form8-knovember182014.htm

 
 
 


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report: November 12, 2014 (Date of earliest event reported)

Commission File No.: 0-25969

RADIO ONE, INC.
(Exact name of registrant as specified in its charter)
     
Delaware
(State or other jurisdiction of
incorporation or organization)
 
52-1166660
(I.R.S. Employer Identification No.)

1010 Wayne Avenue
14th Floor
Silver Spring, Maryland 20910
(Address of principal executive offices)

(301) 429-3200
Registrant’s telephone number, including area code


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     
o
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     
o
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     
o
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 
 
 
 
 
 


 
 

 


 
ITEM 2.02.    Results of Operations and Financial Condition.

The Company also issued a press release setting forth the results for its quarter ended September 30, 2014.  A copy of the press release is attached as Exhibit 99.1.


ITEM 9.01.   Financial Statements and Exhibits.

(c) Exhibits
     
Exhibit Number
 
Description
     
99.1
 
 
 
 
Press release dated November 12, 2014: Radio One, Inc. Reports Third Quarter Results.

 




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
           
   
RADIO ONE, INC.
   
   
 
/s/ Peter D. Thompson
   
 
November 18, 2014
 
 
Peter D. Thompson
   
   
Chief Financial Officer and Principal Accounting Officer
 
   
 
 
 
 
 

 

 
 

 

pressreleasenovember122014.htm
NEWS RELEASE
November 12, 2014                                                                                     Contact: Peter D. Thompson, EVP and CFO
FOR IMMEDIATE RELEASE                                                                     (301) 429-4638
Washington, DC


RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS


Washington, DC: - Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended September 30, 2014.  Net revenue was approximately $112.2 million, a decrease of 5.3% from the same period in 2013.  Station operating income1 was approximately $38.6 million, a decrease of 13.8% from the same period in 2013. The Company reported operating income of approximately $19.6 million for the three months ended September 30, 2014, compared to operating income of $21.8 million for the same period in 2013. Net loss was approximately $13.2 million or $0.28 per share for each of the quarters ending September 30, 2014 and 2013.

Alfred C. Liggins, III, Radio One’s President and CEO stated, “Our radio business experienced a very soft quarter: we had a perfect storm of weak market revenues and soft ratings in our four largest markets, and political revenues were less than anticipated. We had some ratings challenges in Washington DC, Baltimore and Atlanta in addition to the new competitor in Houston. Management has taken steps to remedy these issues, including a format change in Houston from News to Classic Hip-hop. The initial ratings for our new station, Boom 92, are extremely encouraging, and should mean we reverse the annual $1.5 million of losses that we were incurring on the news format. Outside our top four markets, radio revenues for the third quarter were +1.5% against a flat market. Overall Q4 radio revenue is currently pacing –1.9% and I believe we will have positive momentum going into the new year. Reach Media experienced a similarly weak third quarter, but is performing better in 4th quarter, consistent with the radio division. Both our Internet and Cable Television segments showed improved adjusted EBITDA2 and margins compared to the prior year.”

 
 
 
 
 
 
 
 
 

 


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PAGE 2 -- RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS


RESULTS OF OPERATIONS
 
                     
                       
 
Three Months Ended September 30,
   
Nine Months Ended September 30,
 
 
2014
   
2013
   
2014
   
2013
 
STATEMENT OF OPERATIONS
(unaudited)
   
(unaudited)
 
 
(in thousands, except share data)
   
(in thousands, except share data)
 
