R
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the fiscal year ended December 31, 2008
|
|
OR
|
|
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 (NO FEE REQUIRED)
|
For the transition period
from
to
|
Delaware
|
52-1166660
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
Class
|
Outstanding at February 27,
2009
|
Class A
Common Stock, $.001 par value
|
3,016,730
|
Class B
Common Stock, $.001 par value
|
2,861,843
|
Class C
Common Stock, $.001 par value
|
3,121,048
|
Class D
Common Stock, $.001 par value
|
62,348,486
|
Page
|
|||||
PART I
|
|||||
Item 1.
|
Business
|
1 | |||
Item 1A.
|
Risk
Factors
|
12 | |||
Item 1B.
|
Unresolved
Staff
Comments
|
17 | |||
Item 2.
|
Properties
|
17 | |||
Item 3.
|
Legal
Proceedings
|
17 | |||
Item 4.
|
Submission
of Matters to a Vote of Security
Holders
|
17 | |||
PART II
|
|||||
Item 5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
18 | |||
Item 6.
|
Selected
Financial
Data
|
20 | |||
Item 7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
21 | |||
Item 7A.
|
Quantitative
and Qualitative Disclosure About Market
Risk
|
36 | |||
Item 8.
|
Financial
Statements and Supplementary
Data
|
37 | |||
Item 9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
37 | |||
Item 9A.
|
Controls
and
Procedures
|
37 | |||
Item 9B.
|
Other
Information
|
37 | |||
PART III
|
|||||
Item 10.
|
Directors
and Executive Officers of the
Registrant
|
38 | |||
Item 11.
|
Executive Compensation
|
38 | |||
Item 12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
38 | |||
Item 13.
|
Certain
Relationships and Related
Transactions
|
38 | |||
Item 14.
|
Principal
Accounting Fees and
Services
|
38 | |||
PART IV
|
|||||
Item 15.
|
Exhibits
and Financial Statement
Schedules
|
38 | |||
SIGNATURES
|
40 |
•
|
the
effects the current global financial and economic crisis, credit and
equity market volatility and the deteriorating U.S.
economy may continue to have on our business and financial condition and
the business and financial condition of our
advertisers;
|
•
|
a
continued worsening of the economy could negatively impact our ability to
meet our cash needs and our ability to maintain compliance with our debt
covenants;
|
•
|
fluctuations
in the demand for advertising across our various media given the current
economic environment;
|
•
|
risks
associated with the implementation and execution of our business
diversification strategy;
|
•
|
increased
competition in our markets and in the radio broadcasting and media
industries;
|
•
|
changes
in media audience ratings and measurement
methodologies;
|
•
|
regulation
by the Federal Communications Commission relative to maintaining our
broadcasting licenses, enacting media ownership rules and enforcing of
indecency rules;
|
•
|
changes
in our key personnel and on-air
talent;
|
•
|
increases
in the costs of our programming, including on-air talent and content
acquisitions costs;
|
•
|
financial
losses that may be sustained due to impairment charges against our
broadcasting licenses, goodwill and other intangible assets, particularly
in light of the current economic
environment;
|
•
|
increased
competition from new technologies;
|
•
|
the
impact of our acquisitions, dispositions and similar
transactions;
|
•
|
our
high degree of leverage and potential inability to refinance our debt
given current market conditions;
|
•
|
our
current non-compliance with NASDAQ rules for continued listing of our
Class A and Class D common stock;
and
|
•
|
other
factors mentioned in our filings with the Securities and Exchange
Commission including the factors discussed in detail in Item 1A,
“Risk Factors,” contained in this
report.
|
Radio One
|
Market Data
|
|||||||||||||||||||||||||||
Entire
|
||||||||||||||||||||||||||||
Audience
|
||||||||||||||||||||||||||||
Four
Book
|
|
|||||||||||||||||||||||||||
Average
|
Ranking
by Size
|
|
||||||||||||||||||||||||||
|
(Ending
|
of African-
|
Estimted
Fall 2008 Metro
|
|||||||||||||||||||||||||
|
Fall
2008)
|
Estimated
2007
|
American
|
Population Persons 12+(c)
|
||||||||||||||||||||||||
Number of Stations
|
Audience
|
Annual
Radio
|
Population
|
African-
|
||||||||||||||||||||||||
Market
|
FM
|
AM
|
Share(a)
|
Revenue(b)
|
Persons 12+(c)
|
Total
|
American%
|
|||||||||||||||||||||
($
millions)
|
(millions)
|
|||||||||||||||||||||||||||
Atlanta
(1)
|
4 | - | 14.8 | 398.5 | 3 | 4.4 | 30.9 | % | ||||||||||||||||||||
Washington,
DC (2)
|
3 | 2 | 12.9 | 365.1 | 4 | 4.2 | 26.9 | % | ||||||||||||||||||||
Philadelphia
(2)
|
3 | - | 8.0 | 301.4 | 5 | 4.4 | 20.3 | % | ||||||||||||||||||||
Detroit
(1)
|
2 | 1 | 6.0 | 225.3 | 6 | 3.9 | 22.0 | % | ||||||||||||||||||||
Houston
(2)
|
3 | - | 14.8 | 383.8 | 7 | 4.8 | 17.0 | % | ||||||||||||||||||||
Dallas
(1)
|
2 | - | 6.4 | 416.3 | 9 | 5.1 | 14.3 | % | ||||||||||||||||||||
Baltimore
|
2 | 2 | 17.4 | 147.5 | 11 | 2.3 | 28.6 | % | ||||||||||||||||||||
St. Louis
|
2 | - | 7.1 | 139.7 | 15 | 2.3 | 18.2 | % | ||||||||||||||||||||
Charlotte
|
2 | - | 5.1 | 114.5 | 16 | 2.0 | 21.0 | % | ||||||||||||||||||||
Cleveland
|
2 | 2 | 13.5 | 108.4 | 17 | 1.8 | 19.0 | % | ||||||||||||||||||||
Richmond
|
4 | 1 | 21.5 | 60.9 | 19 | .9 | 29.6 | % | ||||||||||||||||||||
Raleigh-Durham
|
4 | - | 19.0 | 84.8 | 20 | 1.3 | 21.5 | % | ||||||||||||||||||||
Boston
(3)
|
- | 1 | - | 310.5 | 21 | 3.9 | 6.7 | % | ||||||||||||||||||||
Cincinnati
|
2 | 1 | 9.4 | 123.1 | 27 | 1.8 | 12.2 | % | ||||||||||||||||||||
Columbus
|
3 | - | 13.4 | 102.9 | 29 | 1.4 | 14.6 | % | ||||||||||||||||||||
Indianapolis
(4)
|
3 | 1 | 18.6 | 93.6 | 31 | 1.4 | 14.8 | % | ||||||||||||||||||||
Total
|
41 | 11 |
(1)
(2)
(3)
(4)
|
Due
to a methodology measurement change, the four book average is measured
using the diary method in the first three quarters of the year and the
portable people meter (“PPM”) methodology for the fourth
quarter.
Due
to a methodology measurement change, the four book average is measured
using a 12 book PPM average.
We
do not subscribe to Arbitron for our Boston market.
WDNI-LP,
the low power television station that we acquired in Indianapolis in June
2000, is not included in this table.
|
(a)
|
Audience
share data are for the 12+ demographic and derived from the Arbitron
Survey four book averages ending with the Fall 2008 Arbitron
Survey.
|
(b)
|
2007
estimated annual radio revenues are from BIA Financials Investing in Radio
Market Report, 2008 Yearbook. The BIA Financials Investing in Radio Market
Report, 2009 Yearbook which would include the 2008 estimated annual radio
revenues was not available at the date the this Form 10-K was
filed.
|
(c)
|
Population
estimates are from the Arbitron Radio Market Report, Fall
2008.
|
Rank
|
Market
|
African-American
Population
(Persons 12+)
|
African-Americans
as
a Percentage of the
Overall Population(Persons 12+)
|
||||||||
(In thousands)
|
|||||||||||
1 |
New
York, NY
|
2,665 | 17.3 | % | |||||||
2 |
Chicago,
IL
|
1,379 | 17.6 | ||||||||
3 |
Atlanta,
GA
|
1,355 | 30.9 | ||||||||
4 |
Washington,
DC
|
1,140 | 26.9 | ||||||||
5 |
Philadelphia,
PA
|
885 | 20.3 | ||||||||
6 |
Detroit,
MI
|
853 | 22.0 | ||||||||
7 |
Houston-Galveston,
TX
|
811 | 17.0 | ||||||||
8 |
Los
Angeles, CA
|
810 | 7.4 | ||||||||
9 |
Dallas-Ft. Worth,
TX
|
733 | 14.3 | ||||||||
10 |
Miami-Ft. Lauderdale-Hollywood,
FL
|
714 | 20.0 | ||||||||
11 |
Baltimore,
MD
|
649 | 28.6 | ||||||||
12 |
Memphis,
TN
|
469 | 43.9 | ||||||||
13 |
San Francisco,
CA
|
426 | 7.1 | ||||||||
14 |
Norfolk-Virginia
Beach-Newport News, VA
|
425 | 31.8 | ||||||||
15 |
St. Louis,
MO
|
418 | 18.2 | ||||||||
16 |
Charlotte-Gastonia-Rock
Hill, NC
|
411 | 21.0 | ||||||||
17 |
Cleveland,
OH
|
336 | 19.0 | ||||||||
18 |
New
Orleans, LA
|
307 | 32.8 | ||||||||
19 |
Richmond,
VA
|
279 | 29.6 | ||||||||
20 |
Raleigh-Durham,
NC
|
277 | 21.5 | ||||||||
21 |
Boston,
MA
|
261 | 6.7 | ||||||||
22 |
Tampa-St.
Petersburg-Clearwater, FL
|
255 | 10.7 | ||||||||
23 |
Birmingham,
AL
|
251 | 28.3 | ||||||||
24 |
Jacksonville,
FL
|
245 | 21.5 | ||||||||
25 |
Orlando,
FL
|
241 | 15.9 | ||||||||
26 |
Greensboro-Winston-Salem-High
Point, NC
|
240 | 20.3 | ||||||||
27 |
Cincinnati,
OH
|
216 | 12.2 | ||||||||
28 |
Milwaukee-Racine,
WI
|
214 | 14.8 | ||||||||
29 |
Columbus,
OH
|
212 | 14.6 | ||||||||
30 |
Nassau-Suffolk
(Long Island), NY
|
210 | 9.0 | ||||||||
31 |
Indianapolis,
IN
|
205 | 14.8 | ||||||||
32 |
Kansas
City, KS
|
199 | 12.5 | ||||||||
33 |
Nashville,
TN
|
196 | 15.9 | ||||||||
34 |
Baton
Rouge, LA
|
195 | 34.1 | ||||||||
35 |
Jackson,
MS
|
182 | 45.8 | ||||||||
36 |
Middlesex-Somerset-Union,
NJ
|
182 | 13.2 | ||||||||
37 |
Minneapolis-St.
Paul, MN
|
182 | 6.7 | ||||||||
38 |
Seattle-Tacoma,
WA
|
182 | 5.4 | ||||||||
39 |
Columbia,
SC
|
171 | 32.9 | ||||||||
40 |
Riverside-San Bernardino,
CA
|
171 | 9.2 | ||||||||
41 |
West
Palm Beach-Boca Raton, FL
|
168 | 15.0 | ||||||||
42 |
Pittsburgh,
PA
|
165 | 8.4 | ||||||||
43 |
Las
Vegas, NV
|
161 | 10.1 | ||||||||
44 |
Charleston,
SC
|
154 | 28.3 | ||||||||
45 |
Augusta,
GA
|
147 | 34.2 | ||||||||
46 |
Greenville-Spartanburg,
SC
|
145 | 16.8 | ||||||||
47 |
Phoenix,
AZ
|
144 | 4.4 | ||||||||
48 |
Sacramento,
CA
|
139 | 7.6 | ||||||||
49 |
Louisville,
KY
|
133 | 14.0 | ||||||||
50 |
Greenville-New
Bern-Jacksonville, NC
|
129 | 24.4 |
|
•
|
market
research, targeted programming and
marketing;
|
|
•
|
ownership
and syndication of programming
content;
|
|
•
|
radio
station clustering, programming segmentation and sales
bundling;
|
|
•
|
strategic
and coordinated sales, marketing and special event
efforts;
|
|
•
|
strong
management and performance-based
incentives; and
|
|
•
|
significant
community involvement.
|
Market Rank
|
Four Book Average
|
||||||||||||||||||||||||||||||
2008
|
2008
|
Audience
Share
|
Audience
Rank
|
Audience
Share
|
Audience
Share
|
||||||||||||||||||||||||||
Metro
|
Radio
|
Year
|
Target
Age
|
in 12+
|
in
12+-
|
in
Target
|
in
Target
|
||||||||||||||||||||||||
Market
|
Population
|
Revenue
|
Acquired
|
Format
|
Demographic
|
DemoGraphic
|
DemoGraphic
|
DemoGraphic
|
DemoGraphic
|
||||||||||||||||||||||
Atlanta(1)(2)
|
7 | 6 | |||||||||||||||||||||||||||||
WPZE-FM
|
1999
|
Contemporary
Inspirational
|
25-54 | 4.2 | 7 | 3.9 | 7 | ||||||||||||||||||||||||
WJZZ-FM
|
1999
|
NAC/Jazz
|
25-54 | 2.8 | 12 | 2.6 | 16 | ||||||||||||||||||||||||
WHTA-FM
|
2002
|
Urban
Contemporary
|
18-34 | 4.1 | 6 | 7.4 | 2 | ||||||||||||||||||||||||
WAMJ-FM
|
2004
|
Urban
AC
|
25-54 | 3.7 | 8 | 4.6 | 6 | ||||||||||||||||||||||||
Washington,
DC(1)(2)
|
9 | 7 | |||||||||||||||||||||||||||||
WKYS-FM
|
1995
|
Urban
Contemporary
|
18-34 | 4.4 | 8 | 9.2 | 2 | ||||||||||||||||||||||||
WMMJ-FM
|
1987
|
Urban
AC
|
25-54 | 5.2 | 3 | 5.4 | 2 | ||||||||||||||||||||||||
WPRS-FM
|
2008
|
Contemporary
Inspirational
|
25-54 | 2.8 | 15 | 2.9 | 14 | (t) | |||||||||||||||||||||||
WYCB-AM
|
1998
|
Gospel
|
25-54 | 0.2 | 38 | (t) | 0.2 | 38 | (t) | ||||||||||||||||||||||
WOL-AM
|
1980
|
News/Talk
|
35-64 | 0.3 | 32 | (t) | 0.3 | 32 | (t) | ||||||||||||||||||||||
Philadelphia(3)
|
3 | 10 | |||||||||||||||||||||||||||||
WPPZ-FM
|
1997
|
Contemporary
Inspirational
|
25-54 | 3.0 | 17 | 3.6 | 12 | (t) | |||||||||||||||||||||||
WPHI-FM
|
2000
|
Urban
Contemporary
|
18-34 | 2.1 | 21 | 4.6 | 8 | ||||||||||||||||||||||||
WRNB-FM
|
2004
|
Urban
AC
|
25-54 | 2.9 | 18 | 3.2 | 15 | ||||||||||||||||||||||||
Detroit(1)(2)
|
11 | 13 | |||||||||||||||||||||||||||||
WHTD-FM
|
1998
|
Urban
Contemporary
|
18-34 | 2.2 | 18 | 4.9 | 4 | (t) | |||||||||||||||||||||||
WDMK-FM
|
1998
|
Urban
AC
|
25-54 | 2.8 | 15 | 3.1 | 14 | ||||||||||||||||||||||||
WCHB-AM
|
1998
|
News/Talk
|
35-64 | 1.1 | 23 | (t) | 0.9 | 23 | (t) | ||||||||||||||||||||||
Houston(3)
|
6 | 8 | |||||||||||||||||||||||||||||
KMJQ-FM
|
2000
|
Urban
AC
|
25-54 | 6.6 | 1 | 7.1 | 1 | ||||||||||||||||||||||||
KBXX-FM
|
2000
|
Urban
Contemporary
|
18-34 | 5.8 | 3 | 9.5 | 1 | ||||||||||||||||||||||||
KROI-FM
|
2004
|
Contemporary
Inspirational
|
25-54 | 2.4 | 19 | 2.7 | 17 | (t) | |||||||||||||||||||||||
Dallas(1)(2)
|
5 | 4 | |||||||||||||||||||||||||||||
KBFB-FM
|
2000
|
Urban
Contemporary
|
18-34 | 3.9 | 4 | (t) | 6.2 | 4 | |||||||||||||||||||||||
KSOC-FM
|
2001
|
Urban
AC
|
25-54 | 2.5 | 13 | (t) | 2.9 | 12 | |||||||||||||||||||||||
Baltimore
|
22 | 20 | |||||||||||||||||||||||||||||
WERQ-FM
|
1993
|
Urban
Contemporary
|
18-34 | 9.5 | 1 | 22.1 | 1 | ||||||||||||||||||||||||
WWIN-FM
|
1992
|
Urban
AC
|
25-54 | 7.2 | 3 | 8.0 | 2 | ||||||||||||||||||||||||
WOLB-AM
|
1992
|
News/Talk
|
35-64 | 0.3 | 40 | (t) | 0.2 | 47 | (t) | ||||||||||||||||||||||
WWIN-AM
|
1993
|
Gospel
|
35-64 | 0.4 | 37 | (t) | 0.4 | 36 | (t) | ||||||||||||||||||||||
St. Louis
|
20 | 21 | |||||||||||||||||||||||||||||
WFUN-FM
|
1999
|
Urban
AC
|
25-54 | 3.9 | 9 | (t) | 4.2 | 8 | (t) | ||||||||||||||||||||||
WHHL-FM
|
2006
|
Urban
Contemporary
|
18-34 | 3.2 | 16 | (t) | 7.0 | 4 | |||||||||||||||||||||||
Cleveland
|
29 | 27 | |||||||||||||||||||||||||||||
WENZ-FM
|
1999
|
Urban
Contemporary
|
18-34 | 5.8 | 6 | 14.4 | 1 | ||||||||||||||||||||||||
WERE-AM
|
1999
|
News/Talk
|
35-64 | 0.4 | 27 | (t) | 0.2 | 28 | (t) | ||||||||||||||||||||||
WZAK-FM
|
2000
|
Urban
AC
|
25-54 | 6.4 | 5 | 7.7 | 1 | ||||||||||||||||||||||||
WJMO-AM
|
2000
|
Contemporary
Inspirational
|
25-54 | 0.9 | 21 | (t) | 0.7 | 20 | (t) | ||||||||||||||||||||||
Charlotte
|
25 | 30 | |||||||||||||||||||||||||||||
WQNC-FM
|
2000
|
Urban
AC
|
25-54 | 2.1 | 17 | 2.4 | 17 | ||||||||||||||||||||||||
WPZS-FM
|
2004
|
Contemporary
Inspirational
|
25-54 | 3.0 | 13 | (t) | 2.9 | 16 | |||||||||||||||||||||||
Richmond
|
54 | 45 | |||||||||||||||||||||||||||||
WCDX-FM
|
2001
|
Urban
Contemporary
|
18-34 | 6.2 | 5 | 13.0 | 2 | ||||||||||||||||||||||||
WPZZ-FM
|
1999
|
Contemporary
Inspirational
|
25-54 | 5.8 | 8 | 5.2 | 6 | (t) | |||||||||||||||||||||||
WKJS-FM
|
2001
|
Urban
AC
|
25-54 | 9.3 | 1 | 9.9 | 1 | ||||||||||||||||||||||||
WKJM-FM
|
2001
|
Urban
AC
|
25-54 | * | * | * | * | ||||||||||||||||||||||||
WTPS-AM
|
2001
|
News/Talk
|
35-64 | 0.2 | 31 | (t) | 0.2 | 30 | (t) | ||||||||||||||||||||||
Raleigh-Durham
|
43 | 37 | |||||||||||||||||||||||||||||
WQOK-FM
|
2000
|
Urban
Contemporary
|
18-34 | 6.8 | 2 | 12.4 | 1 | ||||||||||||||||||||||||
WFXK-FM
|
2000
|
Urban
AC
|
25-54 | ** | ** | ** | ** | ||||||||||||||||||||||||
WFXC-FM
|
2000
|
Urban
AC
|
25-54 | 6.6 | 4 | 7.0 | 2 | ||||||||||||||||||||||||
WNNL-FM
|
2000
|
Contemporary
Inspirational
|
25-54 | 5.6 | 7 | (t) | 5.4 | 7 | |||||||||||||||||||||||
Columbus
|
36 | 31 | |||||||||||||||||||||||||||||
WCKX-FM
|
2001
|
Urban
Contemporary
|
18-34 | 7.1 | 3 | 12.9 | 1 | ||||||||||||||||||||||||
WXMG-FM
|
2001
|
R&B/Oldies
|
25-54 | 4.7 | 6 | (t) | 5.2 | 5 | |||||||||||||||||||||||
WJYD-FM
|
2001
|
Contemporary
Inspirational
|
25-54 | 1.6 | 20 | 1.7 | 19 | (t) | |||||||||||||||||||||||
Cincinnati
|
28 | 24 | |||||||||||||||||||||||||||||
WIZF-FM
|
2001
|
Urban
Contemporary
|
18-34 | 4.6 | 7 | (t) | 9.9 | 1 | |||||||||||||||||||||||
WMOJ-FM
|
2006
|
Urban
AC
|
25-54 | 3.9 | 9 | 4.2 | 8 | ||||||||||||||||||||||||
WDBZ-AM
|
2007
|
News/Talk
|
35-64 | 0.9 | 21 | (t) | 0.8 | 24 | (t) | ||||||||||||||||||||||
Indianapolis(4)
|
40 | 32 | |||||||||||||||||||||||||||||
WHHH-FM
|
2000
|
Rhythmic
CHR
|
18-34 | 5.8 | 5 | 11.0 | 1 | ||||||||||||||||||||||||
WTLC-FM
|
2000
|
Urban
AC
|
25-54 | 6.8 | 3 | 7.5 | 3 | ||||||||||||||||||||||||
WNOU-FM
|
2000
|
Pop/CHR
|
18-34 | 4.0 | 9 | 7.5 | 4 | ||||||||||||||||||||||||
WTLC-AM
|
2001
|
Contemporary
Inspirational
|
25-54 | 2.0 | 15 | (t) | 2.1 | 16 | |||||||||||||||||||||||
AC —
refers to Adult Contemporary
|
|||||||||||||||||||||||||||||||
NAC —
refers to New Adult Contemporary
|
|||||||||||||||||||||||||||||||
CHR —
refers to Contemporary Hit Radio
|
|||||||||||||||||||||||||||||||
R&B —
refers to Rhythm and Blues
|
|||||||||||||||||||||||||||||||
Pop
— refers to Popular Music
|
*
|
Simulcast
with WKJS-FM
|
**
|
Simulcast
with WFXC-FM
|
(1)
|
Due
to a methodology measurement change, the four book average is measured
using the diary method in the first three quarters of the year and the PPM
methodology for the fourth quarter.
