Radio One, Inc. Reports Second Quarter Results
(Logo: http://www.newscom.com/cgi-bin/prnh/20090806/PH57529LOGO )
RESULTS OF OPERATIONS
---------------------
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
STATEMENT OF OPERATIONS (unaudited)
-----------
(in thousands, except share data)
---------------------------------
NET REVENUE $70,083 $83,432 $130,754 $155,930
OPERATING EXPENSES:
Programming
and technical 19,225 20,764 39,811 39,796
Selling, general
and administrative 21,305 27,489 44,879 52,007
Corporate selling,
general and
administrative 5,199 17,551 10,332 23,958
Stock-based compensation 596 629 1,079 957
Depreciation and
amortization 5,259 5,171 10,514 8,835
Impairment of
long-lived assets - - 48,953 -
--- --- ------ ---
Total operating
expenses 51,584 71,604 155,568 125,553
------ ------ ------- -------
Operating
Income (Loss) 18,499 11,828 (24,814) 30,377
INTEREST INCOME (47) (130) (65) (331)
INTEREST EXPENSE 9,033 15,160 19,812 32,419
GAIN ON RETIREMENT
OF DEBT - (1,015) (1,221) (1,015)
EQUITY IN (INCOME)
LOSS OF AFFILIATED
COMPANY (747) (29) (1,897) 2,799
OTHER EXPENSE, net 114 33 64 44
--- -- -- --
Income (loss) before
provision for income
taxes, noncontrolling
interest in income of
subsidiaries and
discontinued operations 10,146 (2,191) (41,507) (3,539)
PROVISION FOR
INCOME TAXES 1,777 9,761 8,848 18,659
----- ----- ----- ------
Net income (loss) from
continuing operations 8,369 (11,952) (50,355) (22,198)
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of tax (89) 1,334 69 (6,447)
--- ----- -- ------
CONSOLIDATED NET
INCOME (LOSS) 8,280 (10,618) (50,286) (28,645)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES 1,067 1,058 1,938 1,881
----- ----- ----- -----
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON STOCKHOLDERS $7,213 $(11,676) $(52,224) $(30,526)
====== ======== ======== ========
AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
NET INCOME (LOSS) FROM
CONTINUING OPERATIONS $7,302 $(13,010) $(52,293) $(24,079)
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of tax (89) 1,334 69 (6,447)
--- ----- -- ------
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON STOCKHOLDERS $7,213 $(11,676) $(52,224) $(30,526)
====== ======== ======== ========
Weighted average shares
outstanding - basic(2) 59,421,562 98,403,298 64,920,155 98,560,790
Weighted average shares
outstanding -
diluted(3) 60,034,168 98,403,298 64,920,155 98,560,790
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
(unaudited)
-----------
(in thousands, except per share data)
-------------------------------------
PER SHARE DATA - basic and diluted:
Income (loss) from continuing
operations (basic) $0.12 $(0.13) $(0.81)* $(0.24)
Income (loss) from discontinued
operations (basic) 0.00 0.01 0.00* (0.07)
---- ---- ---- -----
Net income (loss) attributable
to common stockholders
(basic) $0.12 $(0.12) $(0.80)* $(0.31)
===== ====== ====== ======
Income (loss) from continuing
operations (diluted) $0.12 $(0.13) $(0.81)* $(0.24)
Income (loss) from discontinued
operations (diluted) 0.00 0.01 0.00* (0.07)
---- ---- ---- -----
Net income (loss) attributable
to common stockholders
(diluted) $0.12 $(0.12) $(0.80)* $(0.31)
===== ====== ====== ======
SELECTED OTHER DATA
Station operating income(1) $29,553 $35,179 $46,064 $64,127
Station operating income
margin (% of net revenue) 42.2% 42.2% 35.2% 41.1%
Station operating income
reconciliation:
Net income (loss) attributable
to common stockholders $7,213 $(11,676) $(52,224) $(30,526)
Plus: Depreciation
and amortization 5,259 5,171 10,514 8,835