                       
NET REVENUE
$ 112,171     $ 118,391     $ 331,657     $ 337,105  
OPERATING EXPENSES
                             
Programming and technical, excluding stock-based compensation
  36,520       37,176       105,712       100,649  
Selling, general and administrative, excluding stock-based compensation
  37,006       36,400       111,064       110,143  
Corporate selling, general and administrative, excluding stock-based compensation
  9,845       9,684       29,284       27,107  
Stock-based compensation
  61       55       171       145  
Depreciation and amortization
  9,179       9,571       27,685       28,600  
Impairment of long-lived assets
  -       3,710       -       14,880  
Total operating expenses
  92,611       96,596       273,916       281,524  
    Operating income
  19,560       21,795       57,741       55,581  
INTEREST INCOME
  40       23       174       165  
INTEREST EXPENSE
  19,350       22,336       60,468       66,811  
LOSS ON RETIREMENT OF DEBT
  -       -       5,679       -  
OTHER (INCOME) EXPENSE, net
  (29 )     (29 )     16       (99 )
    Income (loss) before provision for income taxes, noncontrolling
            interest in income of subsidiaries and income from
            discontinued operations
  279       (489 )     (8,248 )     (10,966 )
PROVISION FOR INCOME TAXES
  9,037       8,415       26,220       19,798  
    Net loss from continuing operations
  (8,758 )     (8,904 )     (34,468 )     (30,764 )
INCOME FROM DISCONTINUED OPERATIONS, net of tax
  -       -       -       893  
CONSOLIDATED NET LOSS
  (8,758 )     (8,904 )     (34,468 )     (29,871 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
  4,462       4,317       14,751       15,670  
CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS
$ (13,220 )   $ (13,221 )   $ (49,219 )   $ (45,541 )
                               
AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS
                             
NET LOSS FROM CONTINUING OPERATIONS
$ (13,220 )   $ (13,221 )   $ (49,219 )   $ (46,434 )
INCOME FROM DISCONTINUED OPERATIONS, net of tax
  -       -       -       893  
CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS
$ (13,220 )   $ (13,221 )   $ (49,219 )   $ (45,541 )
                               
Weighted average shares outstanding - basic3
  47,601,371       47,443,031       47,502,733       48,680,979  
Weighted average shares outstanding - diluted4
  47,601,371       47,443,031       47,502,733       48,680,979  


 


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PAGE 3 -- RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS
 
                       
 
Three Months Ended September 30,
   
Nine Months Ended September 30,
 
 
2014
   
2013
   
2014
   
2013
 
PER SHARE DATA - basic and diluted:
(unaudited)
   
(unaudited)
 
 
(in thousands, except per share data)
   
(in thousands, except per share data)
 
                       
Net loss from continuing operations (basic)
$ (0.28 )   $ (0.28 )   $ (1.04 )   $ (0.95 )
Income from discontinued operations, net of tax (basic)
  0.00       0.00       0.00       0.02  
Consolidated net loss attributable to common stockholders (basic)
$ (0.28 )   $ (0.28 )   $ (1.04 )   $ (0.94 )*
                               
Net loss from continuing operations (diluted)
$ (0.28 )   $ (0.28 )   $ (1.04 )   $ (0.95 )
Income from discontinued operations, net of tax (diluted)
  0.00       0.00       0.00       0.02  
Consolidated net loss attributable to common stockholders (diluted)
$ (0.28 )   $ (0.28 )   $ (1.04 )   $ (0.94 )*
                               
SELECTED OTHER DATA
                             
Station operating income 1
$ 38,645     $ 44,815     $ 114,881     $ 126,313  
Station operating income margin (% of net revenue)
  34.5 %     37.9 %     34.6 %     37.5 %
                               
Station operating income reconciliation:
                             
                                 
     Consolidated net loss attributable to common stockholders
$ (13,220 )   $ (13,221 )   $ (49,219 )   $ (45,541 )
     Add back non-station operating income items included in
     consolidated net loss:
                 