|
(2)
|
Due
to a methodology measurement change, the rank is based upon three book
diary average ranking.
|
(3)
|
Due
to a methodology measurement change, the four book average is measured
using 12 book PPM average.
|
(4)
|
WDNI-LP,
the low power television station that we acquired in Indianapolis in June
2000, is not included in this table.
|
|
•
|
a
radio station’s audience share within the demographic groups targeted by
the advertisers;
|
|
•
|
the
number of radio stations in the market competing for the same demographic
groups; and
|
|
•
|
the
supply and demand for radio advertising
time.
|
|
•
|
satellite
delivered digital audio radio service, which has resulted in the
introduction of several new satellite radio services with sound quality
equivalent to that of compact
discs;
|
|
•
|
audio
programming by cable television systems and direct broadcast satellite
systems; and
|
|
•
|
digital
audio and video content available for listening and/or viewing on the
internet and/or available for downloading to portable
devices.
|
|
•
|
assigns
frequency bands for radio
broadcasting;
|
|
•
|
determines
the particular frequencies, locations, operating power, interference
standards and other technical parameters of radio broadcast
stations;
|
|
•
|
issues,
renews, revokes and modifies radio broadcast station
licenses;
|
|
•
|
imposes
annual regulatory fees and application processing fees to recover its
administrative costs;
|
|
•
|
establishes
technical requirements for certain transmitting equipment to restrict
harmful emissions;
|
|
•
|
adopts
and implements regulations and policies that affect the ownership,
operation, program content and employment and business practices of radio
broadcast stations; and
|
|
•
|
has
the power to impose penalties, including monetary forfeitures, for
violations of its rules and the Communications
Act.
|
|
•
|
changes
to the license authorization and renewal
process;
|
|
•
|
proposals
to improve record keeping, including enhanced disclosure of stations’
efforts to serve the public
interest;
|
|
•
|
proposals
to impose spectrum use or other fees on FCC
licensees;
|
|
•
|
changes
to rules relating to political broadcasting including proposals to grant
free air time to candidates, and other changes regarding political and
non-political program content, funding, political advertising rates, and
sponsorship disclosures;
|
|
•
|
proposals
to restrict or prohibit the advertising of beer, wine and other alcoholic
beverages;
|
|
•
|
proposals
regarding the regulation of the broadcast of indecent or violent
content;
|
|
•
|
proposals
to increase the actions stations must take to demonstrate service to their
local communities;
|
|
•
|
technical
and frequency allocation matters, including increased protection of low
power FM stations from interference by full-service
stations;
|
|
•
|
changes
in broadcast multiple ownership, foreign ownership, cross-ownership and
ownership attribution policies;
|
|
•
|
changes
to allow satellite radio operators to insert local content into their
programming service;
|
|
•
|
additional
public interest requirements for terrestrial digital audio
broadcasters;
|
|
•
|
changes
to allow telephone companies to deliver audio and video programming to
homes in their service
areas; and
|
|
•
|
proposals
to alter provisions of the tax laws affecting broadcast operations and
acquisitions.
|
|
•
|
the
radio station has served the public interest, convenience and
necessity;
|
|
•
|
there
have been no serious violations by the licensee of the Communications Act
or FCC rules and
regulations; and
|
|
•
|
there
have been no other violations by the licensee of the Communications Act or
FCC rules and regulations which, taken together, indicate a pattern of
abuse.
|
Market
|
Station
Call Letters
|
Year of
Acquisition
|
FCC Class
|
ERP
(FM)
Power
(AM)
in Kilowatts
|
Antenna
Height
(AM)
HAAT
(FM)
in Meters
|
Operating
Frequency
|
Expiration
Date
of FCC License
|
||||||||||||
Atlanta
|
WUMJ-FM(1)
|
1999
|
C3 | 7.9 | 175.0 |
97.5 MHz
|
4/1/2012
|
||||||||||||
WAMJ-FM(2)
|
1999
|
C3 | 21.5 | 110.0 |
107.5 MHz
|
4/1/2012
|
|||||||||||||
WHTA-FM
|
2002
|
C2 | 27.0 | 176.0 |
107.9 MHz
|
4/1/2012
|
|||||||||||||
WPZE-FM(3)
|
2004
|
A | 3.0 | 143.0 |
102.5 MHz
|
4/1/2012
|
|||||||||||||
Washington,
DC
|
WOL-AM
|
1980
|
C | 1.0 | 52.1 |
1450
kHz
|
10/1/2011
|
||||||||||||
WMMJ-FM
|
1987
|
A | 2.9 | 146.0 |
102.3 MHz
|
10/1/2011
|
|||||||||||||
WKYS-FM
|
1995
|
B | 24.5 | 215.0 |
93.9 MHz
|
10/1/2011
|
|||||||||||||
WPRS-FM
|
2008
|
B | 20.0 | 244.0 |
104.1 MHz
|
10/1/2011
|
|||||||||||||
WYCB-AM
|
1998
|
C | 1.0 | 50.9 |
1340
kHz
|
10/1/2011
|
|||||||||||||
Philadelphia
|
WPPZ-FM(4)
|
1997
|
A | 0.27 | 338.0 |
103.9 MHz
|
8/1/2014
|
||||||||||||
WPHI-FM
|
2000
|
B | 17.0 | 263.0 |
100.3 MHz
|
8/1/2014
|
|||||||||||||
WRNB-FM
|
2004
|
A | 0.78 | 276.0 |
107.9 MHz
|
6/1/2014
|
|||||||||||||
Detroit
|
WDMK-FM
|
1998
|
B | 20.0 | 221.0 |
105.9 MHz
|
10/1/2012
|
||||||||||||
WCHB-AM
|
1998
|
B | 50.0 | 49.3 |
1200
kHz
|
10/1/2012
|
|||||||||||||
WHTD-FM
|
1998
|
B | 50.0 | 152.0 |
102.7 MHz
|
10/1/2012
|
|||||||||||||
Houston
|
KMJQ-FM
|
2000
|
C | 100.0 | 524.0 |
102.1 MHz
|
8/1/2013
|
||||||||||||
KBXX-FM
|
2000
|
C | 100.0 | 585.0 |
97.9 MHz
|
8/1/2013
|
|||||||||||||
KROI-FM
|
2004
|
C1 | 22.0 | 526.0 |
92.1 MHz
|
8/1/2013
|
|||||||||||||
Dallas
|
KBFB-FM
|
2000
|
C | 100.0 | 491.0 |
97.9 MHz
|
8/1/2013
|
||||||||||||
KSOC-FM
|
2001
|
C | 100.0 | 591.0 |
94.5 MHz
|
8/1/2013
|
|||||||||||||
Baltimore
|
WWIN-AM
|
1992
|
C | 0.5 | 86.8 |
1400
kHz
|
10/1/2011
|
||||||||||||
WWIN-FM
|
1992
|
A | 3.0 | 91.0 |
95.9 MHz
|
10/1/2011
|
|||||||||||||
WOLB-AM
|
1993
|
D | 0.25 | 85.3 |
1010
kHz
|
10/1/2011
|
|||||||||||||
WERQ-FM
|
1993
|
B | 37.0 | 174.0 |
92.3 MHz
|
10/1/2011
|
|||||||||||||
St. Louis
|
WFUN-FM
|
1999
|
C3 | 24.5 | 102.0 |
95.5 MHz
|
12/1/2012
|
||||||||||||
WHHL-FM
|
2006
|
C2 | 39.0 | 168.0 |
104.1 MHz
|
12/1/2012
|
|||||||||||||
Cleveland
|
WJMO-AM
|
1999
|
B | 5.0 | 128.1 |
1300
kHz
|
10/1/2012
|
||||||||||||
WENZ-FM
|
1999
|
B | 16.0 | 272.0 |
107.9 MHz
|
10/1/2012
|
|||||||||||||
WZAK-FM
|
2000
|
B | 27.5 | 189.0 |
93.1 MHz
|
10/1/2012
|
|||||||||||||
WERE-AM
|
2000
|
C | 1.0 | 106.7 |
1490
kHz
|
10/1/2012
|
|||||||||||||
Charlotte
|
WQNC-FM
|
2000
|
A | 6.0 | 100.0 |
92.7 MHz
|
12/1/2011
|
||||||||||||
WPZS-FM
|
2004
|
A | 6.0 | 100.0 |
100.9 MHz
|
12/1/2011
|
|||||||||||||
Richmond
|
WPZZ-FM
|
1999
|
C1 | 100.0 | 299.0 |
104.7 MHz
|
10/1/2011
|
||||||||||||
WCDX-FM
|
2001
|
B1 | 4.5 | 235.0 |
92.1 MHz
|
10/1/2011
|
|||||||||||||
WKJM-FM
|
2001
|
A | 6.0 | 100.0 |
99.3 MHz
|
10/1/2011
|
|||||||||||||
WKJS-FM
|
2001
|
A | 2.3 | 162.0 |
105.7 MHz
|
10/1/2011
|
|||||||||||||
WTPS-AM
|
2001
|
C | 1.0 | 121.9 |
1240
kHz
|
10/1/2011
|
|||||||||||||
Raleigh-Durham
|
WQOK-FM
|
2000
|
C1 | 100.0 | 299.0 |
97.5 MHz
|
10/1/2011
|
||||||||||||
WFXK-FM
|
2000
|
C1 | 100.0 | 299.0 |
104.3 MHz
|
12/1/2011
|
|||||||||||||
WFXC-FM
|
2000
|
A | 2.6 | 153.0 |
107.1 MHz
|
12/1/2011
|
|||||||||||||
WNNL-FM
|
2000
|
C3 | 7.9 | 176.0 |
103.9 MHz
|
12/1/2011
|
|||||||||||||
Boston
|
WILD-AM
|
2001
|
D | 5.0 | 59.6 |
1090
kHz
|
4/1/2014
|
||||||||||||
Columbus
|
WCKX-FM
|
2001
|
A | 1.9 | 126.0 |
107.5 MHz
|
10/1/2012
|
||||||||||||
WXMG-FM
|
2001
|
A | 2.6 | 154.0 |
98.9 MHz
|
10/1/2012
|
|||||||||||||
WJYD-FM
|
2001
|
A | 6.0 | 100.0 |
106.3 MHz
|
10/1/2012
|
|||||||||||||
Cincinnati
|
WIZF-FM
|
2001
|
A | 2.5 | 155.0 |
100.9 MHz
|
8/1/2012
|
||||||||||||
WDBZ-AM
|
2007
|
C | 1.0 | 60.7 |
1230 kHz
|
10/1/2012
|
|||||||||||||
WMOJ-FM
|
2006
|
A | 3.6 | 130.0 |
100.3 MHz
|
10/1/2012
|
|||||||||||||
Indianapolis
(A)
|
WHHH-FM
|
2000
|
A | 3.3 | 87.0 |
96.3 MHz
|
8/1/2012
|
||||||||||||
WTLC-FM
|
2000
|
A | 6.0 | 99.0 |
106.7 MHz
|
8/1/2012
|
|||||||||||||
WNOU-FM
|
2000
|
A | 6.0 | 100.0 |
100.9 MHz
|
8/1/2012
|
|||||||||||||
WTLC-AM
|
2001
|
B | 5.0 | 140.0 |
1310
kHz
|
8/1/2012
|
(1)
|
WUMJ-FM
effective February 20, 2009 (formerly WPZE-FM).
|
(2)
|
WAMJ-FM
effective February 27, 2009 (formerly WJZZ-FM).
|
(3)
|
WPZE-FM
effective February 20, 2009 (formerly WAMJ-FM).
|
(4)
|
WPPZ-FM
operates with facilities equivalent to 3kW at 100
meters.
|
(A)
|
WDNI-LP,
the low power television station that we acquired in Indianapolis in June
2000, is not included in this
table.
|
|
•
|
radio
broadcast stations above certain numerical limits serving the same local
market;
|
|
•
|
radio
broadcast stations combined with television broadcast stations above
certain numerical limits serving the same local market (radio/television
cross ownership); and
|
|
•
|
a
radio broadcast station and an English-language daily newspaper serving
the same local market (newspaper/broadcast cross-ownership), although in
late 2007 the FCC adopted a revised rule that would allow a degree of
same-market newspaper/broadcast cross-ownership based on certain
presumptions, criteria and
limitations.
|
|
•
|
in
a radio market with 45 or more commercial radio stations, a party may own,
operate or control up to eight commercial radio stations, not more than
five of which are in the same service (AM or
FM);
|
|
•
|
in
a radio market with 30 to 44 commercial radio stations, a party may own,
operate or control up to seven commercial radio stations, not more than
four of which are in the same service (AM or
FM);
|
|
•
|
in
a radio market with 15 to 29 commercial radio stations, a party may own,
operate or control up to six commercial radio stations, not more than four
of which are in the same service (AM or
FM); and
|
|
•
|
in
a radio market with 14 or fewer commercial radio stations, a party may
own, operate or control up to five commercial radio stations, not more
than three of which are in the same service (AM or FM), except that a
party may not own, operate, or control more than 50% of the radio stations
in such market.
|
|
•
|
enforcement
of a more narrow market definition based upon Arbitron markets could have
an adverse effect on our ability to accumulate stations in a given area or
to sell a group of stations in a local market to a single
entity;
|
|
•
|
restricting
the assignment and transfer of control of radio combinations that exceed
the new ownership limits as a result of the revised local market
definitions could adversely affect our ability to buy or sell a group of
stations in a local market from or to a single entity;
and
|
|
•
|
in
general terms, future changes in the way the FCC defines radio markets or
in the numerical station caps could limit our ability to acquire new
stations in certain markets, our ability to operate stations pursuant to
certain agreements, and our ability to improve the coverage contours of
our existing stations.