Plus: Corporate selling,
general and administrative
expenses 5,199 17,551 10,332 23,958
Plus: Stock-based
compensation 596 629 1,079 957
Plus: Equity in (income)
loss of affiliated company (747) (29) (1,897) 2,799
Plus: Provision for
income taxes 1,777 9,761 8,848 18,659
Plus: Noncontrolling
interest in income
of subsidiaries 1,067 1,058 1,938 1,881
Plus: Interest expense 9,033 15,160 19,812 32,419
Plus: Impairment of
long-lived assets - - 48,953 -
Plus: Other expense 114 33 64 44
Plus: Loss (income) loss
from discontinued
operations, net of tax 89 (1,334) (69) 6,447
Less: Gain on retirement
of debt - (1,015) (1,221) (1,015)
Less: Interest income (47) (130) (65) (331)
--- ---- --- ----
Station operating
income $29,553 $35,179 $46,064 $64,127
======= ======= ======= =======
Adjusted EBITDA(4) $24,354 $17,628 $35,732 $40,169
Adjusted EBITDA reconciliation:
Net income (loss)
attributable to common
stockholders $7,213 $(11,676) $(52,224) $(30,526)
Plus: Depreciation
and amortization 5,259 5,171 10,514 8,835
Plus: Provision for
income taxes 1,777 9,761 8,848 18,659
Plus: Interest expense 9,033 15,160 19,812 32,419
Less: Interest income (47) (130) (65) (331)
--- ---- --- ----
EBITDA $23,235 $18,286 $(13,115) $29,056
Plus: Equity in
(income) loss of
affiliated company (747) (29) (1,897) 2,799
Plus: Noncontrolling
interest in income
of subsidiaries 1,067 1,058 1,938 1,881
Plus: Impairment
of long-lived assets - - 48,953 -
Plus: Stock-based
compensation 596 629 1,079 957
Plus: Other expense 114 33 64 44
Plus: Loss (income) loss
from discontinued
operations, net of tax 89 (1,334) (69) 6,447
Less: Gain on
retirement of debt - (1,015) (1,221) (1,015)
--- ------ ------ ------
Adjusted EBITDA $24,354 $17,628 $35,732 $40,169
======= ======= ======= =======
*Per share amounts do not add due to rounding.
June 30, 2009 December 31, 2008
------------- -----------------
(unaudited)
------------
SELECTED BALANCE SHEET DATA: (in thousands)
--------------
Cash and cash equivalents $22,153 $22,289
Intangible assets, net 891,884 944,969
Total assets 1,066,598 1,125,477
Total debt (including current portion) 673,539 675,362
Total liabilities 809,759 810,002
Total stockholders' equity 252,920 313,494
Noncontrolling interest in
subsidiaries 3,919 1,981
Applicable
Amount Interest Rate
Outstanding (a)
------------ --------------
(in thousands)
--------------
SELECTED LEVERAGE AND SWAP DATA:
Senior bank term debt
(swap matures 6/16/2010) (a) $25,000 6.27%
Senior bank term debt
(swap matures 6/16/2012) (a) 25,000 6.47%
Senior bank term debt
(at variable rates) (b) 4,029 2.63%
Senior bank revolving debt
(at variable rates) (c) 318,000 2.33%
8-7/8% senior subordinated notes
(fixed rate) 101,510 8.88%
6-3/8% senior subordinated notes
(fixed rate) 200,000 6.38%
(a) A total of $50.0 million is subject to fixed rate swap agreements
that became effective in June 2005 . Under our fixed rate swap
agreements, we pay a fixed rate plus a spread based on our leverage
ratio, as defined in our Credit Agreement. That spread is currently
set at 2.00% and is incorporated into the applicable interest rates
set forth above.
(b) Subject to rolling three month LIBOR plus a spread currently at
2.00% and incorporated into the applicable interest rate set forth
above. This tranche is not covered by swap agreements described in
footnote (a).
(c) Subject to rolling one month LIBOR plus a spread currently at
2.00% and incorporated into the applicable interest rate set forth
above. This tranche is not covered by swap agreements described in
footnote (a).