          Interest income
  (40 )     (23 )     (174 )     (165 )
          Interest expense
  19,350       22,336       60,468       66,811  
          Provision for income taxes
  9,037       8,415       26,220       19,798  
          Corporate selling, general and administrative expenses
  9,845       9,684       29,284       27,107  
          Stock-based compensation
  61       55       171       145  
          Loss on retirement of debt
  -       -       5,679       -  
          Other (income) expense, net
  (29 )     (29 )     16       (99 )
          Depreciation and amortization
  9,179       9,571       27,685       28,600  
          Noncontrolling interest in income of subsidiaries
  4,462       4,317       14,751       15,670  
          Impairment of long-lived assets
  -       3,710       -       14,880  
          Income from discontinued operations, net of tax
  -       -       -       (893 )
          Station operating income
$ 38,645     $ 44,815     $ 114,881     $ 126,313  
                               
Adjusted EBITDA2
$ 28,800     $ 35,131     $ 85,597     $ 99,206  
                               
Adjusted EBITDA reconciliation:
                             
                               
     Consolidated net loss attributable to common stockholders
$ (13,220 )   $ (13,221 )   $ (49,219 )   $ (45,541 )
          Interest income
  (40 )     (23 )     (174 )     (165 )
          Interest expense
  19,350       22,336       60,468       66,811  
          Provision for income taxes
  9,037       8,415       26,220       19,798  
          Depreciation and amortization
  9,179       9,571       27,685       28,600  
          EBITDA
$ 24,306     $ 27,078     $ 64,980     $ 69,503  
          Stock-based compensation
  61       55       171       145  
          Loss on retirement of debt
  -       -       5,679       -  
          Other (income) expense, net
  (29 )     (29 )     16       (99 )
          Noncontrolling interest in income of subsidiaries
  4,462       4,317       14,751       15,670  
          Impairment of long-lived assets
  -       3,710       -       14,880  
          Income from discontinued operations, net of tax
  -       -       -       (893 )
          Adjusted EBITDA
$ 28,800     $ 35,131     $ 85,597     $ 99,206  
                               
*Per share amounts do not add due to rounding
                             
 
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PAGE 4 -- RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS


 
September 30, 2014
 
December 31, 2013
 
 
(unaudited)
     
 
(in thousands)
 
SELECTED BALANCE SHEET DATA:
       
Cash and cash equivalents
$ 55,080   $ 56,676  
Intangible assets, net
  1,127,090     1,147,017  
Total assets
  1,391,639     1,414,355  
Total debt (including current portion)
  820,843     815,635  
Total liabilities
  1,146,834     1,117,381  
Total equity
  236,252     284,975  
Redeemable noncontrolling interest
  8,553     11,999  
Noncontrolling interest
  203,660     207,026  
             
 
Current Amount Outstanding
 
Applicable Interest Rate
 
 
(in thousands)
       
SELECTED LEVERAGE DATA:
           
Senior bank term debt, net of original issue discount of approximately $2.6 million
(subject to variable rates) (a)
$ 366,843     7.50 %
9.25% senior subordinated notes due February 2020 (fixed rate)
  335,000     9.25 %
10% Senior Secured TV One Notes due March 2016 (fixed rate)
  119,000     10.00 %

(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.













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PAGE 5 -- RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS

 
Net revenue decreased to approximately $112.2 million for the quarter ended September 30, 2014, from approximately $118.4 million for the same period in 2013, a decrease of 5.3%, resulting primarily from declines in our four largest radio markets. Net revenues from our radio broadcasting segment decreased 8.1% for the quarter ended September 30, 2014, versus the same period in 2013. We experienced net revenue growth most significantly in our Charlotte, Dallas and Detroit markets, countered by our Atlanta, Baltimore, Houston, Philadelphia, Richmond, St. Louis and Washington DC markets experiencing the most significant declines. Reach Media’s net revenues decreased 19.3% for the quarter ended September 30, 2014, compared to the same period in 2013 due to a mix of customer turnover and lower rates. We recognized approximately $39.5 million of revenue from our cable television segment during the three months ended September 30, 2014, compared to approximately $37.8 million for the same period in 2013, the increase of approximately $1.7 million due primarily from an increase in both affiliate and advertising sales. Finally, net revenues for our internet business decreased 4.9% for the three months ended September 30, 2014, compared to the same period in 2013 due to a decrease in direct revenues.
 
Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $83.4 million for the quarter ended September 30, 2014, up 0.1% from the approximately $83.3 million incurred for the comparable quarter in 2013.

Depreciation and amortization expense decreased 4.1% to approximately $9.2 million compared to approximately $9.6 million for the quarters ended September 30, 2014 and 2013, respectively. The decrease was due to the completion of amortization for certain intangible assets and the completion of useful lives for certain assets.

There was no impairment of long-lived assets for the three months ended September 30, 2014.  Impairment of long-lived assets for the three months ended September 30, 2013, was approximately $3.7 million and related to a non-cash impairment charge recorded to reduce the carrying value of our Cleveland and Boston radio broadcasting licenses.

Interest expense decreased to approximately $19.4 million for the quarter ended September 30, 2014, compared to approximately $22.3 million for the same period in 2013. The primary driver of the decrease in interest expense is the lower interest rate associated with the 2020 Notes, compared to the 2016 Notes which were settled during the first quarter of 2014. The Company made cash interest payments of approximately $26.3 million on all outstanding instruments for the quarter ended September 30, 2014, compared to cash interest payments of approximately $20.9 million for the quarter ended September 30, 2013. Cash interest payments associated with the 2020 Notes began August 15, 2014.

The provision for income taxes for the quarter ended September 30, 2014, was approximately $9.0 million compared to approximately $8.4 million for the comparable period in 2013, primarily attributable to the deferred tax liability (“DTL”) for indefinite-lived intangible assets. The increase in tax provision is primarily due to provision to return adjustments. The Company paid $117,000 and $221,000 for income taxes for the quarters ended September 30, 2014 and 2013, respectively.

The increase in noncontrolling interests in income of subsidiaries is due primarily to greater net income generated by TV One during the three months ended September 30, 2014, compared to the 2013 period.  Reach Media generated lower net income during the three months ended September 30, 2014, compared to the 2013 period, which partially offset the income generated by TV One.


 

 


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PAGE 6 -- RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS

 
Other pertinent financial information includes capital expenditures of approximately $1.3 million for each of the quarters ended September 30, 2014 and 2013, respectively.  The Company received dividends from TV One in the amount of approximately $8.9 million and $6.2 million for the quarters ended September 30, 2014 and 2013, respectively. As of September 30, 2014, the Company had total debt (net of cash balances) of approximately $765.8 million. The Company’s cash and cash equivalents by segment are as follows:  Radio and Internet, approximately $32.7 million; Reach Media, approximately $3.4 million; and Cable Television, approximately $19.0 million. In addition to cash and cash equivalents, the cable television segment also has short-term investments of approximately $2.1 million and long-term investments of $803,000. During the three months ended September 30, 2013, the Company repurchased 512,300 shares of Class D common stock in the amount of approximately $1.2 million and 1,100 shares of Class A common stock in the amount of $3,000. During the nine months ended September 30, 2013, the Company repurchased 2,630,574 shares of Class D common stock in the amount of approximately $5.4 million and 32,669 shares of Class A common stock in the amount of $71,000. There were no stock repurchases made during the three or nine month periods ended September 30, 2014.




 
Supplemental Financial Information:
 
For comparative purposes, the following more detailed, unaudited statements of operations for the three and nine months ended September 30, 2014 and 2013 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.

























