Radio One, Inc. Reports Third Quarter Results
Based on
Cable television revenues were impacted by audience under-delivery relative to our 2015/16 upfront rate card, but as we move into Q4 and the new broadcast year, we have course-corrected and this issue is not expected to recur. We anticipate high single digit advertising growth for TV One in the fourth quarter.
In order to better reflect the diversified media platform that we have built, effective
RESULTS OF OPERATIONS |
||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
2016 |
2015 |
2016 |
2015 |
|||||
STATEMENT OF OPERATIONS |
(unaudited) |
(unaudited, as reclassified2) |
(unaudited) |
(unaudited, as reclassified2) |
||||
(in thousands, except share data) |
(in thousands, except share data) |
|||||||
NET REVENUE |
$ 110,856 |
$ 115,893 |
$ 342,663 |
$ 341,477 |
||||
OPERATING EXPENSES |
||||||||
Programming and technical, excluding stock-based compensation |
32,093 |
32,785 |
96,789 |
98,667 |
||||
Selling, general and administrative, excluding stock-based compensation |
35,806 |
41,380 |
114,347 |
118,397 |
||||
Corporate selling, general and administrative, excluding stock-based compensation |
9,173 |
10,798 |
32,425 |
32,256 |
||||
Stock-based compensation |
782 |
1,016 |
2,319 |
3,795 |
||||
Depreciation and amortization |
8,469 |
8,277 |
25,723 |
26,345 |
||||
Impairment of long-lived assets |
- |
14,545 |
- |
14,545 |
||||
Total operating expenses |
86,323 |
108,801 |
271,603 |
294,005 |
||||
Operating income |
24,533 |
7,092 |
71,060 |
47,472 |
||||
INTEREST INCOME |
51 |
33 |
174 |
68 |
||||
INTEREST EXPENSE |
20,319 |
20,356 |
61,488 |
59,620 |
||||
GAIN (LOSS) ON RETIREMENT OF DEBT |
- |
- |
2,646 |
(7,091) |
||||
OTHER (INCOME) EXPENSE, net |
(22) |
(39) |
(76) |
246 |
||||
Income (loss) before provision for income taxes and noncontrolling interest in income of subsidiaries |
4,287 |
(13,192) |
12,468 |
(19,417) |
||||
PROVISION FOR INCOME TAXES |
4,307 |
4,439 |
8,265 |
22,911 |
||||
CONSOLIDATED NET (LOSS) INCOME |
(20) |
(17,631) |
4,203 |
(42,328) |
||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
403 |
514 |
1,259 |
7,345 |
||||
CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ (423) |
$ (18,145) |
$ 2,944 |
$ (49,673) |
||||
AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS |
||||||||
CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ (423) |
$ (18,145) |
$ 2,944 |
$ (49,673) |
||||
Weighted average shares outstanding - basic3 |
47,481,004 |
48,220,262 |
48,066,267 |
47,963,763 |
||||
Weighted average shares outstanding - diluted4 |
47,481,004 |
48,220,262 |
49,240,166 |
47,963,763 |
||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||
2016 |
2015 |
2016 |
2015 |
||||
PER SHARE DATA - basic and diluted: |
(unaudited) |
(unaudited, as reclassified2) |
(unaudited) |
(unaudited, as reclassified2) |
|||
(in thousands, except per share data) |
(in thousands, except per share data) |
||||||
Consolidated net (loss) income attributable to common stockholders (basic) |
$ (0.01) |
$ (0.38) |
$ 0.06 |
$ (1.04) |
|||
Consolidated net (loss) income attributable to common stockholders (diluted) |
$ (0.01) |
$ (0.38) |
$ 0.06 |
$ (1.04) |
|||
SELECTED OTHER DATA |
|||||||
Broadcast and internet operating income 1 |
$ 42,957 |
$ 41,728 |
$ 131,527 |
$ 124,413 |
|||
Broadcast and internet operating income margin (% of net revenue) |
38.8% |
36.0% |
38.4% |
36.4% |
|||
Broadcast and internet operating income reconciliation: |
|||||||
Consolidated net (loss) income attributable to common stockholders |
$ (423) |
$ (18,145) |
$ 2,944 |
$ (49,673) |
|||
Add back non-broadcast and internet operating income items included in consolidated net (loss) income: |
|||||||
Interest income |
(51) |
(33) |
(174) |
(68) |
|||
Interest expense |
20,319 |
20,356 |
61,488 |
59,620 |
|||
Provision for income taxes |
4,307 |
4,439 |
8,265 |
22,911 |
|||
Corporate selling, general and administrative expenses |
9,173 |
10,798 |
32,425 |