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 decreased to approximately
Operating expenses, excluding depreciation and amortization and
stock-based compensation, decreased to approximately
Interest expense decreased to approximately
As there were no early bond redemptions for the quarter ended
Equity in income of affiliated company increased to
Provision for income taxes decreased to approximately
Loss from discontinued operations, net of tax, was
Other pertinent financial information includes capital expenditures of
approximately
In
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited and
adjusted statements of operations for the three months and six months ended
Three Months Ended June 30, 2009
(in thousands, unaudited)
Corporate/
Elimi-
Reach Internet/ nations/
Consolidated Radio One Media Publishing Other
------------ --------- ----- ---------- -----
STATEMENT OF
OPERATIONS:
NET REVENUE $70,083 $57,467 $11,011 $3,225 $(1,620)
OPERATING EXPENSES:
Programming and
technical 19,225 13,065 4,516 2,602 (958)
Selling, general
and administrative 21,305 17,493 1,351 3,560 (1,099)
Corporate selling,
general and
administrative 5,199 - 1,677 - 3,522
Stock-based
compensation 596 187 - - 409
Depreciation and
amortization 5,259 2,348 981 1,624 306
----- ----- --- ----- ---
Total operating
expenses 51,584 33,093 8,525 7,786 2,180
------ ------ ----- ----- -----
Operating
income (loss) 18,499 24,374 2,486 (4,561) (3,800)
INTEREST INCOME (47) - (12) - (35)
INTEREST EXPENSE 9,033 - 1 1 9,031
EQUITY IN INCOME OF
AFFILIATED COMPANY (747) - - - (747)
OTHER EXPENSE, net 114 110 - 4 -
--- --- --- --- ---
Income (loss)
before provision
for income taxes,
noncontrolling
interest in income
of subsidiaries and
discontinued
operations 10,146 24,264 2,497 (4,566) (12,049)
PROVISION FOR
INCOME TAXES 1,777 899 878 - -
----- --- --- --- ---
Net income (loss) from
continuing
operations 8,369 23,365 1,619 (4,566) (12,049)
(LOSS) FROM DISCONTINUED
OPERATIONS, net of tax (89) (89) - - -
--- --- --- --- ---
CONSOLIDATED NET
INCOME (LOSS) 8,280 23,276 1,619 (4,566) (12,049)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES 1,067 - - - 1,067
----- --- --- --- -----
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON STOCKHOLDERS $7,213 $23,276 $1,619 $(4,566) $(13,116)
====== ======= ====== ======= ========
Three Months Ended June 30, 2008
(in thousands, unaudited)
Corporate/
Elimi-
Reach Internet/ nations/
Consolidated Radio One Media Publishing Other
------------ --------- ----- ---------- -----
STATEMENT OF
OPERATIONS:
NET REVENUE $83,432 $68,883 $11,399 $4,187 $(1,037)
OPERATING EXPENSES:
Programming
and technical 20,764 14,163 4,749 2,796 (944)
Selling, general
and administrative 27,489 22,354 1,285 4,604 (754)
Corporate selling,
general and
administrative 17,551 - 1,897 - 15,654
Stock-based
compensation 629 322 - 51 256
Depreciation
and amortization 5,171 2,310 1,001 1,502 358
----- ----- ----- ----- ---
Total operating
expenses 71,604 39,149 8,932 8,953 14,570
------ ------ ----- ----- ------
Operating
income (loss) 11,828 29,734 2,467 (4,766) (15,607)
INTEREST INCOME (130) - (19) 2 (113)
INTEREST EXPENSE 15,160 51 - 10 15,099
GAIN ON RETIREMENT
OF DEBT (1,015) - - - (1,015)
EQUITY IN INCOME OF
AFFILIATED COMPANY (29) - - - (29)
OTHER EXPENSE, net 33 - - 33 -
-- --- --- -- ---
(Loss) income
before provision
for income taxes,
noncontrolling
interest in income
of subsidiaries
and discontinued
operations (2,191) 29,683 2,486 (4,811) (29,549)
PROVISION FOR
INCOME TAXES 9,761 8,841 920 - -
----- ----- --- - -
Net (loss) income
from continuing
operations (11,952) 20,842 1,566 (4,811) (29,549)
INCOME FROM
DISCONTINUED
OPERATIONS,
net of tax 1,334 1,334 - - -
----- ----- - - -
CONSOLIDATED
NET (LOSS) INCOME (10,618) 22,176 1,566 (4,811) (29,549)