|
|
•
|
reduction
in the number of suitable acquisition targets due to increased competition
for acquisitions;
|
|
•
|
we
may lose key employees of acquired companies or
stations;
|
|
•
|
difficulty
in integrating operations and systems and managing a diverse media
business;
|
|
•
|
inability
to find buyers for radio stations we target for sale at attractive prices
due to decreasing market prices for radio stations or the inability to
obtain credit in the current economic
environment;
|
|
•
|
failure
or delays in completing acquisitions or divestitures due to difficulties
in obtaining required regulatory approval, including possible difficulties
by the seller or buyer in obtaining antitrust approval for acquisitions in
markets where we already own multiple stations or establishing compliance
with broadcast ownership rules;
|
|
•
|
failure
of some acquisitions to prove profitable or generate sufficient cash
flow; and
|
|
•
|
inability
to finance acquisitions on acceptable terms, through incurring debt or
issuing stock.
|
|
•
|
satellite
delivered digital audio radio service, which has resulted in the
introduction of several new satellite radio services with sound quality
equivalent to that of compact
discs;
|
|
•
|
audio
programming by cable television systems, direct broadcast satellite
systems, internet content providers and other digital audio broadcast
formats; and
|
|
•
|
digital
audio and video content available for listening and/or viewing on the
internet and/or available for downloading to portable
devices.
|
·
|
significantly
increase our online traffic and
revenue;
|
·
|
attract
and retain a base of frequent visitors to our web
sites;
|
·
|
expand
the content, products and tools we offer on our web
sites;
|
·
|
respond
to competitive developments while maintaining a distinct identity across
each of our on-line brands;
|
·
|
attract
and retain talent for critical
positions;
|
·
|
maintain
and form relationships with strategic partners to attract more
consumers;
|
·
|
continue
to develop and upgrade our technologies;
and
|
·
|
bring
new product features to market in a timely
manner.
|
|
•
|
obtain
additional financing for working capital, capital expenditures,
acquisitions, debt payments or other corporate
purposes;
|
|
•
|
have
sufficient funds available for operations, future business opportunities
or other purposes, after paying debt
service;
|
|
•
|
compete
with competitors that have less
debt; and
|
|
•
|
react
to changing market conditions, changes in our industry and economic
downturns.
|
ITEM 5. MARKET
FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
EQUITY SECURITIES
|
High
|
Low
|
|||||||
2008
|
||||||||
First
Quarter
|
$ | 2.35 | $ | 1.05 | ||||
Second
Quarter
|
$ | 1.66 | $ | 0.82 | ||||
Third
Quarter
|
$ | 1.89 | $ | 1.01 | ||||
Fourth
Quarter
|
$ | 1.42 | $ | 0.35 | ||||
2007
|
||||||||
First
Quarter
|
$ | 7.59 | $ | 6.25 | ||||
Second
Quarter
|
$ | 7.69 | $ | 6.43 | ||||
Third
Quarter
|
$ | 7.48 | $ | 3.15 | ||||
Fourth
Quarter
|
$ | 4.03 | $ | 1.84 |
High
|
Low
|
|||||||
2008
|
||||||||
First
Quarter
|
$ | 2.36 | $ | 1.09 | ||||
Second
Quarter
|
$ | 1.62 | $ | 0.82 | ||||
Third
Quarter
|
$ | 1.31 | $ | 0.51 | ||||
Fourth
Quarter
|
$ | 0.85 | $ | 0.07 | ||||
2007
|
||||||||
First
Quarter
|
$ | 7.61 | $ | 6.20 | ||||
Second
Quarter
|
$ | 7.73 | $ | 6.42 | ||||
Third
Quarter
|
$ | 7.47 | $ | 3.06 | ||||
Fourth
Quarter
|
$ | 4.05 | $ | 1.85 |
ITEM 6. SELECTED
FINANCIAL DATA
|
For the Years Ended December
31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(As
Adjusted – See Note 1 below)
|
||||||||||||||||||||
(In
thousands, except share data)
|
||||||||||||||||||||
Statements
of Operations (1):
|
||||||||||||||||||||
Net
revenue
|
$ | 316,416 | $ | 319,552 | $ | 321,625 | $ | 308,098 | $ | 253,819 | ||||||||||
Programming
and technical expenses including stock-based compensation
|
82,121 | 74,053 | 68,818 | 57,810 | 39,792 | |||||||||||||||
Selling,
general and administrative expenses including stock-based
compensation
|
105,037 | 102,966 | 98,016 | 92,898 | 71,261 | |||||||||||||||
Corporate
selling, general and administrative expenses including stock-based
compensation
|
36,357 | 28,396 | 28,239 | 25,070 | 18,796 | |||||||||||||||
Depreciation
and amortization
|
19,124 | 14,768 | 13,890 | 14,044 | 11,884 | |||||||||||||||
Impairment
of long-lived assets
|
423,220 | 211,051 | — | — | — | |||||||||||||||
Operating
(loss) income
|
(349,443 | ) | (111,682 | ) | 112,662 | 118,276 | 112,086 | |||||||||||||
Interest
expense(2)
|
59,689 | 72,770 | 72,932 | 63,010 | 39,588 |
Gain on retirement of debt | 74,017 | — | — | — | — | |||||||||||||||
Equity
in loss of affiliated company
|
3,652 | 15,836 | 2,341 | 1,846 | 3,905 | |||||||||||||||
Other
income, net
|
130 | 895 | 1,110 | 1,331 | 2,658 | |||||||||||||||
(Loss)
income before (benefit from) provision for income taxes, minority interest
in income of subsidiaries and discontinued operations
|
(338,637 | ) | (199,393 | ) | 38,499 | 54,751 | 71,251 | |||||||||||||
(Benefit
from) provision for income taxes
|
(45,200 | ) | 54,083 | 18,260 | 18,816 | 28,504 | ||||||||||||||
Minority
interest in income of subsidiaries
|
3,997 | 3,910 | 3,004 | 1,868 | — | |||||||||||||||
(Loss)
income from continuing operations
|
(297,434 | ) | (257,386 | ) | 17,235 | 34,067 | 42,747 | |||||||||||||
(Loss)
income from discontinued operations, net of tax
|
(5,510 | ) | (134,114 | ) | (23,965 | ) | 14,568 | 16,738 | ||||||||||||
Net
(loss) income
|
(302,944 | ) | (391,500 | ) | (6,730 | ) | 48,635 | 59,485 | ||||||||||||
Preferred
stock dividend
|
— | — | — | 2,761 | 20,140 | |||||||||||||||
Net
(loss) income applicable to common stockholders(3)
|
$ | (302,944 | ) | $ | (391,500 | ) | $ | (6,730 | ) | $ | 45,874 | $ | 39,345 | |||||||
Net
(loss) income per common share — basic and diluted:
|
||||||||||||||||||||
(Loss)
income from continuing operations, net of tax
|
$ | (3.16 | ) | $ | (2.61 | ) | $ | 0.17 | $ | 0.30 | $ | 0.21 | ||||||||
(Loss)
income from discontinued operations, net of tax
|
(0.06 | ) | (1.36 | ) | (0.24 | ) | 0.14 | 0.16 | ||||||||||||
Net
(loss) income applicable to common stockholders per share
|
$ | (3.22 | ) | $ | (3.97 | ) | $ | (.07 | ) | $ | 0.44 | $ | 0.37 | |||||||
As
of December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(As
Adjusted - See Note 1 below)
|
||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Balance
Sheet Data (1):
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | 22,289 | $ | 24,247 | $ | 32,406 | $ | 19,081 | $ | 10,391 | ||||||||||
Short-term
investments
|
— | — | — | — | 10,000 | |||||||||||||||
Intangible
assets, net
|
944,969 | 1,310,321 | 1,522,158 | 1,485,576 | 1,401,786 | |||||||||||||||
Total
assets
|
1,125,477 | 1,648,354 | 2,195,210 | 2,201,380 | 2,111,141 | |||||||||||||||
Total
debt (including current portion)
|
675,362 | 815,504 | 937,527 | 952,520 | 620,028 | |||||||||||||||
Total
liabilities
|
810,002 | 1,015,747 | 1,176,963 | 1,178,834 | 782,405 | |||||||||||||||
Total
stockholders’ equity
|
313,494 | 628,718 | 1,018,267 | 1,019,690 | 1,328,736 |
(1)
|
Year-to-year
comparisons are significantly affected by Radio One’s acquisitions and
dispositions during the periods covered. Certain reclassifications
associated with accounting for discontinued operations have been made to
prior year and prior quarter balances to conform to the current year
presentation. The reclassifications related to acquisitions and
dispositions had no effect on any other previously reported net income or
loss or any other statement of operations, balance sheet or cash flow
amounts. Additionally, the 2007 financial data reflects the correction of
an error to increase the equity in loss of affiliated company by
approximately $4.4 million.
|
(2)
|
Interest
expense includes non-cash interest, such as the accretion of principal,
local marketing agreement (“LMA”) fees, the amortization of discounts on
debt and the amortization of deferred financing costs.
|
(3)
|
(Loss)
income before (loss) income from discontinued operations is the reported
amount, less dividends paid on Radio One’s preferred
securities.
|
For the Years Ended
December 31,
|
||||||||||||||||||||
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Statement
of Cash Flows:
|
||||||||||||||||||||
Cash
flows from (used in):
|
||||||||||||||||||||
Operating
activities
|
$ | 13,832 | $ | 44,014 | $ | 77,460 | $ | 101,145 | $ | 123,716 | ||||||||||
Investing
activities
|
66,031 | 78,468 | (46,227 | ) | (28,301 | ) | (155,495 | ) | ||||||||||||
Financing
activities
|
(81,821 | ) | (130,641 | ) | (17,908 | ) | (64,154 | ) | 4,160 | |||||||||||
Other
Data:
|
||||||||||||||||||||
Cash
interest expense(1)
|
$ | 68,611 | $ | 70,798 | $ | 70,876 | $ | 53,753 | $ | 37,842 | ||||||||||
Capital
expenditures
|
12,597 | 10,203 | 13,601 | 13,816 | 12,786 |
(1)
|
Cash
interest expense is calculated as interest expense less non-cash interest,
including the accretion of principal, LMA fees, the amortization of
discounts on debt and the amortization of deferred financing costs for the
indicated period.
|
ITEM 7. MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
Years Ended
December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(As
Adjusted – See Note 1 of our Consolidated Financial
Statements)
|
||||||||||||
(In
thousands, except margin data)
|
||||||||||||
Net
revenue
|
$ | 316,416 | $ | 319,552 | $ | 321,625 | ||||||
Station
operating income
|
129,958 | 144,456 | 157,481 | |||||||||
Station
operating income margin
|
41.1 | % | 45.2 | % | 49.0 | % | ||||||
Net
loss
|
(302,944 | ) | (391,500 | ) | (6,730 | ) |
Years Ended
December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(As
Adjusted – See Note 1 of our Consolidated Financial
Statements)
|
||||||||||||
(In
thousands)
|
||||||||||||
Net
loss as reported
|
$ | (302,944 | ) | $ | (391,500 | ) | $ | (6,730 | ) | |||
Add
back non-station operating income items included in net
loss:
|
||||||||||||
Interest
income
|
(491 | ) | (1,242 | ) | (1,393 | ) | ||||||
Interest
expense
|
59,689 | 72,770 | 72,932 | |||||||||
(Benefit
from) provision for income taxes
|
(45,200 | ) | 54,083 | 18,260 | ||||||||
Corporate
selling, general and administrative, excluding stock-based
compensation
|
35,280 | 27,328 | 26,296 | |||||||||
Stock-based
compensation
|
1,777 | 2,991 | 4,633 | |||||||||
Equity
in loss of affiliated company
|
3,652 | 15,836 | 2,341 | |||||||||
Gain
on retirement of debt
|
(74,017 | ) | - | - | ||||||||
Other
expense, net
|
361 | 347 | 283 | |||||||||
Depreciation
and amortization
|
19,124 | 14,768 | 13,890 | |||||||||
Minority
interest in income of subsidiaries
|
3,997 | 3,910 | 3,004 | |||||||||
Impairment
of long-lived assets
|
423,220 | 211,051 | - | |||||||||
Loss from
discontinued operations, net of tax
|
5,510 | 134,114 | 23,965 | |||||||||
Station
operating income
|
$ | 129,958 | $ | 144,456 | $ | 157,481 |
Years Ended
December 31,
|
Increase/(Decrease)
|
|||||||||||||||
2008
|
2007
|
|
||||||||||||||
(As
Adjusted –See
Note 1 Below)
|
||||||||||||||||
Statements
of Operations:
|
||||||||||||||||
Net
revenue
|
$ | 316,416 | $ | 319,552 | $ | (3,136 | ) | (1.0 | )% | |||||||
Operating
expenses:
|
||||||||||||||||
Programming
and technical, excluding stock-based compensation
|
81,934 | 73,574 | 8,360 | 11.4 | ||||||||||||
Selling,
general and administrative, excluding stock-based
compensation
|
104,524 | 101,522 | 3,002 | 3.0 | ||||||||||||
Corporate
selling, general and administrative, excluding stock-based
compensation
|
35,280 | 27,328 | 7,952 | 29.1 | ||||||||||||
Stock-based
compensation
|
1,777 | 2,991 | (1,214 | ) | (40.6 | ) | ||||||||||
Depreciation
and amortization
|
19,124 | 14,768 | 4,356 | 29.5 | ||||||||||||
Impairment
of long-lived assets
|
423,220 | 211,051 | 212,169 | 100.5 | ||||||||||||
Total
operating expenses
|
665,859 | 431,234 | 234,625 | 54.4 | ||||||||||||
Operating
loss
|
(349,443 | ) | (111,682 | ) | 237,761 | 212.9 | ||||||||||
Interest
income
|
491 | 1,242 | (751 | ) | (60.5 | ) | ||||||||||
Interest
expense
|
59,689 | 72,770 | (13,081 | ) | (18.0 | ) | ||||||||||
Gain
on retirement of debt
|
74,017 | - | 74,017 | - | ||||||||||||
Equity
in loss of affiliated company
|
3,652 | 15,836 | (12,184 | ) | (76.9 | ) | ||||||||||
Other
expense, net
|
361 | 347 | 14 | 4.0 | ||||||||||||
Loss
before (benefit from) provision for income taxes, minority interest in
income of subsidiaries and loss from discontinued operations, net of
tax
|
(338,637 | ) | (199,393 | ) | 139,244 | 69.8 | ||||||||||
(Benefit
from) provision for income taxes
|
(45,200 | ) | 54,083 | (99,283 | ) | (183.6 | ) | |||||||||
Minority
interest in income of subsidiary
|
3,997 | 3,910 | 87 | 2.2 | ||||||||||||
Net
loss from continuing operations
|
(297,434 | ) | (257,386 | ) | 40,048 | 15.6 | ||||||||||
Loss
from discontinued operations, net of tax
|
(5,510 | ) | (134,114 | ) | (128,604 | ) | (95.9 | ) | ||||||||
Net
loss
|
$ | (302,944 | ) | $ | (391,500 | ) | $ | (88,556 | ) | (22.6 | )% |
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$316,416
|
$319,552
|
$(3,136)
|
(1.0)%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$81,934
|
$73,574
|
$8,360
|
11.4%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$ 104,524
|
$ 101,522
|
$3,002
|
3.0%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$35,280
|
$ 27,328
|
$7,952
|
29.1%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$1,777
|
$ 2,991
|
$(1,214)
|
(40.6)%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$19,124
|
$ 14,768
|
$4,356
|
29.5%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$423,220
|
$ 211,051
|
$212,169
|
100.5%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$ 491
|
$ 1,242
|
$(751)
|
(60.5)%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$59,689
|
$ 72,770
|
$(13,081)
|
(18.0)%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$74,017
|
$ -
|
$74,017
|
-%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$3,652
|
$15,836
|
$(12,184)
|
(76.9)%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$(45,200)
|
$54,083
|
$(99,283)
|
(183.6)%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2008
|
2007
|
|||
$(5,510)
|
$ (134,114)
|
$(128,604)
|
(95.9)%
|
Years Ended
December 31,
|
Increase/(Decrease)
|
|||||||||||||||
2007
|
2006
|
|
||||||||||||||
(As
Adjusted – See
Note
1 Below)
|
|
|||||||||||||||
Statements
of Operations:
|
||||||||||||||||
Net
revenue
|
$ | 319,552 | $ | 321,625 | $ | (2,073 | ) | (0.6 | )% | |||||||
Operating
expenses:
|
||||||||||||||||
Programming
and technical, excluding stock-based compensation
|
73,574 | 68,216 | 5,358 | 7.9 | ||||||||||||
Selling,
general and administrative, excluding stock-based
compensation
|
101,522 | 95,928 | 5,594 | 5.8 | ||||||||||||
Corporate
selling, general and administrative, excluding stock-based
compensation
|
27,328 | 26,296 | 1,032 | 3.9 | ||||||||||||
Stock-based
compensation
|
2,991 | 4,633 | (1,642 | ) | (35.4 | ) | ||||||||||
Depreciation
and amortization
|
14,768 | 13,890 | 878 | 6.3 | ||||||||||||
Impairment
of long-lived assets
|
211,051 | - | 211,051 | - | ||||||||||||
Total
operating expenses
|
431,234 | 208,963 | 222,271 | 106.4 | ||||||||||||
Operating
(loss) income
|
(111,682 | ) | 112,662 | (224,344 | ) | (199.1 | ) | |||||||||
Interest
income
|
1,242 | 1,393 | (151 | ) | (10.8 | ) | ||||||||||
Interest
expense
|
72,770 | 72,932 | (162 | ) | (0.2 | ) | ||||||||||
Equity
in loss of affiliated company
|
15,836 | 2,341 | 13,495 | 576.5 | ||||||||||||
Other
expense, net
|
347 | 283 | 64 | 22.6 | ||||||||||||
(Loss)
income before provision for income taxes, minority interest in income of
subsidiaries and income from discontinued operations, net of
tax
|
(199,393 | ) | 38,499 | (237,892 | ) | (617.9 | ) | |||||||||
Provision
for income taxes
|
54,083 | 18,260 | 35,823 | 196.2 | ||||||||||||
Minority
interest in income of subsidiary
|
3,910 | 3,004 | 906 | 30.2 | ||||||||||||
Net
(loss) income from continuing operations
|
(257,386 | ) | 17,235 | (274,621 | ) | (1,593.4 | ) | |||||||||
Loss
from discontinued operations, net of tax
|
(134,114 | ) | (23,965 | ) | (110,149 | ) | 459.6 | |||||||||
Net
loss
|
$ | (391,500 | ) | $ | (6,730 | ) | $ | (384,770 | ) | (5,717.3 | )% |
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$319,552
|
$321,625
|
$(2,073)
|
(0.6)%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$73,574
|
$68,216
|
$5,358
|
7.9%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$101,522
|
$95,928
|
$5,594
|
5.8%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$27,328
|
$26,296
|
$1,032
|
3.9%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$2,991
|
$4,633
|
$(1,642)
|
(35.4)%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$14,768
|
$13,890
|
$878
|
6.3%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$211,051
|
$ -
|
$211,051
|
-%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$ 1,242
|
$ 1,393
|
$(151)
|
(10.8)%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$72,770
|
$72,932
|
$(162)
|
(0.2)%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$15,836
|
$2,341
|
$13,495
|
576.5%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$ 54,083
|
$18,260
|
$35,823
|
196.2
%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$3,910
|
$3,004
|
$906
|
30.2%
|
Year Ended
December 31,
|
Increase/(Decrease)
|
|||
2007
|
2006
|
|||
$(134,114)
|
$(23,965)
|
$110,149
|
459.6%
|
Type
of Debt
|
Amount
Outstanding
|
Applicable
Interest Rate
|
|||||
(In
millions)
|
|||||||
Senior
bank term debt (swap matures June 16, 2010)(1)
|
$
|
25,000
|
6.27
|
%
|
|||
Senior
bank term debt (swap matures June 16, 2012)(1)
|
$
|
25,000
|
6.47
|
%
|
|||
Senior
bank term debt (subject to variable interest rates)(2)
|
$
|
114,701
|
4.81
|
%
|
|||
Senior
bank revolving debt (subject to variable interest
rates)(3)
|
$
|
206,500
|
5.40
|
%
|
|||
87/8% Senior
Subordinated Notes (fixed rate)
|
$
|
103,951
|
8.88
|
%
|
|||
63/8% Senior
Subordinated Notes (fixed rate)
|
$
|
200,000
|
6.38
|
%
|
(1)
|
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 2.25% and is
incorporated into the applicable interest rates set forth
above.