32,256 |
|||
Stock-based compensation |
782 |
1,016 |
2,319 |
3,795 |
|||
(Gain) loss on retirement of debt |
- |
- |
(2,646) |
7,091 |
|||
Other (income) expense, net |
(22) |
(39) |
(76) |
246 |
|||
Depreciation and amortization |
8,469 |
8,277 |
25,723 |
26,345 |
|||
Noncontrolling interest in income of subsidiaries |
403 |
514 |
1,259 |
7,345 |
|||
Impairment of long-lived assets |
- |
14,545 |
- |
14,545 |
|||
Broadcast and internet operating income |
$ 42,957 |
$ 41,728 |
$ 131,527 |
$ 124,413 |
|||
Adjusted EBITDA5 |
$ 34,883 |
$ 33,025 |
$ 105,549 |
$ 96,559 |
|||
Adjusted EBITDA reconciliation: |
|||||||
Consolidated net (loss) income attributable to common stockholders: |
$ (423) |
$ (18,145) |
$ 2,944 |
$ (49,673) |
|||
Interest income |
(51) |
(33) |
(174) |
(68) |
|||
Interest expense |
20,319 |
20,356 |
61,488 |
59,620 |
|||
Provision for income taxes |
4,307 |
4,439 |
8,265 |
22,911 |
|||
Depreciation and amortization |
8,469 |
8,277 |
25,723 |
26,345 |
|||
EBITDA |
$ 32,621 |
$ 14,894 |
$ 98,246 |
$ 59,135 |
|||
Stock-based compensation |
782 |
1,016 |
2,319 |
3,795 |
|||
(Gain) loss on retirement of debt |
- |
- |
(2,646) |
7,091 |
|||
Other (income) expense, net |
(22) |
(39) |
(76) |
246 |
|||
Noncontrolling interest in income of subsidiaries |
403 |
514 |
1,259 |
7,345 |
|||
Employment Agreement Award and incentive plan award expenses |
1,027 |
961 |
5,802 |
2,423 |
|||
Severance-related costs* |
72 |
1,134 |
645 |
1,979 |
|||
Impairment of long-lived assets |
- |
14,545 |
- |
14,545 |
|||
Adjusted EBITDA |
$ 34,883 |
$ 33,025 |
$ 105,549 |
$ 96,559 |
|||
*The Company has modified the definition of Adjusted EBITDA for the inclusion of severance-related costs. |
|||||||
All prior periods have been reclassified to conform to the current period presentation. |
|||||||
September 30, 2016 |
December 31, 2015 |
|||
(unaudited) |
||||
(in thousands) |
||||
SELECTED BALANCE SHEET DATA: |
||||
Cash and cash equivalents |
$ 72,174 |
$ 67,376 |
||
Intangible assets, net |
1,025,589 |
1,042,956 |
||
Total assets |
1,359,529 |
1,346,524 |
||
Total debt (including current portion, net of original issue discount and issuance costs) |
1,005,783 |
1,024,337 |
||
Total liabilities |
1,413,591 |
1,407,062 |
||
Total deficit |
(66,066) |
(71,824) |
||
Redeemable noncontrolling interest |
12,004 |
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 $9.1 million (subject to variable rates) (a) |
$ 336,494 |
5.14% |
||
9.25% senior subordinated notes due February 2020, net of original issue discount and issuance costs of approximately $2.4 million (fixed rate) |
312,550 |
9.25% |
||
7.375% senior secured notes due April 2022, net of original issue discount and issuance costs of approximately $5.1 million (fixed rate) |
344,867 |
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
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 September 30, |
|||||||||||||
2016 |
2015 |
$ Change |
% Change |
||||||||||
(Unaudited) |
|||||||||||||
(in thousands) |
|||||||||||||
Net Revenue: |
|||||||||||||
Radio Advertising |
$ |
52,475 |
$ |
55,509 |
$ |
(3,034) |
-5.5% |
||||||
Political Advertising |
477 |
413 |
64 |
15.5% |
|||||||||
Digital Advertising |
6,343 |
6,857 |
(514) |
-7.5% |
|||||||||
Cable Television Advertising |
20,831 |
22,069 |
(1,238) |
-5.6% |
|||||||||
Cable Television Affiliate Fees |
25,822 |
25,502 |
320 |
1.3% |
|||||||||
Event Revenues & Other |
4,908 |
5,543 |
(635) |
-11.5% |
|||||||||
Net Revenue (as reported) |
$ |
110,856 |
$ |
115,893 |
$ |
(5,037) |
-4.3% |
Net revenue decreased to approximately
Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, decreased to approximately
Depreciation and amortization expense increased to approximately
During the quarter ended
Interest expense decreased to approximately
The provision for income taxes for the quarter ended
The decrease in noncontrolling interests in income of subsidiaries was due to lower net income generated by Reach Media.