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PAGE 7 -- RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS

 
   
Three Months Ended September 30, 2014
 
   
(in thousands, unaudited)
 
                                     
                                 
Corporate/
 
         
Radio
   
Reach
         
Cable
   
Eliminations/
 
   
Consolidated
   
Broadcasting
   
Media
   
Internet
   
Television
   
Other
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 112,171     $ 54,498     $ 13,618     $ 5,822     $ 39,488     $ (1,255 )
OPERATING EXPENSES:
                                               
Programming and technical
    36,520       11,185       8,018       2,239       16,565       (1,487 )
Selling, general and administrative
    37,006       21,288       4,088       3,133       8,947       (450 )
Corporate selling, general and administrative
    9,845       -       1,200       -       1,583       7,062  
Stock-based compensation
    61       5       -       -       -       56  
Depreciation and amortization
    9,179       1,241       285       598       6,523       532  
Total operating expenses
    92,611       33,719       13,591       5,970       33,618       5,713  
      Operating income (loss)
    19,560       20,779       27       (148 )     5,870       (6,968 )
INTEREST INCOME
    40       -       -       -       13       27  
INTEREST EXPENSE
    19,350       255       -       -       3,039       16,056  
OTHER INCOME, net
    (29 )     -       -       -       -       (29 )
Income (loss) before provision for income taxes, noncontrolling interest in income of subsidiaries and income from discontinued operations
    279       20,524       27       (148 )     2,844       (22,968 )
PROVISION FOR INCOME TAXES
    9,037       9,014       23       -       -       -  
Net (loss) income from continuing operations
    (8,758 )     11,510       4       (148 )     2,844       (22,968 )
INCOME FROM DISCONTINUED OPERATIONS, net of tax
    -       -       -       -       -       -  
CONSOLIDATED NET (LOSS) INCOME
    (8,758 )     11,510       4       (148 )     2,844       (22,968 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    4,462       -       -       -       -       4,462  
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ (13,220 )   $ 11,510     $ 4     $ (148 )   $ 2,844     $ (27,430 )
                                                 
Adjusted EBITDA2
  $ 28,800     $ 22,025     $ 312     $ 450     $ 12,393     $ (6,380 )

 
 

 
 

 
 

 
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PAGE 8 -- RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS

 
   
Three Months Ended September 30, 2013
 
   
(in thousands, unaudited)
 
                                     
                                 
Corporate/
 
         
Radio
   
Reach
         
Cable
   
Eliminations/
 
   
Consolidated
   
Broadcasting
   
Media
   
Internet
   
Television
   
Other
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 118,391     $ 59,281     $ 16,872     $ 6,125     $ 37,786     $ (1,673 )
OPERATING EXPENSES:
                                               
Programming and technical
    37,176       10,946       8,088       2,160       17,541       (1,559 )
Selling, general and administrative
    36,400       21,074       4,445       3,948       7,260       (327 )
Corporate selling, general and administrative
    9,684       -       1,168       -       1,669       6,847  
Stock-based compensation
    55       14       -       -       -       41  
Depreciation and amortization
    9,571       1,645       310       588       6,555       473  
Impairment of long-lived assets
    3,710       3,710       -       -       -       -  
Total operating expenses
    96,596       37,389       14,011       6,696       33,025       5,475  
     Operating income (loss)
    21,795       21,892       2,861       (571 )     4,761       (7,148 )
INTEREST INCOME
    23       -       -       -       17       6  
INTEREST EXPENSE
    22,336       303       -       -       3,039       18,994  
OTHER INCOME, net
    (29 )     -       -       -       -       (29 )
(Loss) income before provision for income taxes, noncontrolling interest in income of subsidiaries and income from discontinued operations
    (489 )     21,589       2,861       (571 )     1,739       (26,107 )
PROVISION FOR INCOME TAXES
    8,415       7,387       1,028       -       -       -  
Net (loss) income from continuing operations
    (8,904 )     14,202       1,833       (571 )     1,739       (26,107 )
INCOME FROM DISCONTINUED OPERATIONS, net of tax
    -       -       -       -       -       -  
CONSOLIDATED NET (LOSS) INCOME
    (8,904 )     14,202       1,833       (571 )     1,739       (26,107 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    4,317       -       -       -       -       4,317  
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ (13,221 )   $ 14,202     $ 1,833     $ (571 )   $ 1,739     $ (30,424 )
                                                 