|
||
(2)
|
Subject
to rolling three month LIBOR plus a spread currently at 2.25%;
incorporated into the applicable interest rate set forth
above.
|
||
(3)
|
Subject
to the prime rate plus a spread currently at 1.25% and rolling three month
and six month LIBOR plus a spread currently at 2.25%; incorporated into
the applicable interest rate set forth
above.
|
2008
|
2007
|
|||||||
(In
thousands)
|
||||||||
Net
cash flows from operating activities
|
$ | 13,832 | $ | 44,014 | ||||
Net
cash flows from investing activities
|
66,031 | 78,468 | ||||||
Net
cash flows used in financing activities
|
(81,821 | ) | (130,641 | ) |
Stock-Based
Compensation
|
Goodwill and Radio Broadcasting
Licenses
|
Impairment
of Intangible Assets Excluding Goodwill and Radio Broadcasting
Licenses
|
Revenue
Recognition
|
Equity
Accounting
|
Contingencies
and Litigation
|
Payments Due by Period
|
||||||||||||||||||||||||||||
Contractual Obligations
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014 and Beyond
|
|
Total
|
||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||
87/8% Senior
Subordinated Notes(1)
|
$ | 9,122 | $ | 9,009 | $ | 110,519 | $ | — | $ | — | $ | — | $ | 128,650 | ||||||||||||||
63/8% Senior
Subordinated Notes(1)
|
12,750 | 12,750 | 12,750 | 12,750 | 206,375 | — | 257,375 | |||||||||||||||||||||
Credit
facilities(2)
|
62,664 | 66,377 | 279,359 | 195 | — | — | 408,595 | |||||||||||||||||||||
Capital
lease obligation
|
214 | — | — | — | — | — | 214 | |||||||||||||||||||||
Other
operating contracts/ agreements(3)
|
48,874 | 23,483 | 22,956 | 23,092 | 11,097 | 11,301 | 140,803 | |||||||||||||||||||||
Operating
lease obligation
|
8,404 | 7,217 | 5,861 | 4,306 | 3,612 | 10,222 | 39,622 | |||||||||||||||||||||
Total
|
$ | 142,028 | $ | 118,836 | $ | 431,445 | $ | 40,343 | $ | 221,084 | $ | 21,523 | $ | 975,259 |
(1)
|
Includes
interest obligations based on current effective interest rate on senior
subordinated notes outstanding as of December 31,
2008.
|
(2)
|
Includes
interest obligations based on current effective interest rate and
projected interest expense on credit facilities outstanding as of
December 31, 2008, and with a projected maturity of January 2011.
(See Note 9 of the audited consolidated financial statements included in
Item 15 – Long-Term
Debt.)
|
(3)
|
Includes
employment contracts, severance obligations, on-air talent contracts,
consulting agreements, equipment rental agreements, programming related
agreements, and other general operating
agreements.
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS
WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
|
/s/ Ernst &
Young LLP
|
ITEM 10.
|
DIRECTORS
AND EXECUTIVE OFFICERS OF THE
REGISTRANT
|
ITEM 11.
|
EXECUTIVE
COMPENSATION
|
ITM 12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN
RELATIONSHIPS AND RELATED
TRANSACTIONS
|
ITEM 14.
|
PRINCIPAL
ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND
FINANCIAL STATEMENT SCHEDULES
|
Exhibit
Number
|
Description
|
|
3.1
|
Amended
and Restated Certificate of Incorporation of Radio One, Inc. (dated as of
May 4, 2000), as filed with the State of Delaware on May 9, 2000
(incorporated by reference to Radio One’s Quarterly Report on
Form 10-Q for the period ended March 31,
2000).
|
|
3.1.1
|
Certificate
of Amendment (dated as of September 21, 2000) of the Amended and
Restated Certificate of Incorporation of Radio One, Inc. (dated as of
May 4, 2000), as filed with the State of Delaware on
September 21, 2000 (incorporated by reference to Radio One’s Current
Report on Form 8-K filed October 6, 2000).
|
|
3.2
|
Amended
and Restated By-laws of Radio One, Inc. amended as of June 5, 2001
(incorporated by reference to Radio One’s Quarterly Report on
Form 10-Q filed August 14, 2001).
|
|
4.1
|
Certificate
Of Designations, Rights and Preferences of the 61/2% Convertible
Preferred Securities Remarketable Term Income Deferrable Equity Securities
(HIGH TIDES) of Radio One, Inc., as filed with the State of Delaware on
July 13, 2000 (incorporated by reference to Radio One’s Quarterly
Report on Form 10-Q for the period ended June 30,
2000).
|
|
4.2
|
Indenture
dated May 18, 2001 among Radio One, Inc., the Guarantors listed
therein, and United States Trust Company of New York (incorporated by
reference to Radio One’s Registration Statement on Form S-4, filed
July 17, 2001 (File No. 333-65278)).
|
|
4.3
|
First
Supplemental Indenture, dated August 10, 2001, among Radio One, Inc.,
the Guaranteeing Subsidiaries and other Guarantors listed therein, and The
Bank of New York, as Trustee, (incorporated by reference to Radio One’s
Registration Statement on Form S-4, filed October 4, 2001 (File
No. 333-65278)).
|
|
4.4
|
Second
Supplemental Indenture dated as of December 31, 2001, among Radio
One, Inc., the Guaranteeing Subsidiaries and other Guarantors listed
therein, and The Bank of New York, as Trustee, (incorporated by reference
to Radio One’s registration statement on Form S-3, filed
January 29, 2002 (File No. 333-81622)).
|
|
4.5
|
Third
Supplemental Indenture dated as of July 17, 2003, among Radio One,
Inc., the Guaranteeing Subsidiaries and other Guarantors listed therein,
and The Bank of New York, as Trustee, (incorporated by reference to Radio
One’s Annual Report on Form 10-K for the period ended
December 31, 2003).
|
|
4.6
|
Fourth
Supplemental Indenture dated as of October 19, 2004, among Radio One,
Inc., the Guaranteeing Subsidiaries and other Guarantors listed therein,
and The Bank of New York, as Trustee, (incorporated by reference to Radio
One’s Quarterly Report on Form 10-Q for the period ended
September 30, 2004).
|
|
4.7
|
Fifth
Supplemental Indenture dated as of February 8, 2005, among Radio One,
Inc., the Guaranteeing Subsidiaries and other Guarantors listed therein,
and The Bank of New York, as Trustee (incorporated by reference to Radio
One’s Annual Report on Form 10-K for the period ended
December 31, 2004).
|
|
4.8
|
Indenture
dated February 10, 2005 between Radio One, Inc. and The Bank of New
York, as Trustee, (incorporated by reference to Radio One’s Current Report
on Form 8-K filed February 10, 2005).
|
|
4.9
|
Amended
and Restated Stockholders Agreement dated as of September 28, 2004
among Catherine L. Hughes and Alfred C. Liggins, III (incorporated by
reference to Radio One’s Quarterly Report on Form 10-Q for the
period ended June 30, 2005).
|
|
4.10
|
Sixth
Supplemental Indenture dated as of February 15, 2006 among Radio One,
Inc., the Guaranteeing Subsidiary and the Existing Guarantors listed
therein, and The Bank of New York, as successor trustee under the
Indenture dated May 18, 2001, as amended (incorporated by reference
to Radio One’s Quarterly Report on Form 10-Q for the period ended
June 30, 2006).
|
|
4.11
|
First
Supplemental Indenture dated as of February 15, 2006 among Radio One,
Inc., Syndication One, Inc., the other Guarantors listed therein, and The
Bank of New York, as trustee under the Indenture dated February 10,
2005 (incorporated by reference to Radio One’s Quarterly Report on
Form 10-Q for the period ended June 30,
2006).
|
|
4.12
|
Seventh
Supplemental Indenture dated as of December 22, 2006 among Radio One,
Inc., the Guaranteeing Subsidiary and the Existing Guarantors listed
therein, and The Bank of New York, as successor trustee under the
Indenture dated May 18, 2001, as amended.
|
|
4.13
|
Second
Supplemental Indenture dated as of December 22, 2006 among Radio One,
Inc., Magazine One, Inc., the other Guarantors listed therein, and The
Bank of New York, as trustee under the Indenture dated February 10,
2005.
|
|
10.1
|
Credit
Agreement, dated June 13, 2005, by and among Radio One Inc., Wachovia
Bank and the other lenders party thereto (incorporated by reference to
Radio One’s Current Report on Form 8-K filed June 17, 2005 (File
No. 000-25969)).
|
|
10.2
|
Guarantee
and Collateral Agreement, dated June 13, 2005, made by Radio One,
Inc. and its Restricted Subsidiaries in favor of Wachovia Bank
(incorporated by reference to Radio One’s Current Report on Form 8-K
filed June 17, 2005 (File No. 000-25969)).
|
|
10.3
|
Amended
and Restated Employment Agreement between Radio One, Inc. and Linda J.
Eckard Vilardo dated October 31, 2000 (incorporated by reference to
Radio One’s Annual Report on Form 10-K for the period ended
December 31, 2000).
|
|
10.4
|
Promissory
Note and Stock Pledge Agreement dated October 31, 2000 between Radio
One, Inc. and Linda J. Eckard Vilardo (incorporated by reference to Radio
One’s Annual Report on Form 10-K for the period ended
December 31, 2002).
|
|
10.5
|
Promissory
Note and Stock Pledge Agreement dated April 9, 2001 between Radio
One, Inc. and Alfred C. Liggins, III (incorporated by reference to
Radio One’s Annual Report on Form 10-K for the period ended
December 31, 2002).
|
|
10.6
|
First
Amendment to Credit Agreement dated as of April 26, 2006, to Credit
Agreement dated June 13, 2005, by and among Radio One, Inc., Wachovia
Bank and the other lenders party thereto (incorporated by reference to
Radio One’s Current Report on Form 8-K filed April 28, 2006
(File No. 000-25969)).
|
|
10.7
|
Waiver
to Credit Agreement dated July 12, 2007, by and among Radio One, Inc., the
several Lenders thereto, and Wachovia Bank National Association, as
Administrative Agent (incorporated by reference to Radio One’s
Quarterly Report on Form 10-Q for the period ended June 30,
2007).
|
|
10.8
|
Employment
Agreement between Radio One, Inc. and Barry A. Mayo dated August 6, 2007
(incorporated by reference to Radio One’s Quarterly Report on
Form 10-Q for the period ended June 30,
2007).
|
|
10.9
|
Second
Amendment to Credit Agreement and Waiver dated as of September 14, 2007,
by and among Radio One, Inc., the several Lenders thereto, and Wachovia
Bank National Association, as Administrative Agent (incorporated by
reference to Radio One’s Current Report on Form 8-K filed September
18, 2007 (File No. 000-25969)).
|
|
10.10
|
Waiver
and Consent to Credit Agreement dated May 14, 2007, by and among Radio
One, Inc., the several Lenders thereto, and Wachovia Bank National
Association, as Administrative Agent (incorporated by reference to Radio
One’s Current Report on Form 8-K filed May 18, 2007 (File No.
000-25969)).
|
|
10.11
|
Consent
to Credit Agreement dated March 30, 2007, by and among Radio One, Inc.,
the several Lenders thereto, and Wachovia Bank National Association, as
Administrative Agent (incorporated by reference to Radio One’s Current
Report on Form 8-K filed April 5, 2007 (File No.
000-25969)).
|
|
10.12
|
Employment
Agreement between Radio One, Inc. and Peter D. Thompson dated March 31,
2008 (incorporated by reference to Radio One’s Current Report on
Form 8-K filed April 2, 2008 (File No.
000-25969)).
|
|
10.13
|
Employment
Agreement between Radio One, Inc. and Alfred C. Liggins, III dated
April 16, 2008 (incorporated by reference to Radio One’s Current
Report on Form 8-K filed April 18, 2008 (File No.
000-25969)).
|
|
10.14
|
Employment
Agreement between Radio One, Inc. and Catherine L. Hughes dated
April 16, 2008 (incorporated by reference to Radio One’s Current
Report on Form 8-K filed April 18, 2008 (File No.
000-25969)).
|
|
10.15
|
First
Amendment dated April 16, 2008 to the Amended and Restated Employment
Agreement between Radio One, Inc. and Linda J. Vilardo dated as of October
31, 2000 (incorporated by reference to Radio One’s Current Report on
Form 8-K filed April 18, 2008 (File No.
000-25969)).
|
|
10.16
|
Employment
Agreement Amendment and Modification dated as of October 7, 2008 between
Radio One, Inc. and Peter D. Thompson (incorporated by reference to Radio
One’s Current Report on Form 8-K filed December 12, 2008 (File No.
000-25969)).
|
|
10.17
|
Employment
Agreement Amendment and Modification dated as of October 7, 2008 between
Radio One, Inc. and Barry A. Mayo (incorporated by reference to Radio
One’s Current Report on Form 8-K filed December 12, 2008 (File No.
000-25969)).
|
|
21.1
|
Subsidiaries
of Radio One, Inc.
|
|
23.1
|
Consent
of Ernst & Young LLP.
|
|
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C. § 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2
|
Certification
of Chief Financial Officer pursuant to 18 U.S.C. § 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
By: /s/ Catherine
L. Hughes
|
Name: Catherine
L. Hughes
|
Title: Chairperson, Director and
Secretary
|
By: /s/ Alfred
C. Liggins, III
|
Name: Alfred
C. Liggins, III
|
Title: Chief Executive Officer,
President and Director
|
By: /s/ Terry
L. Jones
|
Name: Terry
L. Jones
|
Title: Director
|
By: /s/ Brian
W. McNeill
|
Name: Brian
W. McNeill
|
Title: Director
|
By: /s/ B.
Doyle Mitchell, Jr.
|
Name: B.
Doyle Mitchell, Jr.
|
Title: Director
|
By: /s/ D.
Geoffrey Armstrong
|
Name: D.