NONCONTROLLING
INTEREST IN
INCOME OF
SUBSIDIARIES 1,058 - - - 1,058
----- --- --- --- -----
NET (LOSS) INCOME
ATTRIBUTABLE TO
COMMON
STOCKHOLDERS $(11,676) $22,176 $1,566 $(4,811) $(30,607)
======== ======= ====== ======= ========
Six Months Ended June 30, 2009
(in thousands, unaudited)
Corporate/
Elimi-
Reach Internet/ nations/
Consolidated Radio One Media Publishing Other
------------ --------- ----- ---------- -----
STATEMENT OF
OPERATIONS:
NET REVENUE $130,754 $104,809 $21,503 $7,049 $(2,607)
OPERATING EXPENSES:
Programming
and technical 39,811 26,576 9,378 5,781 (1,924)
Selling, general
and administrative 44,879 37,040 2,311 7,118 (1,590)
Corporate selling,
general and
administrative 10,332 - 3,522 - 6,810
Stock-based
compensation 1,079 313 - - 766
Depreciation
and amortization 10,514 4,737 1,962 3,217 598
Impairment of
long-lived assets 48,953 48,953 - - -
------ ------ --- --- ---
Total operating
expenses 155,568 117,619 17,173 16,116 4,660
------- ------- ------ ------ -----
Operating
(loss) income (24,814) (12,810) 4,330 (9,067) (7,267)
INTEREST INCOME (65) - (22) - (43)
INTEREST EXPENSE 19,812 - 1 3 19,808
GAIN ON RETIREMENT
OF DEBT (1,221) - - - (1,221)
EQUITY IN INCOME
OF AFFILIATED
COMPANY (1,897) - - - (1,897)
OTHER EXPENSE
(INCOME), net 64 109 - (71) 26
-- --- --- --- --
(Loss) income
before provision
for income taxes,
noncontrolling
interest in income
of subsidiaries
and discontinued
operations (41,507) (12,919) 4,351 (8,999) (23,940)
PROVISION FOR
INCOME TAXES 8,848 7,314 1,534 - -
----- ----- ----- --- ---
Net (loss) income
from continuing
operations (50,355) (20,233) 2,817 (8,999) (23,940)
INCOME FROM DISCONTINUED
OPERATIONS,
net of tax 69 69 - - -
-- -- --- --- ---
CONSOLIDATED NET
(LOSS) INCOME (50,286) (20,164) 2,817 (8,999) (23,940)
NONCONTROLLING
INTEREST IN
INCOME OF
SUBSIDIARIES 1,938 - - - 1,938
----- --- --- --- -----
NET (LOSS) INCOME
ATTRIBUTABLE TO
COMMON
STOCKHOLDERS $(52,224) $(20,164) $2,817 $(8,999) $(25,878)
======== ======== ====== ======= ========
Six Months Ended June 30, 2008
(in thousands, unaudited)
Corporate/
Elimi-
Reach Internet/ nations/
Consolidated Radio One Media Publishing Other
------------ --------- ----- ---------- -----
STATEMENT OF
OPERATIONS:
NET REVENUE $155,930 $131,059 $21,865 $5,038 $(2,032)
OPERATING EXPENSES:
Programming
and technical 39,796 27,862 9,781 4,041 (1,888)
Selling, general
and administrative 52,007 44,730 2,139 6,600 (1,462)
Corporate selling,
general and
administrative 23,958 - 3,830 - 20,128
Stock-based
compensation 957 489 - 89 379
Depreciation and
amortization 8,835 4,545 1,998 1,527 765
----- ----- ----- ----- ---
Total operating
expenses 125,553 77,626 17,748 12,257 17,922
------- ------ ------ ------ ------
Operating
income (loss) 30,377 53,433 4,117 (7,219) (19,954)
INTEREST INCOME (331) - (61) 2 (272)
INTEREST EXPENSE 32,419 711 - 10 31,698
GAIN ON RETIREMENT
OF DEBT (1,015) - - - (1,015)
EQUITY IN LOSS
OF AFFILIATED
COMPANY 2,799 - - - 2,799
OTHER EXPENSE
(INCOME), net 44 - - 47 (3)
-- --- --- -- --
(Loss) income before
provision for
income taxes,
noncontrolling
interest in income
of subsidiaries
and discontinued
operations (3,539) 52,722 4,178 (7,278) (53,161)
PROVISION FOR
INCOME TAXES 18,659 17,135 1,524 - -
------ ------ ----- --- ---
Net (loss) income
from continuing
operations (22,198) 35,587 2,654 (7,278) (53,161)
LOSS FROM DISCONTINUED
OPERATIONS,
net of tax (6,447) (6,447) - - -
------ ------ --- --- ---
CONSOLIDATED NET
(LOSS) INCOME (28,645) 29,140 2,654 (7,278) (53,161)
NONCONTROLLING
INTEREST IN
INCOME OF
SUBSIDIARIES 1,881 - - - 1,881
----- --- --- --- -----
NET (LOSS) INCOME
ATTRIBUTABLE TO
COMMON
STOCKHOLDERS $(30,526) $29,140 $2,654 $(7,278) $(55,042)
======== ======= ====== ======= ========
