
|
|
38,161
|
|
22,880
|
|
7,676
|
|
69,658
|
|
(4,375)
|
|
Selling, general and
administrative
|
|
147,599
|
|
80,146
|
|
18,127
|
|
14,613
|
|
36,575
|
|
(1,862)
|
|
Corporate selling,
general and administrative
|
|
47,532
|
|
-
|
|
3,653
|
|
-
|
|
10,040
|
|
33,839
|
|
Stock-based
compensation
|
|
3,410
|
|
304
|
|
48
|
|
2
|
|
-
|
|
3,056
|
|
Depreciation and
amortization
|
|
34,247
|
|
4,350
|
|
210
|
|
1,694
|
|
26,223
|
|
1,770
|
|
Impairment of
long-lived assets
|
|
1,287
|
|
1,287
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
368,075
|
|
124,248
|
|
44,918
|
|
23,985
|
|
142,496
|
|
32,428
|
|
Operating income (loss)
|
|
88,144
|
|
70,209
|
|
9,012
|
|
(1,770)
|
|
49,358
|
|
(38,665)
|
|
INTEREST
INCOME
|
|
214
|
|
-
|
|
-
|
|
-
|
|
-
|
|
214
|
|
INTEREST
EXPENSE
|
|
81,636
|
|
1,331
|
|
-
|
|
-
|
|
7,676
|
|
72,629
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
(2,646)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,646)
|
|
OTHER INCOME,
net
|
|
(928)
|
|
(401)
|
|
-
|
|
-
|
|
-
|
|
(527)
|
|
Income (loss) before
provision for income taxes and noncontrolling interest
in income of subsidiaries
|
|
10,296
|
|
69,279
|
|
9,012
|
|
(1,770)
|
|
41,682
|
|
(107,907)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
9,580
|
|
5,694
|
|
3,315
|
|
60
|
|
16,368
|
|
(15,857)
|
|
CONSOLIDATED NET
INCOME (LOSS )
|
|
716
|
|
63,585
|
|
5,697
|
|
(1,830)
|
|
25,314
|
|
(92,050)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
1,139
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,139
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(423)
|
$
|
63,585
|
$
|
5,697
|
$
|
(1,830)
|
$
|
25,314
|
$
|
(93,189)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
136,186
|
$
|
76,872
|
$
|
9,332
|
$
|
(63)
|
$
|
75,591
|
$
|
(25,546)
|
|
|
|
|
|
Year Ended December
31, 2015
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
450,861
|
$
|
197,396
|
$
|
54,779
|
$
|
21,177
|
$
|
183,623
|
$
|
(6,114)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
134,410
|
|
40,806
|
|
22,981
|
|
7,873
|
|
67,290
|
|
(4,540)
|
|
Selling, general and
administrative
|
|
151,359
|
|
85,569
|
|
18,493
|
|
13,754
|
|
37,595
|
|
(4,052)
|
|
Corporate selling,
general and administrative
|
|
47,252
|
|
-
|
|
4,310
|
|
-
|
|
12,247
|
|
30,695
|
|
Stock-based
compensation
|
|
5,107
|
|
295
|
|
-
|
|
72
|
|
-
|
|
4,740
|
|
Depreciation and
amortization
|
|
35,355
|
|
4,910
|
|
185
|
|
1,997
|
|
26,152
|
|
2,111
|
|
Impairment of
long-lived assets
|
|
41,211
|
|
26,666
|
|
-
|
|
14,545
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
414,694
|
|
158,246
|
|
45,969
|
|
38,241
|
|
143,284
|
|
28,954
|
|
Operating income (loss)
|
|
36,167
|
|
39,150
|
|
8,810
|
|
(17,064)
|
|
40,339
|
|
(35,068)
|
|
INTEREST
INCOME
|
|
102
|
|
-
|
|
-
|
|
-
|
|
(93)
|
|
195
|
|
INTEREST
EXPENSE
|
|
80,038
|
|
1,236
|
|
-
|
|
-
|
|
9,131
|
|
69,671
|
|
LOSS ON RETIREMENT OF
DEBT
|
|
7,091
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,091
|
|
OTHER EXPENSE,
net
|
|
216
|
|
69
|
|
-
|
|
-
|
|
92
|
|
55
|
|
(Loss) income before
provision for income taxes and noncontrolling interest in
(loss) income of subsidiaries
|
|
(51,076)
|
|
37,845
|
|
8,810
|
|
(17,064)
|
|
31,023
|
|
(111,690)
|
|
PROVISION FOR INCOME
TAXES
|
|
15,058
|
|
14,711
|
|
315
|
|
-
|
|
32
|
|
-
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(66,134)
|
|
23,134
|
|
8,495
|
|
(17,064)
|
|
30,991
|
|
(111,690)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
7,888
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,888
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(74,022)
|
$
|
23,134
|
$
|
8,495
|
$
|
(17,064)
|
$
|
30,991
|
$
|
(119,578)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
125,470
|
$
|
72,189
|
$
|
9,196
|
$
|
(307)
|
$
|
67,376
|
$
|
(22,984)
|
Radio One, Inc. will hold a conference call to discuss its
results for fourth fiscal quarter of 2016. The conference call is
scheduled for Tuesday, March 07, 2017
at 10:00 a.m. EST. To participate on
this call, U.S. callers may dial toll-free 1-800-230-1074;
international callers may dial direct (+1) 612-288-0337.
A replay of the conference call will be available from
12:00 p.m. EST March 07, 2017 until 11:59
p.m. EST March 09, 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 416422. 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 55 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 internet 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 internet operating income is not a
measure of financial performance under generally accepted
accounting principles. Nevertheless, broadcast and internet
operating income is a significant measure used by our management to
evaluate the operating performance of our core operating segments
because broadcast and internet 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 internet 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 internet 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 internet 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 previously reported 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 December 31,
2016 and 2015, Radio One had 47,463,258 and 48,220,262
shares of common stock outstanding on a weighted average basis
(basic), respectively. For the year ended December 31, 2016 and 2015, Radio One had
47,924,609 and 48,027,888 shares of common stock outstanding on a
weighted average basis (basic), respectively.
4
For the three months ended December 31,
2016 and 2015, Radio One had 47,463,258 and 48,220,262
shares of common stock outstanding on a weighted average basis
(fully diluted for outstanding stock options), respectively.
For the year ended December 31, 2016
and 2015, Radio One had 47,924,609 and 48,027,888 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, capital structure or the results of our
affiliated company. Adjusted 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, 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/radio-one-inc-reports-fourth-quarter-results-300418789.html
SOURCE Radio One