Geoffrey Armstrong
|
Title: Director
|
By: /s/ Ronald
E. Blaylock
|
Name: Ronald
E. Blaylock
|
Title: Director
|
As of December 31,
|
|||||||||
2008
|
2007
|
||||||||
(As
Adjusted -See
Note 1)
|
|||||||||
(In thousands, except share data) | |||||||||
ASSETS
|
|||||||||
CURRENT
ASSETS:
|
|||||||||
Cash
and cash equivalents
|
$ | 22,289 | $ | 24,247 | |||||
Trade
accounts receivable, net of allowance for doubtful accounts of $3,789 and
$2,021, respectively
|
49,937 | 50,425 | |||||||
Prepaid
expenses and other current assets
|
5,560 | 6,118 | |||||||
Deferred tax
assets
|
108 | 158 | |||||||
Current
assets from discontinued operations
|
303 | 3,249 | |||||||
Total
current assets
|
78,197 | 84,197 | |||||||
PROPERTY
AND EQUIPMENT, net
|
48,602 | 44,740 | |||||||
GOODWILL
|
137,095 | 146,156 | |||||||
RADIO
BROADCASTING LICENSES
|
763,657 | 1,118,747 | |||||||
OTHER
INTANGIBLE ASSETS, net
|
44,217 | 45,418 | |||||||
INVESTMENT
IN AFFILIATED COMPANY
|
47,852 | 48,399 | |||||||
OTHER
ASSETS
|
5,797 | 8,573 | |||||||
NON-CURRENT
ASSETS FROM DISCONTINUED OPERATIONS
|
60 | 152,124 | |||||||
Total
assets
|
$ | 1,125,477 | $ | 1,648,354 | |||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||||
CURRENT
LIABILITIES:
|
|||||||||
Accounts
payable
|
$ | 3,691 | $ | 4,958 | |||||
Accrued
interest
|
10,082 | 19,004 | |||||||
Accrued
compensation and related benefits
|
10,534 | 16,319 | |||||||
Income
taxes payable
|
30 | 4,463 | |||||||
Other
current liabilities
|
12,477 | 12,124 | |||||||
Current
portion of long-term debt
|
43,807 | 26,004 | |||||||
Current
liabilities from discontinued operations
|
582 | 2,704 | |||||||
Total
current liabilities
|
81,203 | 85,576 | |||||||
LONG-TERM
DEBT, net of current portion
|
631,555 | 789,500 | |||||||
OTHER
LONG-TERM LIABILITIES
|
11,008 | 5,227 | |||||||
DEFERRED TAX LIABILITIES
|
86,236 | 134,961 | |||||||
NON-CURRENT
LIABILITIES FROM DISCONTINUED OPERATIONS
|
- | 483 | |||||||
Total
liabilities
|
810,002 | 1,015,747 | |||||||
MINORITY
INTEREST IN SUBSIDIARIES
|
1,981 | 3,889 | |||||||
STOCKHOLDERS’
EQUITY:
|
|||||||||
Convertible
preferred stock, $.001 par value; 1,000,000 shares authorized;
no shares outstanding at December 31, 2008 and 2007,
respectively
|
— | — | |||||||
Common
stock — Class A, $.001 par value, 30,000,000 shares
authorized; 3,016,730 and 4,321,378 shares issued and outstanding at
December 31, 2008 and 2007, respectively
|
3 | 4 | |||||||
Common
stock — Class B, $.001 par value, 150,000,000 shares
authorized; 2,861,843 shares issued and outstanding at December 31, 2008
and 2007, respectively
|
3 | 3 | |||||||
Common
stock — Class C, $.001 par value, 150,000,000 shares
authorized; 3,121,048 shares issued and outstanding at December 31, 2008
and 2007, respectively
|
3 | 3 | |||||||
Common
stock — Class D, $.001 par value, 150,000,000 shares
authorized; 69,971,551 and 88,638,576 shares issued and outstanding as of
December 31, 2008 and 2007, respectively
|
70 | 89 | |||||||
Accumulated
other comprehensive (loss) income
|
(2,981 | ) | 644 | ||||||
Stock
subscriptions receivable
|
— | (1,717 | ) | ||||||
Additional
paid-in capital
|
1,033,921 | 1,044,273 | |||||||
Accumulated
deficit
|
(717,525 | ) | (414,581 | ) | |||||
Total
stockholders’ equity
|
313,494 | 628,718 | |||||||
Total
liabilities and stockholders’ equity
|
$ | 1,125,477 | $ | 1,648,354 |
For the Years Ended
December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(As
Adjusted - See Note 1)
|
||||||||||||
(In
thousands, except share data)
|
||||||||||||
NET
REVENUE
|
$ | 316,416 | $ | 319,552 | $ | 321,625 | ||||||
OPERATING
EXPENSES:
|
||||||||||||
Programming
and technical, including stock-based compensation of $187, $479 and $602,
respectively
|
82,121 | 74,053 | 68,818 | |||||||||
Selling,
general and administrative, including stock-based compensation of $513,
$1,444 and $2,088, respectively
|
105,037 | 102,966 | 98,016 | |||||||||
Corporate
selling, general and administrative, including stock-based compensation of
$1,077, $1,068 and $1,943 respectively
|
36,357 | 28,396 | 28,239 | |||||||||
Depreciation
and amortization
|
19,124 | 14,768 | 13,890 | |||||||||
Impairment
of long-lived assets
|
423,220 | 211,051 | — | |||||||||
Total
operating expenses
|
665,859 | 431,234 | 208,963 | |||||||||
Operating
(loss) income
|
(349,443 | ) | (111,682 | ) | 112,662 | |||||||
INTEREST
INCOME
|
491 | 1,242 | 1,393 | |||||||||
INTEREST
EXPENSE
|
59,689 | 72,770 | 72,932 | |||||||||
GAIN
ON RETIREMENT OF DEBT
|
74,017 | — | — | |||||||||
EQUITY
IN LOSS OF AFFILIATED COMPANY
|
3,652 | 15,836 | 2,341 | |||||||||
OTHER
EXPENSE, net
|
361 | 347 | 283 | |||||||||
(Loss)
income before (benefit from) provision for income taxes, minority interest
in income of subsidiaries and loss from discontinued operations, net of
tax
|
(338,637 | ) | (199,393 | ) | 38,499 | |||||||
(BENEFIT
FROM) PROVISION FOR INCOME TAXES
|
(45,200 | ) | 54,083 | 18,260 | ||||||||
MINORITY
INTEREST IN INCOME OF SUBSIDIARIES
|
3,997 | 3,910 | 3,004 | |||||||||
Net
(loss) income from continuing operations
|
(297,434 | ) | (257,386 | ) | 17,235 | |||||||
LOSS
FROM DISCONTINUED OPERATIONS, net of tax
|
(5,510 | ) | (134,114 | ) | (23,965 | ) | ||||||
NET
LOSS
|
$ | (302,944 | ) | $ | (391,500 | ) | $ | (6,730 | ) | |||
BASIC
AND DILUTED NET LOSS AVAILABLE TO COMMON STOCKHOLDERS:
|
||||||||||||
Continuing
operations
|
$ | (3.16 | ) | $ | (2.61 | ) | $ | 0.17 | ||||
Discontinued
operations, net of tax
|
(0.06 | ) | (1.36 | ) | (0.24 | ) | ||||||
Net
loss available to common stockholders
|
$ | (3.22 | ) | $ | (3.97 | ) | $ | (0.07 | ) | |||
WEIGHTED
AVERAGE SHARES OUTSTANDING:
|
||||||||||||
Basic
|
94,118,699 | 98,710,633 | 98,709,311 | |||||||||
Diluted
|
94,118,699 | 98,710,633 | 98,709,311 |
Convertible
Preferred
Stock
|
Common
Stock
Class A
|
Common
Stock
Class B
|
Common
Stock
Class C
|
Common
Stock
Class D
|
Comprehensive
Income (Loss)
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Stock
Subscriptions
Receivable
|
Additional
Paid-In
Capital
|
Accumulated
Deficit
|
Total
Stockholders’
Equity
|
||||||||||||||||||||||||||||||||||
(As
Adjusted
-
See Note 1)
|
||||||||||||||||||||||||||||||||||||||||||||
(In
thousands, except share data)
|
||||||||||||||||||||||||||||||||||||||||||||
BALANCE,
as of December 31, 2005
|
$ | — | $ | 12 | $ | 3 | $ | 3 | $ | 81 | $ | 958 | $ | (1,566 | ) | $ | 1,035,655 | $ | (15,456 | ) | $ | 1,019,690 | ||||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||||||||||||||
Net
loss
|
— | — | — | — | — | $ | (6,730 | ) | — | — | — | (6,730 | ) | (6,730 | ) | |||||||||||||||||||||||||||||
Change
in unrealized net gain on derivative and hedging activities, net of
taxes
|
— | — | — | — | — | 9 | 9 | — | — | — | 9 | |||||||||||||||||||||||||||||||||
Comprehensive
loss
|
$ | (6,721 | ) | |||||||||||||||||||||||||||||||||||||||||
Adjustment
of basis for investment in affiliated company
|
— | — | — | — | — | — | — | (152 | ) | — | (152 | ) | ||||||||||||||||||||||||||||||||
Vesting
of non-employee restricted stock
|
— | — | — | — | — | — | — | (55 | ) | — | (55 | ) | ||||||||||||||||||||||||||||||||
Stock-based
compensation expense
|
— | — | — | — | — | — | — | 5,529 | — | 5,529 | ||||||||||||||||||||||||||||||||||
Interest
income on stock subscriptions receivable
|
— | — | — | — | — | — | (76 | ) | — | — | (76 | ) | ||||||||||||||||||||||||||||||||
Conversion
of 6,899 shares of Class A common stock to 6,899 shares of
Class D common stock
|
— | (6 | ) | — | — | 6 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Employee
exercise of options for 8,460 shares of common stock
|
— | — | — | — | — | — | — | 52 | — | 52 | ||||||||||||||||||||||||||||||||||
BALANCE,
as of December 31, 2006
|
— | 6 | 3 | 3 | 87 | 967 | (1,642 | ) | 1,041,029 | (22,186 | ) | 1,018,267 | ||||||||||||||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||||||||||||||
Net
loss
|
— | — | — | — | — | $ | (391,500 | ) | — | — | — | (391,500 | ) | (391,500 | ) | |||||||||||||||||||||||||||||
Change
in unrealized net gain on derivative and hedging activities, net of
taxes
|
— | — | — | — | — | (323 | ) | (323 | ) | — | — | — | (323 | ) | ||||||||||||||||||||||||||||||
Comprehensive
loss
|
$ | (391,823 | ) | |||||||||||||||||||||||||||||||||||||||||
Vesting
of non-employee restricted stock
|
— | — | — | — | — | — | — | (63 | ) | — | (63 | ) | ||||||||||||||||||||||||||||||||
Stock-based
compensation expense
|
— | — | — | — | — | — | — | 3,307 | — | 3,307 | ||||||||||||||||||||||||||||||||||
Interest
income on stock subscriptions receivable
|
— | — | — | — | — | — | (75 | ) | — | — | (75 | ) | ||||||||||||||||||||||||||||||||
Cumulative
impact of change in accounting for uncertainties in income
taxes
|
— | — | — | — | — | — | (895 | ) | (895 | ) | ||||||||||||||||||||||||||||||||||
Conversion
of 1,998,281 shares of Class A common stock to
1,998,281 shares of Class D common stock
|
— | (2 | ) | — | — | 2 | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Conversion
of 5,620 shares of Class B common stock to 5,620 shares of
Class D common stock
|
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Conversion
of 11,410 shares of Class C common stock to 11,410 shares of
Class D common stock common stock
|
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
BALANCE,
as of December 31, 2007
|
— | 4 | 3 | 3 | 89 | 644 | (1,717 | ) | 1,044,273 | (414,581 | ) | 628,718 | ||||||||||||||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||||||||||||||||||
Net
loss
|
— | — | — | — | — | $ | (302,944 | ) | — | — | — | (302,944 | ) | (302,944 | ) | |||||||||||||||||||||||||||||
Change
in unrealized net gain on derivative and hedging activities, net of
taxes
|
— | — | — | — | — | (3,625 | ) | (3,625 | ) | — | — | — | (3,625 | ) | ||||||||||||||||||||||||||||||
Comprehensive
loss
|
$ | (306,569 | ) | |||||||||||||||||||||||||||||||||||||||||
Repurchase
of 421,661 shares of Class A common stock and 20,029,538 shares of Class D
common stock
|
— | — | — | — | (20 | ) | — | — | (12,084 | ) | — | (12,104 | ) | |||||||||||||||||||||||||||||||
Conversion
of 882,987 shares of Class A common stock to 882,987 shares of
Class D common stock common stock
|
(1 | ) | 1 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Vesting
of non-employee restricted stock
|
— | — | — | — | — | — | — | 89 | — | 89 | ||||||||||||||||||||||||||||||||||
Interest
income on stock subscriptions receivable
|
— | — | — | — | — | — | (20 | ) | — | — | (20 | ) | ||||||||||||||||||||||||||||||||
Repayment
of officer’s loan
|
— | — | — | — | — | — | 1,737 | — | — | 1,737 | ||||||||||||||||||||||||||||||||||
Stock-based
compensation expense
|
— | — | — | — | — | — | — | 1,643 | — | 1,643 | ||||||||||||||||||||||||||||||||||
BALANCE,
as of December 31, 2008
|
$ | — | $ | 3 | $ | 3 | $ | 3 | $ | 70 | $ | (2,981 | ) | $ | — | $ | 1,033,921 | $ | (717,525 | ) | $ | 313,494 | ||||||||||||||||||||||
For the Years Ended
December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(As
Adjusted -See Note 1)
|
||||||||||||
(In
thousands)
|
||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
(loss) income
|
$ | (302,944 | ) | $ | (391,500 | ) | $ | (6,730 | ) | |||
Adjust
for net (loss) income from discontinued operations
|
5,510 | 134,114 | 23,965 | |||||||||
Net
(loss) income from continuing operations
|
(297,434 | ) | (257,386 | ) | 17,235 | |||||||
Adjustments
to reconcile net (loss) income to net cash flows from operating
activities:
|
||||||||||||
Depreciation
and amortization
|
19,124 | 14,768 | 13,890 | |||||||||
Amortization
of debt financing costs
|
2,591 | 2,241 | 2,097 | |||||||||
Amortization
of production content
|
— | — | 2,277 | |||||||||
Deferred
income taxes
|
(49,687 | ) | (28,013 | ) | 2,066 | |||||||
Loss
on write-down of investment
|
— | — | 270 | |||||||||
Impairment
of long-lived assets
|
423,220 | 211,051 | — | |||||||||
Equity
in loss of affiliated company
|
3,652 | 15,836 | 2,341 | |||||||||
Minority
interest in income of subsidiaries
|
3,997 | 3,910 | 3,004 | |||||||||
Stock-based
and other non-cash compensation
|
1,732 | 3,037 | 5,981 | |||||||||
Gain
on retirement of debt
|
(74,017 | ) | — | — | ||||||||
Amortization
of contract inducement and termination fee
|
(1,895 | ) | (1,809 | ) | (2,065 | ) | ||||||
Change
in interest due on stock subscriptions receivable
|
(20 | ) | (75 | ) | (76 | ) | ||||||
Effect
of change in operating assets and liabilities, net of assets acquired and
disposed of:
|
||||||||||||
Trade
accounts receivable
|
488 | 3,769 | (5,410 | ) | ||||||||
Prepaid
expenses and other current assets
|
27 | (1,185 | ) | 2,396 | ||||||||
Income
tax receivable
|
— | 1,296 | 2,639 | |||||||||
Other
assets
|
(581 | ) | (361 | ) | 1,000 | |||||||
Accounts
payable
|
(1,058 | ) | (4,799 | ) | 2,670 | |||||||
Accrued
interest
|
(8,921 | ) | (270 | ) | (35 | ) | ||||||
Accrued
compensation and related benefits
|
(5,994 | ) | (1,092 | ) | (2,140 | ) | ||||||
Income
taxes payable
|
(4,433 | ) | 1,997 | (1,340 | ) | |||||||
Other
liabilities
|
5,705 | 2,509 | 1,904 | |||||||||
Net
cash flows from operating activities from discontinued
operations
|
(2,664 | ) | 78,590 | 28,756 | ||||||||
Net
cash flows from operating activities
|
13,832 | 44,014 | 77,460 | |||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Purchases
of property and equipment
|
(12,597 | ) | (10,203 | ) | (13,601 | ) | ||||||
Equity
investments
|
— | (12,590 | ) | (17,086 | ) | |||||||
Cash
paid for acquisitions
|
(70,455 | ) | — | (43,188 | ) | |||||||
Deposits
for station equipment and purchases of other assets
|
(215 | ) | (5,904 | ) | (1,129 | ) | ||||||
Proceeds
from sale of assets
|
150,224 | 108,100 | 30,000 | |||||||||
Purchase
of intangible assets
|
(926 | ) | — | — | ||||||||
Net
cash flows used in investing activities from discontinued
operations
|
— | (935 | ) | (1,223 | ) | |||||||
Net
cash flows from (used in) investing activities
|
66,031 | 78,468 | (46,227 | ) | ||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Proceeds
from credit facility
|
227,000 | — | 33,000 | |||||||||
Repayment
of long-term debt
|
(120,787 | ) | (124,697 | ) | (48,020 | ) | ||||||
Proceeds
from exercise of stock options
|
— | — | 52 | |||||||||
Payment
of dividend to minority interest shareholders
|
(6,364 | ) | (2,940 | ) | (2,940 | ) | ||||||
Repayment
of credit facility
|
(170,299 | ) | — | — | ||||||||
Repayment
of other debt
|
(1,004 | ) | — | — | ||||||||
Repayment
of stock subscriptions receivable
|
1,737 | — | — | |||||||||
Payment
of bank financing costs
|
— | (3,004 | ) | — | ||||||||
Repurchase
of common stock
|
(12,104 | ) | — | — | ||||||||
Net
cash flows used in financing activities
|
(81,821 | ) | (130,641 | ) | (17,908 | ) | ||||||
(DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
(1,958 | ) | (8,159 | ) | 13,325 | |||||||
CASH
AND CASH EQUIVALENTS, beginning of year
|
24,247 | 32,406 | 19,081 | |||||||||
CASH
AND CASH EQUIVALENTS, end of year
|
$ | 22,289 | $ | 24,247 | $ | 32,406 | ||||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
Cash
paid for:
|
||||||||||||
Interest
|
$ | 68,611 | $ | 70,798 | $ | 70,876 | ||||||
Income
taxes
|
$ | 8,214 | $ | 6,093 | $ | 6,407 |
|
The
impact on the financial statements is as follows (in
thousands):
|
Selected
Balance Sheet Data
|
||||||||||
As
of December 31, 2007
|
||||||||||
As
Previously Reported*
|
Adjustments
|
As
Adjusted
|
||||||||
Investment
in Affiliated Company
|
$
|
52,782
|
$
|
(4,383
|
)
|
$
|
48,399
|
|||
Total
Assets
|
$
|
1,652,737
|
$
|
(4,383
|
)
|
$
|
1,648,354
|
|||
Accumulated
Deficit
|
$
|
(410,198
|
)
|
$
|
(4,383
|
)
|
$
|
(414,581
|
)
|
|
Total
Stockholders’ Equity
|
$
|
633,101
|
$
|
(4,383
|
)
|
$
|
628,718
|
Selected
Statement of Operations Data
|
|||||||||||
For
The Year Ended December 31, 2007
|
|||||||||||
As
Previously Reported*
|
Adjustments
|
As
Adjusted
|
|||||||||
Equity
in Loss of Affiliated Company
|
$
|
11,453
|
$
|
4,383
|
$
|
15,836
|
|||||
Loss
before benefit from income taxes, minority interest in income of
subsidiaries and discontinued operations
|
$
|
(195,010
|
) |
$
|
(4,383
|
)
|
$
|
(199,393
|
)
|
||
Net
loss from continuing operations
|
$
|
(253,003
|
)
|
$
|
(4,383
|
)
|
$
|
(257,386
|
)
|
||
Net
loss
|
$
|
(387,117
|
)
|
$
|
(4,383
|
)
|
$
|
(391,500
|
)
|
||
Basic
and Diluted Net Loss from Continuing Operations per Common
Share
|
$
|
(2.56
|
)
|
$
|
(0.05
|
)
|
$
|
(2.61
|
)
|
||
Basic
and Diluted Net Loss from Discontinued Operations per Common
Share
|
(1.36
|
)
|
0.00
|
(1.36
|
)
|
||||||
Basic
and Diluted Net Loss per Common Share
|
$
|
(3.92
|
)
|
$
|
(0.05
|
)
|
$
|
(3.97
|
)
|
(m)
|
Advertising
|
For the Years Ended December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(In
thousands)
|
||||||||||||
Net
loss
|
$ | (302,944 | ) | $ | (391,500 | ) | $ | (6,730 | ) | |||
Other
comprehensive (loss) income (net of tax of $0, $242 and $186,
respectively):
|
||||||||||||
Derivative
and hedging activities
|
(3,625 | ) | (323 | ) | 9 | |||||||
Comprehensive
loss
|
$ | (306,569 | ) | $ | (391,823 | ) | $ | (6,721 | ) |
Level 1: Inputs are
unadjusted quoted prices in active markets for identical assets and
liabilities that can be accessed at measurement
date.
|
Level 2: Observable
inputs other than those included in Level 1. For example, quoted prices
for similar assets or liabilities in active markets or quoted prices
for identical assets or liabilities in inactive
markets.
|
|
Level 3: Unobservable
inputs reflecting management’s own assumptions about the inputs used in
pricing the asset or liability.