Adjusted EBITDA2
  $ 35,131     $ 27,261     $ 3,171     $ 17     $ 11,316     $ (6,634 )


 
 

 
 

 
 
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PAGE 9 -- RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS

 
   
Nine Months Ended September 30, 2014
 
   
(in thousands, unaudited)
 
                                     
                                 
Corporate/
 
         
Radio
   
Reach
         
Cable
   
Eliminations/
 
   
Consolidated
   
Broadcasting
   
Media
   
Internet
   
Television
   
Other
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 331,657     $ 159,906     $ 40,433     $ 18,175     $ 117,166     $ (4,023 )
OPERATING EXPENSES:
                                               
Programming and technical
    105,712       32,758       23,899       6,949       46,312       (4,206 )
Selling, general and administrative
    111,064       64,421       12,762       10,468       25,051       (1,638 )
Corporate selling, general and administrative
    29,284       -       3,566       -       5,532       20,186  
Stock-based compensation
    171       15       -       -       -       156  
Depreciation and amortization
    27,685       3,832       862       1,830       19,597       1,564  
Total operating expenses
    273,916       101,026       41,089       19,247       96,492       16,062  
      Operating income (loss)
    57,741       58,880       (656 )     (1,072 )     20,674       (20,085 )
INTEREST INCOME
    174       -       -       -       40       134  
INTEREST EXPENSE
    60,468       860       -       -       9,117       50,491  
LOSS ON RETIREMENT OF DEBT
    5,679       -       -       -       -       5,679  
OTHER EXPENSE (INCOME), net
    16       (1 )     -       -       96       (79 )
(Loss) income before provision for income taxes, noncontrolling interest in income of subsidiaries and income from discontinued operations
    (8,248 )     58,021       (656 )     (1,072 )     11,501       (76,042 )
PROVISION FOR INCOME TAXES
    26,220       26,174       46       -       -       -  
Net (loss) income from continuing operations
    (34,468 )     31,847       (702 )     (1,072 )     11,501       (76,042 )
INCOME FROM DISCONTINUED OPERATIONS, net of tax
    -       -       -       -       -       -  
CONSOLIDATED NET (LOSS) INCOME
    (34,468 )     31,847       (702 )     (1,072 )     11,501       (76,042 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    14,751       -       -       -       -       14,751  
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ (49,219 )   $ 31,847     $ (702 )   $ (1,072 )   $ 11,501     $ (90,793 )
                                                 
Adjusted EBITDA2
  $ 85,597     $ 62,727     $ 206     $ 758     $ 40,271     $ (18,365 )









 
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PAGE 10 -- RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS

 
   
Nine Months Ended September 30, 2013
 
   
(in thousands, unaudited)
 
                                     
                                 
Corporate/
 
         
Radio
   
Reach
         
Cable
   
Eliminations/
 
   
Consolidated
   
Broadcasting
   
Media
   
Internet
   
Television
   
Other
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 337,105     $ 167,898     $ 44,428     $ 17,612     $ 111,506     $ (4,339 )
OPERATING EXPENSES:
                                               