The Company announced during its 2008 fourth quarter conference call that it would move to an annual conference call schedule as opposed to a quarterly conference call schedule, effective for the fiscal year 2009. Thus, no conference call is scheduled for discussion of the second quarter results.
Notes:
(1) "Station operating income" consists of net loss or income before depreciation and amortization, corporate expenses, stock-based compensation, equity in income or loss of affiliated company, provision for income taxes, noncontrolling interest in income of subsidiaries, interest expense, impairment of long-lived assets, other income or expense, gain on retirement of debt, and income or loss from discontinued operations, net of tax. Station operating income is not a measure of financial performance under generally accepted accounting principles. Nevertheless we believe station operating income is often a useful measure of a broadcasting company's operating performance and is a significant basis used by our management to measure the operating performance of our stations within the various markets because station operating income provides helpful information about our results of operations apart from expenses associated with our physical plant, income taxes, investments, debt financings, gain on retirement of debt, corporate overhead, stock-based compensation, impairment of long-lived assets and income or losses from asset sales. Station operating income is frequently used as one of the bases for comparing businesses in our industry, although our measure of station operating income may not be comparable to similarly titled measures of other companies. Station operating income does not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as an alternative to those measurements as an indicator of our performance. A reconciliation of operating income to station operating income has been provided in this release.
(2) For the three months ended
(3) For the six months ended
(4) "Adjusted EBITDA" consists of net loss or income plus (1) depreciation, amortization, provision for income taxes, interest expense, equity in income or loss of affiliated company, noncontrolling interest in income of subsidiaries, impairment of long-lived assets, stock-based compensation, other income or expense and loss or (income) from discontinued operations, net of tax, less (2) interest income and gain on retirement of debt. Net income before interest income, interest expense, provision for income taxes, depreciation and amortization is commonly referred to in our business as "EBITDA." Adjusted EBITDA and EBITDA are not measures of financial performance under generally accepted accounting principles. We believe Adjusted EBITDA is often a useful measure of a company's operating performance and is a significant basis used by our management to measure the operating performance of our business because Adjusted EBITDA excludes charges for depreciation, amortization and interest expense that have resulted from our acquisitions and debt financing, our taxes, impairment charges, as well as our equity in loss of our affiliated company, gain on retirement 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 physical plant, capital structure or the results of our affiliated company. Adjusted EBITDA is frequently used as one of the bases for comparing businesses in our industry, although our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA and EBITDA do not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as alternatives to those measurements as an indicator of our performance. A reconciliation of net income to EBITDA and Adjusted EBITDA has been provided in this release.
SOURCE:
CONTACT:
Web Site: http://www.radio-one.com
(ROIA ROIAK)