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Liabilities
subject to fair value measurement:
|
||||||||||||||||
Interest
rate swaps (a)
|
$ | 2,983 | $ | — | $ | 2,983 | $ | — | ||||||||
Employment
agreement award (b)
|
4,326 | — | — | 4,326 | ||||||||||||
Total
|
$ | 7,309 | $ | — | $ | 2,983 | $ | 4,326 | ||||||||
(a)
Based on London Interbank Offered Rate (“LIBOR”).
|
||||||||||||||||
(b)
Pursuant to an employment agreement (the “Employment Agreement”) executed
in April 2008, the Chief Executive Officer (“CEO”) will be eligible to
receive an award amount equal to 8% of any proceeds from distributions or
other liquidity events in excess of the return of the Company’s aggregate
investment in TV One. The Company reviewed the factors underlying this
award during the quarter ended December 31, 2008 and concluded its
originally recorded value of approximately $4.6 million should be reduced
to $4.3 million. The Company’s obligation to pay the award will be
triggered only after the Company’s recovery of the aggregate amount of its
capital contribution in TV One and only upon actual receipt of
distributions of cash or marketable securities or proceeds from a
liquidity event with respect to the Company’s membership interest in TV
One. The CEO was fully vested in the award upon execution of the
Employment Agreement, and the award lapses upon expiration of the
Employment Agreement in April 2011, or earlier if the CEO voluntarily
leaves the Company or is terminated for cause. The Company engaged an
independent third party to perform a valuation of the award. (See
Note 8 – Derivative
Instruments and Hedging Activities.)
|
For
the Years Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(As
Adjusted – See Note 1)
|
||||||||||||
(In
thousands)
|
||||||||||||
Net
revenue
|
$ | 2,403 | $ | 29,819 | $ | 47,201 | ||||||
Station
operating expenses
|
4,310 | 30,772 | 35,119 | |||||||||
Depreciation
and amortization
|
81 | 1,510 | 2,387 | |||||||||
Impairment
of intangible assets
|
5,077 | 208,948 | 63,285 | |||||||||
Other
income
|
142 | 117 | 4 | |||||||||
Gain
on sale of assets
|
1,514 | 2,183 | 18,628 | |||||||||
Loss
before income taxes
|
(5,409 | ) | (209,111 | ) | (34,958 | ) | ||||||
Provision
for (benefit from) income taxes
|
101 | (74,997 | ) | (10,993 | ) | |||||||
Loss
from discontinued operations, net of tax
|
$ | (5,510 | ) | $ | (134,114 | ) | $ | (23,965 | ) |
As of December 31,
|
||||||||
2008
|
2007
|
|||||||
(As
Adjusted – See Note 1)
|
||||||||
(In
thousands)
|
||||||||
Currents
assets:
|
||||||||
Accounts
receivable, net of allowance for doubtful accounts
|
$ | 303 | $ | 2,725 | ||||
Prepaid
expenses and other current assets
|
— | 524 | ||||||
Total
current assets
|
303 | 3,249 | ||||||
Property
and equipment, net
|
60 | 3,349 | ||||||
Intangible
assets, net
|
— | 148,388 | ||||||
Other
assets
|
— | 386 | ||||||
Total
assets
|
$ | 363 | $ | 155,372 | ||||
Current
liabilities:
|
||||||||
Other
current liabilities
|
$ | 582 | $ | 2,704 | ||||
Total
current liabilities
|
582 | 2,704 | ||||||
Other
long-term liabilities
|
— | 483 | ||||||
Total
liabilities
|
$ | 582 | $ | 3,187 |
As of December 31,
|
Estimated
|
||||||||||||
2008
|
2007
|
Useful Lives
|
|||||||||||
(As
Adjusted – See Note 1)
|
|||||||||||||
(In thousands)
|
|||||||||||||
Land
and improvements
|
$ | 3,753 | $ | 3,278 |
—
|
||||||||
Buildings
and improvements
|
1,525 | 1,314 |
31
years
|
||||||||||
Transmitters
and towers
|
33,619 | 31,049 |
7-15
years
|
||||||||||
Equipment
|
44,334 | 39,146 |
3-7
years
|
||||||||||
Furniture
and Fixtures
|
7,386 | 6,895 |
7
years
|
||||||||||
Software
and Web Development
|
9,333 | 5,412 |
2-
3 years
|
||||||||||
Leasehold
improvements
|
18,174 | 16,147 |
Lease
Term
|
||||||||||
Construction-in-progress
|
2,258 | 2,614 |
—
|
||||||||||
120,382 | 105,855 | ||||||||||||
Less:
Accumulated depreciation and amortization
|
(71,780 | ) | (61,115 | ) | |||||||||
Property
and equipment, net
|
$ | 48,602 | $ | 44,740 |
Radio
Broadcasting Licenses
|
August
31, 2008
|
October
1, 2008
|
Discount
Rate
|
10.0%
|
10.5%
|
Market
Growth Rate Range
|
1.5%
- 2.5%
|
1.5%
- 2.5%
|
Market
Share Range
|
5.8%
- 27.0%
|
1.2%
- 27.0%
|
Operating
Profit Margin Range
|
34.0%
- 50.7%
|
20.0%
- 50.7%
|
Goodwill
|
August
31, 2008
|
October
1, 2008
|
Discount
Rate
|
10.0%
|
10.5%
|
Market
Growth Rate Range
|
1.5%
- 2.5%
|
1.5%
- 2.5%
|
Market
Share Range
|
5.2%
- 24.0%
|
1.1%
- 23.0%
|
Operating
Profit Margin Range
|
15.0%
- 61.0%
|
18.0%
- 60.0%
|
December 31,
|
||||||||
2008
|
2007
|
|||||||
(As
Adjusted – See Note 1)
|
||||||||
(In
thousands)
|
||||||||
Balance
as of January 1
|
$ | 146,156 | $ | 148,107 | ||||
Acquisitions
|
21,412 | - | ||||||
Impairment
|
(30,473 | ) | (1,951 | ) | ||||
Balance
as of December 31
|
$ | 137,095 | $ | 146,156 |
As of December 31,
|
Period
of
|
||||||||
2008
|
2007
|
Amortization
|
|||||||
(As
Adjusted – See Note 1)
|
|||||||||
(In
thousands)
|
|||||||||
Trade
names
|
$ | 17,109 | $ | 16,848 |
2-5
Years
|
||||
Talent
agreement
|
19,549 | 19,549 |
10 Years
|
||||||
Debt
financing costs
|
15,586 | 20,850 |
Term
of debt
|
||||||
Intellectual
property
|
13,011 | 14,532 |
4-10
Years
|
||||||
Affiliate
agreements
|
7,769 | 7,769 |
1-10
Years
|
||||||
Acquired
income leases
|
1,282 | - |
3-9
Years
|
||||||
Non-compete
agreements
|
1,260 | 210 |
1-3
Years
|
||||||
Advertiser
agreements
|
6,613 | - |
2-7
Years
|
||||||
Favorable
office and transmitter leases
|
3,655 | 4,296 |
2-60
Years
|
||||||
Brand
names
|
2,539 | - |
2.5
Years
|
||||||
Other intangibles
|
1,241 | 1,145 |
1-5
Years
|
||||||
89,614 | 85,199 | ||||||||
Less:
Accumulated amortization
|
(45,397 | ) | (39,781 | ) | |||||
Other intangible assets, net
|
$ | 44,217 | $ | 45,418 |
(In
thousands)
|
||||
2009 &
#160;
|
$ | 8,939 | ||
2010 &
#160;
|
$ | 7,241 | ||
2011 &
#160;
|
$ | 6,201 | ||
2012 &
#160;
|
$ | 5,918 | ||
2013 &
#160;
|
$ | 4,843 |
As of December 31,
|
||||||||
2008
|
2007
|
|||||||
(As
Adjusted – See Note 1)
|
||||||||
(In
thousands)
|
||||||||
Deferred
revenue
|
$ | 6,146 | $ | 3,345 | ||||
Deferred
barter revenue
|
1,107 | 1,639 | ||||||
Deferred
contract termination credits
|
1,263 | 2,060 | ||||||
Deferred
rent
|
470 | 231 | ||||||
Accrued
national representative fees
|
550 | 684 | ||||||
Accrued
miscellaneous taxes
|
346 | 201 | ||||||
Current
deferred tax liability
|
- | 168 | ||||||
Other
|
2,595 | 3,796 | ||||||
Other
current liabilities
|
$ | 12,477 | $ | 12,124 |
Swap Agreement
|
Notional Amount
|
Expiration
|
Fixed Rate
|
|||||
No. 1
|
$25.0
million
|
June 16,
2010
|
4.27 | % | ||||
No. 2
|
$25.0
million
|
June 16,
2012
|
4.47 | % |
As of December 31,
|
||||||||
2008
|
2007
|
|||||||
(In
thousands)
|
||||||||
87/8% Senior
Subordinated Notes
|
$ | 103,951 | $ | 300,000 | ||||
63/8% Senior
Subordinated Notes
|
200,000 | 200,000 | ||||||
Credit
facilities
|
371,201 | 314,500 | ||||||
Seller
financed acquisition loan
|
— | 1,004 | ||||||
Capital
lease obligation
|
210 | — | ||||||
Total
long-term debt
|
675,362 | 815,504 | ||||||
Less:
current portion
|
43,807 | 26,004 | ||||||
Long-term
debt, net of current portion
|
$ | 631,555 | $ | 789,500 |
Senior
Subordinated
Notes
|
Credit
and Other
Facilities
|
|||||||
(In
thousands)
|
||||||||
2009
|
$ | — | $ | 43,807 | ||||
2010
|
— | 48,442 | ||||||
2011
|
103,951 | 279,162 | ||||||
2012
|
— | — | ||||||
2013
|
200,000 | — | ||||||
Total
long-term debt
|
$ | 303,951 | $ | 371,411 |
For the Years Ended
December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(As
Adjusted – See Note 1)
|
||||||||||||
(In
thousands)
|
||||||||||||
Statutory
tax (@ 35% rate)
|
$ | (118,531 | ) | $ | (68,238 | ) | $ | 13,510 | ||||
Effect
of state taxes, net of federal
|
(8,651 | ) | (9,614 | ) | 1,116 | |||||||
Effect
of state rate and tax law changes
|
— | (959 | ) | 495 | ||||||||
Permanent
items, excluding impairment of long-lived assets, Internal Revenue Code
Section 162(m) and SFAS No. 123(R)
|
220 | (912 | ) | 536 | ||||||||
Effect
of equity adjustments including SFAS No. 123(R)
|
321 | 607 | 669 | |||||||||
Internal
Revenue Code Section 162(m)
|
3,684 | 58 | 442 | |||||||||
Valuation
allowance
|
66,141 | 132,386 | 1,396 | |||||||||
Effect
of permanent impairment of long-lived assets
|
10,429 | 643 | — | |||||||||
Other
|
1,187 | 112 | 96 | |||||||||
(Benefit
from) provision for income taxes
|
$ | (45,200 | ) | $ | 54,083 | $ | 18,260 |
|
For the Years Ended
December 31,
|
||||||||||||
2008
|
2007
|
2006
|
|||||||||||
(As
Adjusted – See Note 1)
|
|||||||||||||
(In
thousands)
|
|||||||||||||
Federal: | |||||||||||||
Current
|
$ | 4,186 | $ | 4,194 | $ | 4,373 | |||||||
Deferred
|
(42,822 | ) | 45,980 | 11,734 | |||||||||
State:
|
|||||||||||||
Current
|
301 | 787 | 454 | ||||||||||
Deferred
|
(6,865 | ) | 3,122 | 1,699 | |||||||||
(Benefit
from) provision for income taxes
|
$ | (45,200 | ) | $ | 54,083 | $ | 18,260 |
For the Years Ended
December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
(As
Adjusted – See Note 1)
|
||||||||||||
(In
thousands)
|
||||||||||||
Federal:
|
||||||||||||
Current
|
$ | — | $ | — | $ | — | ||||||
Deferred
|
1,095 | (68,172 | ) | 374 | ||||||||
State:
|
||||||||||||
Current
|
(1,077 | ) | 3,890 | (10,834 | ) | |||||||
Deferred
|
83 | (10,715 | ) | (533 | ) | |||||||
Provision
for (benefit from) income taxes
|
$ | 101 | $ | (74,997 | ) | $ | (10,993 | ) |
As
of December 31,
|
||||||||
2008
|
2007
|
|||||||
(In
thousands)
|
||||||||
Deferred
tax assets:
|
||||||||
Allowance
for doubtful accounts
|
$ | 1,478 | $ | 1,835 | ||||
Accruals
|
1,622 | 2,149 | ||||||
Other
|
— | 1 | ||||||
Total
current tax assets before valuation allowance
|
3,100 | 3,985 | ||||||
Valuation
allowance
|
(2,833 | ) | (3,709 | ) | ||||
Total
current tax assets, net
|
267 | 276 | ||||||
Intangible
assets
|
66,277 | 2,788 | ||||||
Depreciation
|
(201 | ) | 509 | |||||
Stock-based
compensation
|
1,983 | 2,312 | ||||||
Other
accruals
|
242 | 622 | ||||||
Net
operating loss carryforwards
|
150,299 | 136,780 | ||||||
Other
|
3,409 | 2,406 | ||||||
Total
noncurrent deferred tax assets before valuation allowance
|
222,009 | 145,417 | ||||||
Valuation
allowance
|
(202,923 | ) | (130,267 | ) | ||||
Net
noncurrent deferred tax assets
|
19,086 | 15,150 | ||||||
Total
deferred tax assets
|
$ | 19,353 | $ | 15,426 | ||||
Deferred
tax liabilities:
|
||||||||
Prepaid
expenses
|
(157 | ) | (118 | ) | ||||
Other
|
(2 | ) | (50 | ) | ||||
Total
current deferred tax liabilities
|
(159 | ) | (168 | ) | ||||
Intangible
assets
|
(91,724 | ) | (137,187 | ) | ||||
Depreciation
|
(1,122 | ) | (628 | ) | ||||
Interest
expense
|
— | (355 | ) | |||||
Partnership
interests
|
(12,247 | ) | (11,323 | ) | ||||
Other
|
(256 | ) | (468 | ) | ||||
Total
noncurrent deferred tax liabilities
|
(105,349 | ) | (149,961 | ) | ||||
Total
deferred tax liabilities
|
(105,508 | ) | (150,129 | ) | ||||
Net
deferred tax liabilities
|
$ | (86,155 | ) | $ | (134,703 | ) |
2008
|
2007
|
|||||||
(In
thousands)
|
||||||||
Balance
as of January 1
|
$ | 4,534 | $ | 4,932 | ||||
Additions
for tax position related to current year
|
134 | 71 | ||||||
Additions
for tax positions related to prior years
|
457 | 71 | ||||||
Settlements
|
- | (40 | ) | |||||
Reductions
for tax positions as a result of the lapse of applicable statutes of
limitations
|
(172 | ) | (500 | ) | ||||
Balance
as of December 31
|
$ | 4,953 | $ | 4,534 |
Years Ended December
31,
|
||||||||
2008
|
2007
|
2006
|
||||||
Average
risk-free interest rate
|
3.37
|
%
|
4.67
|
%
|
4.97
|
%
|
||
Expected
dividend yield
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
||
Expected
lives
|
6.5
years
|
7.4
years
|
7.7
years
|
|||||
Expected
volatility
|
49.7
|
%
|
39.6
|
%
|
40.0
|
%
|
Number
of Options
|
Weighted-Average
Exercise
Price
|
Weighted-Average
Remaining
Contractual
Term(In Years)
|
Aggregate
IntrinsicValue
|
|||||||||||||
Outstanding
at December 31, 2005
|
7,069,000 | $ | 14.55 | — | — | |||||||||||
Grants
|
62,000 | 8.36 | ||||||||||||||
Exercised
|
(6,900 | ) | 7.50 | |||||||||||||
Forfeited/cancelled/expired
|
(1,248,000 | ) | 14.97 | |||||||||||||
Outstanding
at December 31, 2006
|
5,876,100 | 14.49 | — | — | ||||||||||||
Grants
|
230,800 | 5.54 | ||||||||||||||
Exercised
|
— | — | ||||||||||||||
Forfeited/cancelled/expired
|
(1,722,900 | ) | 14.50 | |||||||||||||
Outstanding
at December 31, 2007
|
4,384,000 | 14.05 | — | — | ||||||||||||
Grants
|
1,913,000 | 1.41 | ||||||||||||||
Exercised
|
— | — | ||||||||||||||
Forfeited/cancelled/expired
|
(750,000 | ) | 14.32 | |||||||||||||
Outstanding
at December 31, 2008
|
5,547,000 | $ | 9.64 | 6.67 | — | |||||||||||
Vested
and expected to vest at December 31, 2008
|
5,226,000 | $ | 10.02 | 6.54 | — | |||||||||||
Unvested
at December 31, 2008
|
2,236,000 | $ | 2.46 | 9.15 | ||||||||||||
Exercisable
at December 31, 2008
|
3,311,000 | $ | 14.47 | 5.01 | — |
Shares
|
Average
Fair
Value at Grant Date
|
|||||||
Unvested
at December 31, 2005
|
33,000 | 19.71 | ||||||
Grants
|
— | — | ||||||
Vested
|
(16,500 | ) | 19.71 | |||||
Forfeited/cancelled/expired
|
— | — | ||||||
Unvested
at December 31, 2006
|
16,500 | 19.71 | ||||||
Grants
|
232,200 | 6.20 | ||||||
Vested
|
(16,700 | ) | 19.71 | |||||
Forfeited/cancelled/expired
|
— | — | ||||||
Unvested
at December 31, 2007
|
232,000 | $ | 6.20 | |||||
Grants
|
525,000 | 1.41 | ||||||
Vested
|
(84,000 | ) | 5.05 | |||||
Forfeited/cancelled/expired
|
(45,000 | ) | 7.33 | |||||
Unvested
at December 31, 2008
|
628,000 | $ | 2.14 |
Capital
Lease Payments
|
Operating
Lease
Payments
|
Other
Operating
Contracts
and
Agreements
|
||||||||||
Years
ending December 31:
|
||||||||||||
2009
|
$ | 214 | $ | 8,404 | $ | 48,874 | ||||||
2010
|
— | 7,217 | 23,483 | |||||||||
2011
|
— | 5,861 | 22,956 | |||||||||
2012
|
— | 4,306 | 23,092 | |||||||||
2013
|
— | 3,612 | 11,097 | |||||||||
Thereafter
|
— | 10,222 | 11,301 | |||||||||
Total
|
214 | $ | 39,622 | $ | 140,803 | |||||||
Less amount representing interest
|
4 | |||||||||||
Present
value of net minimum lease payments
|
210 | |||||||||||
Less
current maturities
|
(210 | ) | ||||||||||
Long-term
obligations, less interest
|
$ | — |
Quarters Ended
|
||||||||||||||||
March 31(a)
|
June 30
|
September 30 (a)
|
December 31(a)
|
|||||||||||||
(As
Adjusted – See Note 1)
|
||||||||||||||||
(In
thousands, except share data)
|
||||||||||||||||
2008:
|
||||||||||||||||
Net
revenue
|
$ | 72,498 | $ | 83,432 | $ | 86,156 | $ | 74,330 | ||||||||
Operating
income (loss)
|
18,587 | 11,828 | (315,636 | ) | (64,224 | ) | ||||||||||
Net
loss from continuing operations
|
(11,029 | ) | (13,010 | ) | (266,752 | ) | (6,643 | ) | ||||||||
Net
(loss) income from discontinued operations
|
(7,823 | ) | 1,334 | 639 | 339 | |||||||||||
Net
loss
|
(18,852 | ) | (11,676 | ) | (266,113 | ) | (6,304 | ) | ||||||||
Net
loss from continuing operations per share — basic and
diluted
|
(0.11 | ) | (0.13 | ) | (2.82 | ) | (0.08 | )* | ||||||||
Net
(loss) income from discontinued operations per share — basic and
diluted
|
(0.08 | ) | 0.01 | 0.01 | (0.00 | )* | ||||||||||
Net
loss per share — basic and diluted
|
(0.19 | ) | (0.12 | ) | (2.81 | ) | (0.07 | )* | ||||||||
Weighted
average shares outstanding — basic
|
98,728,411 | 98,403,298 | 94,537,081 | 85,093,359 | ||||||||||||
Weighted
average shares outstanding — diluted
|
98,728,411 | 98,403,298 | 94,537,081 | 85,093,359 |
(a)
The
net loss from continuing operations for the quarters ended September 30,
2008 and December 31, 2008 includes approximately $337.9 million and
$85.3 million of pre-tax impairment of long-lived assets, respectively.