Programming and technical
    100,649       32,690       23,003       6,142       42,873       (4,059 )
Selling, general and administrative
    110,143       63,938       13,762       11,445       21,927       (929 )
Corporate selling, general and administrative
    27,107       -       3,382       -       5,899       17,826  
Stock-based compensation
    145       38       -       -       -       107  
Depreciation and amortization
    28,600       4,720       950       1,902       19,773       1,255  
Impairment of long-lived assets
    14,880       14,880       -       -       -       -  
Total operating expenses
    281,524       116,266       41,097       19,489       90,472       14,200  
     Operating income (loss)
    55,581       51,632       3,331       (1,877 )     21,034       (18,539 )
INTEREST INCOME
    165       -       -       -       44       121  
INTEREST EXPENSE
    66,811       888       -       -       9,117       56,806  
OTHER INCOME,  net
    (99 )     (11 )     -       -       -       (88 )
(Loss) income before provision for income taxes, noncontrolling interest in income of subsidiaries and income from discontinued operations
    (10,966 )     50,755       3,331       (1,877 )     11,961       (75,136 )
PROVISION FOR INCOME TAXES
    19,798       18,298       1,500       -       -       -  
Net (loss) income from continuing operations
    (30,764 )     32,457       1,831       (1,877 )     11,961       (75,136 )
INCOME FROM DISCONTINUED OPERATIONS, net of tax
    893       893       -       -       -       -  
CONSOLIDATED NET (LOSS) INCOME
    (29,871 )     33,350       1,831       (1,877 )     11,961       (75,136 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    15,670       -       -       -       -       15,670  
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ (45,541 )   $ 33,350     $ 1,831     $ (1,877 )   $ 11,961     $ (90,806 )
                                                 
Adjusted EBITDA2
  $ 99,206     $ 71,270     $ 4,281     $ 25     $ 40,807     $ (17,177 )




 

 
 
 
 
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PAGE 11 -- RADIO ONE, INC. REPORTS THIRD QUARTER RESULTS

 
Radio One, Inc. will hold a conference call to discuss its results for third fiscal quarter of 2014. This conference call is scheduled for Wednesday, November 12, 2014 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-800-288-8967; international callers may dial direct (+1) 612-332-0345.

A replay of the conference call will be available from 12:00 p.m. EST November 12, 2014 until 11:59 p.m. EST November 14, 2014. 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 337345. 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., together with its subsidiaries (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 and/or operating 54 broadcast stations located in 16 urban markets in the United States. Through its controlling interest in Reach Media, Inc. (http://www.blackamericaweb.com/), the Company also operates syndicated programming including the Tom Joyner Morning Show, the Rickey Smiley Morning Show, the Yolanda Adams Morning Show, the Russ Parr 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 (http://www.interactiveone.com/), an online platform serving the African-American community through social content, news, information, and entertainment. Interactive One operates a number of branded sites, including News One, UrbanDaily, HelloBeautiful and social networking websites, including BlackPlanet and MiGente. 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 station operating income is a significant basis used by our management to measure the operating performance of our stations within the various markets because station operating income provides helpful information about our results of operations apart from expenses associated with our fixed assets and long-lived intangible assets, income taxes, investments, debt financings and retirements, overhead, stock-based compensation, impairment charges, and asset sales. Our measure of station operating income may not be comparable to similarly titled measures of other companies as our definition includes the results of all four segments (Radio Broadcasting, Reach Media, Internet and Cable Television). Station operating income does not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as an alternative to those measurements as an indicator of our performance. A reconciliation of net income (loss) to station operating income has been provided in this release.

2           “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. However, we believe Adjusted EBITDA is often a useful measure of a company’s operating performance and is a significant basis used by our management to measure the operating performance of our business because Adjusted EBITDA excludes charges for depreciation, amortization and interest expense that have resulted from our acquisitions and debt financing, our taxes, impairment charges, 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 as 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.

3           For the three months ended September 30, 2014 and 2013, Radio One had 47,601,371 and 47,443,031 shares of common stock outstanding on a weighted average basis (basic), respectively.  For the nine months ended September 30, 2014 and 2013, Radio One had 47,502,733 and 48,680,979 shares of common stock outstanding on a weighted average basis (basic), respectively.

4           For the three months ended September 30, 2014 and 2013, Radio One had 47,601,371 and 47,443,031 shares of common stock outstanding on a weighted average basis (fully diluted), for outstanding stock options, respectively.  For the nine months ended September 30, 2014 and 2013, Radio One had 47,502,733 and 48,680,979 shares of common stock outstanding on a weighted average basis (fully diluted), for outstanding stock options, respectively.