Other pertinent financial information includes capital expenditures of approximately
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited statements of operations for the three and nine months ended
Three Months Ended September 30, 2016 |
|||||||||||||||
(in thousands, unaudited) |
|||||||||||||||
Radio |
Reach |
Cable |
Corporate/ |
||||||||||||
Consolidated |
Broadcasting |
Media |
Internet |
Television |
Eliminations |
||||||||||
STATEMENT OF OPERATIONS: |
|||||||||||||||
NET REVENUE |
$ |
110,856 |
$ |
47,703 |
$ |
12,530 |
$ |
5,374 |
$ |
46,822 |
$ |
(1,573) |
|||
OPERATING EXPENSES: |
|||||||||||||||
Programming and technical |
32,093 |
8,405 |
5,706 |
1,958 |
17,163 |
(1,139) |
|||||||||
Selling, general and administrative |
35,806 |
19,314 |
4,291 |
3,480 |
9,154 |
(433) |
|||||||||
Corporate selling, general and administrative |
9,173 |
- |
415 |
- |
2,279 |
6,479 |
|||||||||
Stock-based compensation |
782 |
49 |
11 |
- |
- |
722 |
|||||||||
Depreciation and amortization |
8,469 |
1,035 |
59 |
417 |
6,559 |
399 |
|||||||||
Total operating expenses |
86,323 |
28,803 |
10,482 |
5,855 |
35,155 |
6,028 |
|||||||||
Operating income (loss) |
24,533 |
18,900 |
2,048 |
(481) |
11,667 |
(7,601) |
|||||||||
INTEREST INCOME |
51 |
- |
- |
- |
- |
51 |
|||||||||
INTEREST EXPENSE |
20,319 |
330 |
- |
- |
1,919 |
18,070 |
|||||||||
OTHER INCOME, net |
(22) |
(16) |
- |
- |
- |
(6) |
|||||||||
Income (loss) before provision for income taxes and noncontrolling interest in income of subsidiaries |
4,287 |
18,586 |
2,048 |
(481) |
9,748 |
(25,614) |
|||||||||
PROVISION FOR INCOME TAXES |
4,307 |
4,211 |
35 |
12 |
49 |
- |
|||||||||
CONSOLIDATED NET (LOSS) INCOME |
(20) |
14,375 |
2,013 |
(493) |
9,699 |
(25,614) |
|||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
403 |
- |
- |
- |
- |
403 |
|||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
(423) |
$ |
14,375 |
$ |
2,013 |
$ |
(493) |
$ |
9,699 |
$ |
(26,017) |
|||
Adjusted EBITDA5 |
$ |
34,883 |
$ |
20,052 |
$ |
2,118 |
$ |
(64) |
$ |
18,230 |
$ |
(5,453) |
Three Months Ended September 30, 2015 |
|||||||||||||||
(in thousands, unaudited, as reclassified2) |
|||||||||||||||
Radio |
Reach |
Cable |
Corporate/ |
||||||||||||
Consolidated |
Broadcasting |
Media |
Internet |
Television |
Eliminations |
||||||||||
STATEMENT OF OPERATIONS: |
|||||||||||||||
NET REVENUE |
$ |
115,893 |
$ |
50,880 |
$ |
13,486 |
$ |
5,503 |
$ |
47,571 |
$ |
(1,547) |
|||
OPERATING EXPENSES: |
|||||||||||||||
Programming and technical |
32,785 |
10,199 |
5,729 |
1,955 |
16,089 |
(1,187) |
|||||||||
Selling, general and administrative |
41,380 |
21,567 |
4,518 |
3,457 |
12,819 |
(981) |
|||||||||
Corporate selling, general and administrative |
10,798 |
- |
814 |
- |
3,079 |
6,905 |
|||||||||
Stock-based compensation |
1,016 |
67 |
- |
15 |
- |
934 |
|||||||||
Depreciation and amortization |
8,277 |
1,145 |
(394) |
446 |
6,554 |
526 |
|||||||||
Impairment of long-lived assets |
14,545 |
- |
- |
14,545 |
- |
- |
|||||||||
Total operating expenses |
108,801 |
32,978 |
10,667 |
20,418 |