The quarter ended March 31, 2008 included a pre-tax impairment for
long-lived assets of approximately $5.1 million for discontinued
operations.
*
Per share amounts may not add due to rounding.
|
|||||||||||||||||
Quarters Ended
|
|||||||||||||||||
March 31
|
June 30(a)
|
September 30
|
December 31(a)
|
||||||||||||||
(As
Adjusted – See Note 1)
|
|||||||||||||||||
(In
thousands, except share data)
|
|||||||||||||||||
2007:
|
|||||||||||||||||
Net
revenue
|
$ | 74,005 | $ | 82,584 | $ | 88,184 | $ | 74,779 | |||||||||
Operating
income (loss)
|
21,986 | 21,214 | 32,717 | (187,599 | ) | ||||||||||||
Net
(loss) income from continuing operations
|
(2,403 | ) | (275 | ) | 4,904 | (259,613 | ) | ||||||||||
Net
loss from discontinued operations
|
(579 | ) | (4,796 | ) | (214 | ) | (128,525 | ) | |||||||||
Net
(loss) income
|
(2,982 | ) | (5,071 | ) | 4,690 | (388,138 | ) | ||||||||||
Net
(loss) income from continuing operations per share — basic and
diluted
|
(0.02 | ) | 0.00 | 0.05 | (2.63 | ) | |||||||||||
Net
loss from discontinued operations per share — basic and
diluted
|
(0.01 | ) | (0.05 | ) | 0.00 | (1.30 | ) | ||||||||||
Net
(loss) income per share — basic and diluted
|
(0.03 | ) | (0.05 | ) | 0.05 | (3.93 | ) | ||||||||||
Weighted
average shares outstanding — basic
|
98,710,633 | 98,710,633 | 98,710,633 | 98,710,633 | |||||||||||||
Weighted
average shares outstanding — diluted
|
98,710,633 | 98,710,633 | 98,725,387 | 98,710,633 |
(a)
|
The
net (loss) income from continuing operations for the quarters ended June
30, 2007 and December 31, 2007 includes approximately $5.5 million
and $205.5 million of pre-tax impairment of long-lived assets,
respectively. Net loss from discontinued operations for the quarters ended
June 30, 2007 and December 31, 2007 includes approximately $10.4 million
and $198.6 million of pre-tax impairment of long-lived assets,
respectively. The quarter ended December 31, 2007 includes an approximate
$134.0 million charge for recording a valuation allowance against deferred
tax assets.
|
Selected
Statement of Operations Data
|
||||||||||||||||||||||||||
Three
Months Ended March 31, 2007
|
Three
Months Ended December 31, 2007
|
|||||||||||||||||||||||||
As
Previously
Reported*
|
Adjustments
|
As
Adjusted
|
As
Previously Reported*
|
Adjustments
|
As
Adjusted
|
|||||||||||||||||||||
Equity
in Loss of Affiliated Company
|
$
|
492
|
$
|
3,726
|
$
|
4,218
|
$
|
3,897
|
$
|
1,730
|
$
|
5,627
|
||||||||||||||
Income
(Loss) before benefit from income taxes, minority interest in income of
subsidiaries and discontinued operations
|
$
|
3,718
|
$
|
(3,726
|
)
|
$
|
(8
|
)
|
$
|
(209,206
|
)
|
$
|
(1,730
|
)
|
$
|
(210,936
|
)
|
|||||||||
Net
income (loss) from continuing operations
|
$
|
1,360
|
$
|
(3,726
|
)
|
$
|
(2,366
|
)
|
$
|
(257,883
|
)
|
$
|
(1,730
|
)
|
$
|
(259,613
|
)
|
|||||||||
Net
income (loss)
|
$
|
744
|
$
|
(3,726
|
)
|
$
|
(2,982
|
)
|
$
|
(386,408
|
)
|
$
|
(1,730
|
)
|
$
|
(388,138
|
)
|
|||||||||
Basic
and Diluted Net Income (loss) from Continuing Operations per Common
Share
|
$
|
0.01
|
**
|
$
|
(0.04
|
)
|
$
|
(0.03
|
)**
|
$
|
(2.61
|
)
|
$
|
(0.02
|
)
|
$
|
(2.63
|
)
|
||||||||
Basic
and Diluted Net Income (Loss) from Discontinued Operations per Common
Share
|
(0.01
|
)**
|
0.00
|
(0.01
|
)**
|
(1.30
|
)
|
0.00
|
(1.30
|
)
|
||||||||||||||||
Basic
and Diluted Net Income (Loss) per Common Share
|
$
|
0.01
|
**
|
$
|
(0.04
|
)
|
$
|
(0.03
|
)**
|
$
|
(3.91
|
)
|
$
|
(0.02
|
)
|
$
|
(3.93
|
)
|
2008
|
2007
|
2006
|
||||||||||
(In
thousands)
|
||||||||||||
Net
Revenue:
|
||||||||||||
Radio
Broadcasting
|
$
|
304,976
|
$
|
319,647
|
$
|
323,043
|
||||||
Internet/Publishing
|
15,298
|
3,153
|
-
|
|||||||||
Corporate/Eliminations/Other
|
(3,858
|
)
|
(3,248
|
)
|
(1,418
|
)
|
||||||
Consolidated
|
$
|
316,416
|
$
|
319,552
|
$
|
321,625
|
||||||
Operating
Expenses (including stock-based compensation):
|
||||||||||||
Radio
Broadcasting
|
$
|
175,706
|
$
|
181,155
|
$
|
176,657
|
||||||
Internet/Publishing
|
25,120
|
8,351
|
-
|
|||||||||
Corporate/Eliminations/Other
|
22,689
|
15,909
|
18,416
|
|||||||||
Consolidated
|
$
|
223,515
|
$
|
205,415
|
$
|
195,073
|
||||||
Depreciation
and Amortization:
|
||||||||||||
Radio
Broadcasting
|
$
|
13,483
|
$
|
13,551
|
$
|
12,948
|
||||||
Internet/Publishing
|
4,261
|
87
|
-
|
|||||||||
Corporate/Eliminations/Other
|
1,380
|
1,130
|
942
|
|||||||||
Consolidated
|
$
|
19,124
|
$
|
14,768
|
$
|
13,890
|
||||||
Impairment
of Long-Lived Assets:
|
||||||||||||
Radio
Broadcasting
|
$
|
423,220
|
$
|
211,051
|
$
|
-
|
||||||
Internet/Publishing
|
-
|
-
|
-
|
|||||||||
Corporate/Eliminations/Other
|
-
|
-
|
-
|
|||||||||
Consolidated
|
$
|
423,220
|
$
|
211,051
|
$
|
-
|
||||||
Operating
(loss) income:
|
||||||||||||
Radio
Broadcasting
|
$
|
(307,433
|
)
|
$
|
(86,110
|
)
|
$
|
133,438
|
||||
Internet/Publishing
|
(14,083
|
)
|
(5,285
|
)
|
-
|
|||||||
Corporate/Eliminations/Other
|
(27,927
|
)
|
(20,287
|
)
|
(20,776
|
)
|
||||||
Consolidated
|
$
|
(349,443
|
)
|
$
|
(111,682
|
)
|
$
|
112,662
|
||||
Total
Assets:
|
||||||||||||
Radio
Broadcasting
|
$
|
1,169,925
|
$
|
1,667,941
|
$
|
2,099,089
|
||||||
Internet/Publishing
|
43,001
|
2,402
|
1,809
|
|||||||||
Corporate/Eliminations/Other
|
(87,449
|
)
|
(21,989
|
)
|
94,312
|
|||||||
Consolidated
|
$
|
1,125,477
|
$
|
1,648,354
|
$
|
2,195,210
|
RADIO
ONE, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATING
BALANCE SHEETS
|
||||||||||||||||
As
of December 31, 2008
|
||||||||||||||||
Combined
|
||||||||||||||||
Guarantor
|
Radio
One,
|
|||||||||||||||
Subsidiaries
|
Inc.
|
Eliminations
|
Consolidated
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
ASSETS
|
||||||||||||||||
CURRENT
ASSETS:
|
||||||||||||||||
Cash
and cash equivalents
|
$
|
2,601
|
$
|
19,688
|
$
|
-
|
$
|
22,289
|
||||||||
Trade
accounts receivable, net of allowance for doubtful
accounts
|
25,930
|
24,007
|
-
|
49,937
|
||||||||||||
Prepaid
expenses and other current assets
|
1,941
|
3,619
|
-
|
5,560
|
||||||||||||
Deferred tax
assets
|
-
|
108
|
-
|
108
|
||||||||||||
Current
assets from discontinued operations
|
246
|
57
|
-
|
303
|
||||||||||||
Total
current assets
|
30,718
|
47,479
|
-
|
78,197
|
||||||||||||
PROPERTY
AND EQUIPMENT, net
|
28,161
|
20,441
|
-
|
48,602
|
||||||||||||
INTANGIBLE
ASSETS, net
|
626,725
|
318,244
|
-
|
944,969
|
||||||||||||
INVESTMENT
IN SUBSIDIARIES
|
-
|
669,308
|
(669,308
|
)
|
-
|
|||||||||||
INVESTMENT
IN AFFILIATED COMPANY
|
-
|
47,852
|
-
|
47,852
|
||||||||||||
OTHER
ASSETS
|
413
|
5,384
|
-
|
5,797
|
||||||||||||
NON-CURRENT
ASSESTS FROM DISCONTINUED OPERATIONS
|
60
|
-
|
-
|
60
|
||||||||||||
Total
assets
|
$
|
686,077
|
$
|
1,108,708
|
$
|
(669,308
|
)
|
$
|
1,125,477
|
|||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||
CURRENT
LIABILITIES:
|
||||||||||||||||
Accounts
payable
|
$
|
1,882
|
$
|
1,809
|
$
|
-
|
$
|
3,691
|
||||||||
Accrued
interest
|
-
|
10,082
|
-
|
10,082
|
||||||||||||
Accrued
compensation and related benefits
|
3,042
|
7,492
|
-
|
10,534
|
||||||||||||
Income
taxes payable
|
-
|
30
|
-
|
30
|
||||||||||||
Other
current liabilities
|
5,364
|
7,113
|
-
|
12,477
|
||||||||||||
Current
portion of long-term debt
|
210
|
43,597
|
-
|
43,807
|
||||||||||||
Current
liabilities from discontinued operations
|
30
|
552
|
-
|
582
|
||||||||||||
Total
current liabilities
|
10,528
|
70,675
|
-
|
81,203
|
||||||||||||
LONG-TERM
DEBT, net of current portion
|
-
|
631,555
|
-
|
631,555
|
||||||||||||
OTHER
LONG-TERM LIABILITIES
|
-
|
11,008
|
-
|
11,008
|
||||||||||||
DEFERRED TAX
LIABILITIES
|
6,241
|
79,995
|
-
|
86,236
|
||||||||||||
Total
liabilities
|
16,769
|
793,233
|
-
|
810,002
|
||||||||||||
MINORITY
INTEREST IN SUBSIDIARY
|
-
|
1,981
|
-
|
1,981
|
||||||||||||
STOCKHOLDERS’
EQUITY:
|
||||||||||||||||
Common
stock
|
-
|
79
|
-
|
79
|
||||||||||||
Accumulated
comprehensive income adjustments
|
-
|
(2,981
|
)
|
-
|
(2,981
|
)
|
||||||||||
Additional
paid-in capital
|
301,002
|
1,033,921
|
(301,002
|
)
|
1,033,921
|
|||||||||||
Retained
earnings (accumulated deficit)
|
368,306
|
(717,525
|
)
|
(368,306
|
)
|
(717,525
|
)
|
|||||||||
Total
stockholders’ equity
|
669,308
|
313,494
|
(669,308
|
)
|
313,494
|
|||||||||||
Total
liabilities and stockholders’ equity
|
$
|
686,077
|
$
|
1,108,708
|
$
|
(669,308
|
)
|
$
|
1,125,477
|
RADIO
ONE, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATING
BALANCE SHEETS
|
||||||||||||||||
As
of December 31, 2007
|
||||||||||||||||
Combined
|
||||||||||||||||
Guarantor
|
||||||||||||||||
Subsidiaries
|
Radio
One, Inc.
|
Eliminations
|
Consolidated
|
|||||||||||||
(As
Adjusted - See Note 1)
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||
ASSETS
|
||||||||||||||||
CURRENT
ASSETS:
|
||||||||||||||||
Cash
and cash equivalents
|
$
|
822
|
$
|
23,425
|
$
|
-
|
$
|
24,247
|
||||||||
Trade
accounts receivable, net of allowance for doubtful
accounts
|
25,297
|
25,128
|
-
|
50,425
|
||||||||||||
Prepaid
expenses and other current assets
|
2,340
|
3,778
|
-
|
6,118
|
||||||||||||
Deferred tax
assets
|
-
|
158
|
-
|
158
|
||||||||||||
Current
assets from discontinued operations
|
622
|
2,627
|
-
|
3,249
|
||||||||||||
Total
current assets
|
29,081
|
55,116
|
-
|
84,197
|
||||||||||||
PROPERTY
AND EQUIPMENT, net
|
25,203
|
19,537
|
-
|
44,740
|
||||||||||||
INTANGIBLE
ASSETS, net
|
926,711
|
383,610
|
-
|
1,310,321
|
||||||||||||
INVESTMENT
IN SUBSIDIARIES
|
-
|
934,990
|
(934,990
|
)
|
-
|
|||||||||||
INVESTMENT
IN AFFILIATED COMPANY
|
-
|
48,399
|
-
|
48,399
|
||||||||||||
OTHER
ASSETS
|
632
|
7,941
|
-
|
8,573
|
||||||||||||
NON-CURRENT
ASSESTS FROM DISCONTINUED OPERATIONS
|
64
|
152,060
|
-
|
152,124
|
||||||||||||
Total
assets
|
$
|
981,691
|
$
|
1,601,653
|
$
|
(934,990
|
)
|
$
|
1,648,354
|
|||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||
CURRENT
LIABILITIES:
|
||||||||||||||||
Accounts
payable
|
$
|
1,026
|
$
|
3,932
|
$
|
-
|
$
|
4,958
|
||||||||
Accrued
interest
|
-
|
19,004
|
-
|
19,004
|
||||||||||||
Accrued
compensation and related benefits
|
3,007
|
13,312
|
-
|
16,319
|
||||||||||||
Income
taxes payable
|
-
|
4,463
|
-
|
4,463
|
||||||||||||
Other
current liabilities
|
3,446
|
8,678
|
-
|
12,124
|
||||||||||||
Current
portion of long-term debt
|
-
|
26,004
|
-
|
26,004
|
||||||||||||
Current
liabilities from discontinued operations
|
344
|
2,360
|
-
|
2,704
|
||||||||||||
Total
current liabilities
|
7,823
|
77,753
|
-
|
85,576
|
||||||||||||
LONG-TERM
DEBT, net of current portion
|
-
|
789,500
|
-
|
789,500
|
||||||||||||
OTHER
LONG-TERM LIABILITIES
|
1,994
|
3,233
|
-
|
5,227
|
||||||||||||
DEFERRED TAX
LIABILITIES
|
36,884
|
98,077
|
-
|
134,961
|
||||||||||||
NON-CURRENT
LIABILITIES FROM DISCONTINUED OPERATIONS
|
-
|
483
|
-
|
483
|
||||||||||||
Total
liabilities
|
46,701
|
969,046
|
-
|
1,015,747
|
||||||||||||
MINORITY
INTEREST IN SUBSIDIARY
|
-
|
3,889
|
-
|
3,889
|
||||||||||||
STOCKHOLDERS’
EQUITY:
|
||||||||||||||||
Common
stock
|
-
|
99
|
-
|
99
|
||||||||||||
Accumulated
comprehensive income adjustments
|
-
|
644
|
-
|
644
|
||||||||||||
Stock
subscriptions receivable
|
-
|
(1,717
|
)
|
-
|
(1,717
|
)
|
||||||||||
Additional
paid-in capital
|
274,895
|
1,044,273
|
(274,895
|
)
|
1,044,273
|
|||||||||||
Retained
earnings (accumulated deficit)
|
660,095
|
(414,581
|
)
|
(660,095
|
)
|
(414,581
|
)
|
|||||||||
Total
stockholders’ equity
|
934,990
|
628,718
|
(934,990
|
)
|
628,718
|
|||||||||||
Total
liabilities and stockholders’ equity
|
$
|
981,691
|
$
|
1,601,653
|
$
|
(934,990
|
)
|
$
|
1,648,354
|
RADIO
ONE, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATING
STATEMENTS OF OPERATIONS
|
||||||||||||||||
For
the Year Ended December 31, 2008
|
||||||||||||||||
Combined
|
||||||||||||||||
Guarantor
|
Radio
|
|||||||||||||||
Subsidiaries
|
One,
Inc.