38,541 |
6,197 |
|||||||||
Operating income (loss) |
7,092 |
17,902 |
2,819 |
(14,915) |
9,030 |
(7,744) |
|||||||||
INTEREST INCOME |
33 |
- |
- |
- |
- |
33 |
|||||||||
INTEREST EXPENSE |
20,356 |
305 |
- |
- |
1,919 |
18,132 |
|||||||||
OTHER INCOME, net |
(39) |
(3) |
- |
- |
- |
(36) |
|||||||||
(Loss) income before provision for income taxes and noncontrolling interest in income of subsidiaries |
(13,192) |
17,600 |
2,819 |
(14,915) |
7,111 |
(25,807) |
|||||||||
PROVISION FOR INCOME TAXES |
4,439 |
4,385 |
54 |
- |
- |
- |
|||||||||
CONSOLIDATED NET (LOSS) INCOME |
(17,631) |
13,215 |
2,765 |
(14,915) |
7,111 |
(25,807) |
|||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
514 |
- |
- |
- |
- |
514 |
|||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
(18,145) |
$ |
13,215 |
$ |
2,765 |
$ |
(14,915) |
$ |
7,111 |
$ |
(26,321) |
|||
Adjusted EBITDA5 |
$ |
33,025 |
$ |
19,289 |
$ |
2,425 |
$ |
130 |
$ |
15,946 |
$ |
(4,765) |
|||
Nine Months Ended September 30, 2016 |
|||||||||||||||
(in thousands, unaudited) |
|||||||||||||||
Radio |
Reach |
Cable |
Corporate/ |
||||||||||||
Consolidated |
Broadcasting |
Media |
Internet |
Television |
Eliminations |
||||||||||
STATEMENT OF OPERATIONS: |
|||||||||||||||
NET REVENUE |
$ |
342,663 |
$ |
145,597 |
$ |
42,328 |
$ |
15,668 |
$ |
143,858 |
$ |
(4,788) |
|||
OPERATING EXPENSES: |
|||||||||||||||
Programming and technical |
96,789 |
28,374 |
17,284 |
5,653 |
48,896 |
(3,418) |
|||||||||
Selling, general and administrative |
114,347 |
60,200 |
16,010 |
10,110 |
29,398 |
(1,371) |
|||||||||
Corporate selling, general and administrative |
32,425 |
- |
2,491 |
- |
7,594 |
22,340 |
|||||||||
Stock-based compensation |
2,319 |
188 |
31 |
6 |
- |
2,094 |
|||||||||
Depreciation and amortization |
25,723 |
3,256 |
148 |
1,299 |
19,664 |
1,356 |
|||||||||
Total operating expenses |
271,603 |
92,018 |
35,964 |
17,068 |
105,552 |
21,001 |
|||||||||
Operating income (loss) |
71,060 |
53,579 |
6,364 |
(1,400) |
38,306 |
(25,789) |
|||||||||
INTEREST INCOME |
174 |
- |
- |
- |
- |
174 |
|||||||||
INTEREST EXPENSE |
61,488 |
1,001 |
- |
- |
5,756 |
54,731 |
|||||||||
GAIN ON RETIREMENT OF DEBT |
2,646 |
- |
- |
- |
- |
2,646 |
|||||||||
OTHER INCOME, net |
(76) |
(22) |
- |
- |
- |
(54) |
|||||||||
Income (loss) before provision for income taxes and noncontrolling interest in income of subsidiaries |
12,468 |
52,600 |
6,364 |
(1,400) |
32,550 |
(77,646) |
|||||||||
PROVISION FOR INCOME TAXES |
8,265 |
8,056 |
109 |
32 |
68 |
- |
|||||||||
CONSOLIDATED NET INCOME (LOSS ) |
4,203 |
44,544 |
6,255 |
(1,432) |
32,482 |
(77,646) |
|||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
1,259 |
- |
- |
- |
- |
1,259 |
|||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
2,944 |
$ |
44,544 |
$ |
6,255 |
$ |
(1,432) |
$ |
32,482 |
$ |
(78,905) |
|||
Adjusted EBITDA5 |
$ |
105,549 |
$ |
57,563 |
$ |
6,605 |
$ |
(86) |
$ |
57,970 |
$ |
(16,503) |
|||
Nine Months Ended September 30, 2015 |
|||||||||||||||
(in thousands, unaudited, as reclassified2) |
|||||||||||||||
Radio |
Reach |
Cable |
Corporate/ |
||||||||||||
Consolidated |
Broadcasting |
Media |
Internet |
Television |
Eliminations |
||||||||||
STATEMENT OF OPERATIONS: |
|||||||||||||||
NET REVENUE |
$ |
341,477 |
$ |
149,093 |
$ |
42,508 |
$ |
15,763 |
$ |
138,898 |
$ |
(4,785) |
|||
OPERATING EXPENSES: |
|||||||||||||||
Programming and technical |
98,667 |
30,645 |
17,000 |
6,255 |
48,270 |
(3,503) |
|||||||||
Selling, general and administrative |
118,397 |
66,030 |
15,910 |
10,034 |
29,563 |
(3,140) |
|||||||||
Corporate selling, general and administrative |
32,256 |
- |
3,131 |
- |
9,515 |
19,610 |
|||||||||
Stock-based compensation |
3,795 |
206 |
- |
53 |
- |
3,536 |
|||||||||
Depreciation and amortization |
26,345 |
3,469 |
137 |
1,559 |
19,600 |
1,580 |
|||||||||
Impairment of long-lived assets |
14,545 |
- |
- |
14,545 |
- |
- |
|||||||||
Total operating expenses |
294,005 |
100,350 |
36,178 |
32,446 |
106,948 |
18,083 |
|||||||||
Operating income (loss) |
47,472 |
48,743 |
6,330 |
(16,683) |
31,950 |
(22,868) |
|||||||||
INTEREST INCOME |
68 |
- |
- |
- |
(93) |
161 |
|||||||||
INTEREST EXPENSE |
59,620 |
915 |
- |
- |
7,212 |
51,493 |
|||||||||
LOSS ON RETIREMENT OF DEBT |
(7,091) |
- |
- |
- |
- |
(7,091) |
|||||||||
OTHER EXPENSE, net |
246 |
52 |
- |
- |
92 |
102 |
|||||||||
(Loss) income before provision for income taxes and noncontrolling interest in income of subsidiaries |
(19,417) |
47,776 |
6,330 |
(16,683) |
24,553 |
(81,393) |
|||||||||
PROVISION FOR INCOME TAXES |
22,911 |
22,796 |
115 |
- |
- |
- |
|||||||||
CONSOLIDATED NET (LOSS) INCOME |
(42,328) |
24,980 |
6,215 |
(16,683) |
24,553 |
(81,393) |
|||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
7,345 |
- |
- |
- |
- |
7,345 |
|||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
(49,673) |
$ |
24,980 |
$ |
6,215 |
$ |
(16,683) |
$ |
24,553 |
$ |
(88,738) |
|||
Adjusted EBITDA5 |
$ |
96,559 |
$ |
53,254 |
$ |
6,470 |
$ |
(451) |
$ |
52,049 |
$ |
(14,763) |
A replay of the conference call will be available from
Beyond its core radio broadcasting franchise,
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
4 For the three months ended
5 "Adjusted EBITDA" consists of net loss plus (1) depreciation, amortization, income taxes, interest expense, noncontrolling interest in income of subsidiaries, impairment of long-lived assets, stock-based compensation, (gain) loss on retirement of debt, Employment Agreement and incentive plan award expenses, severance-related costs, less (2) other income and interest income. Net income before interest income, interest expense, income taxes, depreciation and amortization is commonly referred to in our business as "EBITDA." Adjusted EBITDA and EBITDA are not measures of financial performance under generally accepted accounting principles. However, we believe Adjusted EBITDA is often a useful measure of a company's operating performance and is a significant 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.
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SOURCE
Peter D. Thompson, EVP and CFO, (301) 429-4638