|
Eliminations
|
Consolidated
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
NET
REVENUE
|
$
|
145,906
|
$
|
170,470
|
$
|
40
|
$
|
316,416
|
||||||||
OPERATING
EXPENSES:
|
||||||||||||||||
Programming
and technical, including stock-based
compensation
|
38,514
|
43,607
|
-
|
82,121
|
||||||||||||
Selling,
general and administrative, including stock-based
compensation
|
60,070
|
44,967
|
-
|
105,037
|
||||||||||||
Corporate
selling, general and administrative, including
stock-based
compensation
|
-
|
36,357
|
-
|
36,357
|
||||||||||||
Depreciation
and amortization
|
10,031
|
9,093
|
-
|
19,124
|
||||||||||||
Impairment
of long-lived assets
|
328,971
|
94,249
|
-
|
423,220
|
||||||||||||
Total
operating expenses
|
437,586
|
228,273
|
-
|
665,859
|
||||||||||||
Operating
(loss) income
|
(291,680
|
)
|
(57,803
|
)
|
40
|
(349,443
|
)
|
|||||||||
INTEREST
INCOME
|
4
|
487
|
-
|
491
|
||||||||||||
INTEREST
EXPENSE
|
24
|
59,665
|
-
|
59,689
|
||||||||||||
EQUITY
IN LOSS OF AFFILIATED COMPANY
|
-
|
3,652
|
-
|
3,652
|
||||||||||||
GAIN
ON RETIREMENT OF DEBT
|
-
|
74,017
|
-
|
74,017
|
||||||||||||
OTHER
INCOME (EXPENSE)
|
46
|
(407
|
)
|
-
|
(361
|
)
|
||||||||||
Loss before
(benefit from) provision for income taxes and minority interest in income
of subsidiary and income (loss) from discontinued operations, net of
tax
|
(291,654
|
)
|
(47,023
|
)
|
40
|
(338,637
|
)
|
|||||||||
(BENEFIT
FROM) PROVISION FOR INCOME TAXES
|
(56,025)
|
10,825
|
-
|
(45,200
|
)
|
|||||||||||
MINORITY
INTEREST IN INCOME OF SUBSIDIARIES
|
-
|
3,997
|
-
|
3,997
|
||||||||||||
Net
loss before equity in income of subsidiaries and income (loss) from
discontinued operations, net of tax
|
(235,629
|
)
|
(61,845
|
)
|
40
|
(297,434
|
)
|
|||||||||
EQUITY
IN LOSS OF SUBSIDIARIES
|
-
|
(235,629
|
)
|
235,629
|
-
|
|||||||||||
Loss
from continuing operations
|
(235,629
|
)
|
(297,474
|
)
|
235,669
|
(297,434
|
)
|
|||||||||
INCOME
(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
|
1,159
|
(6,629
|
)
|
(40
|
)
|
(5,510
|
)
|
|||||||||
NET
LOSS
|
$
|
(234,470
|
)
|
$
|
(304,103
|
)
|
$
|
235,629
|
$
|
(302,944
|
)
|
RADIO
ONE, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATING
STATEMENTS OF OPERATIONS
|
||||||||||||||||
For
the Year Ended December 31, 2007
|
||||||||||||||||
Combined
|
||||||||||||||||
Guarantor
|
Radio
|
|||||||||||||||
Subsidiaries
|
One,
Inc.
|
Eliminations
|
Consolidated
|
|||||||||||||
(As
Adjusted - See Note 1)
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||
NET
REVENUE
|
$
|
144,036
|
$
|
175,413
|
$
|
103
|
$
|
319,552
|
||||||||
OPERATING
EXPENSES:
|
||||||||||||||||
Programming
and technical, including stock-based compensation
|
30,840
|
43,106
|
107
|
74,053
|
||||||||||||
Selling,
general and administrative, including stock-based
Compensation
|
54,991
|
47,975
|
-
|
102,966
|
||||||||||||
Corporate
selling, general and administrative, including stock-
based
compensation
|
-
|
28,396
|
-
|
28,396
|
||||||||||||
Depreciation
and amortization
|
5,969
|
8,799
|
-
|
14,768
|
||||||||||||
Impairment
of long-lived assets
|
206,828
|
4,223
|
-
|
211,051
|
||||||||||||
Total
operating expenses
|
298,628
|
132,499
|
107
|
431,234
|
||||||||||||
Operating
(loss) income
|
(154,592)
|
42,914
|
(4
|
)
|
(111,682
|
)
|
||||||||||
INTEREST
INCOME
|
-
|
1,242
|
-
|
1,242
|
||||||||||||
INTEREST
EXPENSE
|
1
|
72,769
|
-
|
72,770
|
||||||||||||
EQUITY
IN LOSS OF AFFILIATED COMPANY
|
-
|
15,836
|
-
|
15,836
|
||||||||||||
OTHER
EXPENSE, NET
|
-
|
347
|
-
|
347
|
||||||||||||
Loss
before provision for income taxes and minority interest in income of
subsidiary and loss from discontinued operations, net of
tax
|
(154,593
|
)
|
(44,796
|
)
|
(4
|
)
|
(199,393
|
)
|
||||||||
PROVISION
FOR INCOME TAXES
|
41,932
|
12,151
|
-
|
54,083
|
||||||||||||
MINORITY
INTEREST IN INCOME OF SUBSIDIARIES
|
-
|
3,910
|
-
|
3,910
|
||||||||||||
Net
loss before equity in income of subsidiaries and loss from discontinued
operations, net of tax
|
(196,525
|
)
|
(60,857
|
)
|
(4
|
)
|
(257,386
|
)
|
||||||||
EQUITY
IN LOSS OF SUBSIDIARIES
|
-
|
(196,525
|
)
|
196,525
|
-
|
|||||||||||
Net loss
from continuing operations
|
(196,525
|
)
|
(257,382
|
)
|
196,521
|
(257,386
|
)
|
|||||||||
LOSS
FROM DISCONTINUED OPERATIONS, NET OF TAX
|
(6,471
|
)
|
(127,647
|
)
|
4
|
(134,114
|
)
|
|||||||||
NET
LOSS
|
$
|
(202,996
|
)
|
$
|
(385,029
|
)
|
$
|
196,525
|
$
|
(391,500
|
)
|
|||||
RADIO
ONE, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATING
STATEMENTS OF OPERATIONS
|
||||||||||||||||
For
the Year Ended December 31, 2006
|
||||||||||||||||
Combined
|
||||||||||||||||
Guarantor
|
Radio
|
|||||||||||||||
Subsidiaries
|
One,
Inc.
|
Eliminations
|
Consolidated
|
|||||||||||||
(As
Adjusted - See Note 1)
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||
NET
REVENUE
|
$
|
140,400
|
$
|
181,114
|
$
|
111
|
$
|
321,625
|
||||||||
OPERATING
EXPENSES:
|
||||||||||||||||
Programming
and technical, including stock-based
compensation
|
25,261
|
43,348
|
209
|
68,818
|
||||||||||||
Selling,
general and administrative, including stock-
based
compensation
|
49,611
|
48,405
|
-
|
98,016
|
||||||||||||
Corporate
selling, general and administrative,
including
stock-based compensation
|
-
|
28,239
|
-
|
28,239
|
||||||||||||
Depreciation
and amortization
|
5,720
|
8,170
|
-
|
13,890
|
||||||||||||
Total
operating expenses
|
80,592
|
128,162
|
209
|
208,963
|
||||||||||||
Operating income
(loss)
|
59,808
|
52,952
|
(98
|
)
|
112,662
|
|||||||||||
INTEREST
INCOME
|
7
|
1,386
|
-
|
1,393
|
||||||||||||
INTEREST
EXPENSE
|
2
|
72,930
|
-
|
72,932
|
||||||||||||
EQUITY
IN LOSS OF AFFILIATED COMPANY
|
-
|
2,341
|
-
|
2,341
|
||||||||||||
OTHER
EXPENSE
|
-
|
283
|
-
|
283
|
||||||||||||
Income
(loss) before provision for (benefit from) income taxes and minority
interest in income of subsidiary and income (loss) from discontinued
operations, net of tax
|
59,813
|
(21,216
|
)
|
(98
|
)
|
38,499
|
||||||||||
PROVISION
FOR (BENEFIT FROM) INCOME TAXES
|
23,821
|
(5,561
|
)
|
-
|
18,260
|
|||||||||||
MINORITY
INTEREST IN INCOME OF SUBSIDIARIES
|
-
|
3,004
|
-
|
3,004
|
||||||||||||
Net
income (loss) before equity in income of subsidiaries and income (loss)
from discontinued operations, net of tax
|
35,992
|
(18,659
|
)
|
(98
|
)
|
17,235
|
||||||||||
EQUITY
IN INCOME (LOSS) OF SUBSIDIARIES
|
-
|
35,992
|
(35,992
|
)
|
-
|
|||||||||||
Net
income from continuing operations
|
35,992
|
17,333
|
(36,090
|
)
|
17,235
|
|||||||||||
INCOME
(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
|
4,216
|
(28,279
|
)
|
98
|
(23,965
|
)
|
||||||||||
NET
INCOME (LOSS)
|
$
|
40,208
|
$
|
(10,946
|
)
|
$
|
(35,992
|
)
|
$
|
(6,730
|
)
|
RADIO
ONE, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATING
STATEMENT OF CASH FLOWS
|
||||||||||||||||
For
the Year Ended December 31, 2008
|
||||||||||||||||
Combined
|
||||||||||||||||
Guarantor
|
Radio
|
|||||||||||||||
Subsidiaries
|
One,
Inc.
|
Eliminations
|
Consolidated
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net (loss) income
|
$
|
(234,470
|
)
|
$
|
(304,103
|
) |
$
|
235,629
|
|
$
|
(302,944
|
)
|
||||
Adjust for net income (loss) from discontinued
operations
|
(1,159
|
) |
6,629
|
|
40
|
|
5,510
|
|
||||||||
Net (loss) income from continuing operations
|
(235,629
|
)
|
(297,474
|
) |
235,669
|
|
(297,434
|
)
|
||||||||
Adjustments to reconcile (loss) income to net cash from operating
activities:
|
||||||||||||||||
Depreciation and amortization
|
10,031
|
9,093
|
-
|
19,124
|
||||||||||||
Amortization of debt financing costs
|
-
|
2,591
|
-
|
2,591
|
||||||||||||
Deferred income taxes
|
-
|
(49,687
|
)
|
-
|
(49,687
|
)
|
||||||||||
Impairment of long-lived assets
|
328,972
|
94,248
|
-
|
423,220
|
||||||||||||
Equity in net losses of affiliated company
|
-
|
3,652
|
-
|
3,652
|
||||||||||||
Minority interest in income of subsidiaries
|
-
|
3,997
|
-
|
3,997
|
||||||||||||
Stock-based compensation and other non-cash compensation
|
389
|
1,343
|
-
|
1,732
|
||||||||||||
Gain on retirement of debt
|
-
|
(74,017
|
) |
-
|
(74,017
|
) | ||||||||||
Amortization of contract inducement and termination fee
|
(896
|
)
|
(999
|
)
|
-
|
(1,895
|
)
|
|||||||||
Change in interest due on stock subscription receivable
|
-
|
(20
|
)
|
-
|
(20
|
)
|
||||||||||
Effect
of change in operating assets and liabilities, net of assets
acquired:
|
||||||||||||||||
Trade accounts receivable, net
|
(633
|
)
|
1,121
|
-
|
488
|
|||||||||||
Prepaid expenses and other current assets
|
400
|
(373
|
)
|
-
|
27
|
|||||||||||
Other assets
|
220
|
(801
|
)
|
-
|
(581
|
)
|
||||||||||
Accounts payable
|
856
|
(1,914
|
)
|
-
|
(1,058
|
)
|
||||||||||
Due to corporate/from subsidiaries | (50,128 | ) | 50,128 | - | - | |||||||||||
Accrued interest
|
-
|
(8,921
|
)
|
-
|
(8,921
|
)
|
||||||||||
Accrued compensation and related benefits
|
35
|
(6,029
|
)
|
-
|
(5,994
|
)
|
||||||||||
Income taxes payable
|
-
|
(4,433
|
)
|
-
|
(4,433
|
)
|
||||||||||
Other liabilities
|
(10,927
|
)
|
16,632
|
-
|
5,705
|
|||||||||||
Net cash flows used in operating activities from discontinued
operations
|
(351
|
)
|
(2,313
|
)
|
-
|
(2,664
|
)
|
|||||||||
Net cash flows from (used in) operating activities
|
42,339
|
(264,176
|
) |
235,669
|
|
13,832
|
||||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Purchase of property and equipment
|
(5,058
|
)
|
(7,539
|
)
|
-
|
(12,597
|
)
|
|||||||||
Cash paid for acquisitions
|
(34,918
|
)
|
(35,537
|
)
|
-
|
(70,455
|
)
|
|||||||||
Investment in subsidiaries
|
-
|
235,669
|
|
(235,669
|
) |
-
|
||||||||||
Proceeds from sale of assets
|
-
|
150,224
|
-
|
150,224
|
||||||||||||
Purchase of intangible assets
|
(584
|
)
|
(342
|
)
|
-
|
(926
|
)
|
|||||||||
Deposits and payments for station purchases and other
assets
|
-
|
(215
|
) |
-
|
(215
|
) | ||||||||||
Net cash flows used in investing activities from discontinued
operations
|
-
|
-
|
-
|
-
|
||||||||||||
Net cash flows (used in) from investing activities
|
(40,560
|
)
|
342,260
|
|
(235,669
|
) |
66,031
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Repayment
of Senior Subordinated Notes
|
-
|
(120,787
|
)
|
-
|
(120,787
|
)
|
||||||||||
Repayment of other debt
|
-
|
(1,004
|
)
|
-
|
(1,004
|
)
|
||||||||||
Proceeds from credit facility
|
-
|
227,000
|
-
|
227,000
|
||||||||||||
Repurchase of common stock
|
-
|
(12,104
|
)
|
-
|
(12,104
|
)
|
||||||||||
Payment of credit facility
|
-
|
(170,299
|
)
|
-
|
(170,299
|
)
|
||||||||||
Payment of stock subscriptions receivable
|
-
|
1,737
|
-
|
1,737
|
||||||||||||
Payment to minority interest shareholders
|
-
|
(6,364
|
)
|
-
|
(6,364
|
)
|
||||||||||
Net cash flows used in financing activities
|
-
|
(81,821
|
)
|
-
|
(81,821
|
)
|
||||||||||
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
1,779
|
|
(3,737
|
) |
-
|
(1,958
|
)
|
|||||||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
822
|
23,425
|
|
-
|
24,247
|
|||||||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$
|
2,601
|
$
|
19,688
|
|
$
|
-
|
$
|
22,289
|
RADIO
ONE, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATING
STATEMENT OF CASH FLOWS
|
||||||||||||||||
For
the Year Ended December 31, 2007
|
||||||||||||||||
Combined
|
||||||||||||||||
Guarantor
|
Radio
|
|||||||||||||||
Subsidiaries
|
One,
Inc.
|
Eliminations
|
Consolidated
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net (loss)
|
$
|
(202,996
|
)
|
$
|
(385,029
|
)
|
$
|
196,525
|
$
|
(391,500
|
)
|
|||||
Adjust for net loss from discontinued operations
|
6,471
|
127,647
|
(4
|
) |
134,114
|
|||||||||||
Net (loss) from continuing operations
|
(196,525
|
)
|
(257,382
|
)
|
196,521
|
(257,386
|
)
|
|||||||||
Adjustments to reconcile loss to net cash from operating
activities:
|
||||||||||||||||
Depreciation and amortization
|
5,969
|
8,799
|
-
|
14,768
|
||||||||||||
Amortization of debt financing costs
|
-
|
2,241
|
-
|
2,241
|
||||||||||||
Deferred income taxes
|
-
|
(28,013
|
)
|
-
|
(28,013
|
)
|
||||||||||
Impairment of long-lived assets
|
206,828
|
4,223
|
-
|
211,051
|
||||||||||||
Equity in net losses of affiliated company
|
-
|
15,836
|
-
|
15,836
|
||||||||||||
Minority interest in income of subsidiaries
|
-
|
3,910
|
-
|
3,910
|
||||||||||||
Stock-based compensation and other non-cash compensation
|
1,246
|
1,791
|
-
|
3,037
|
||||||||||||
Amortization of contract inducement and termination fee
|
(896
|
)
|
(913
|
)
|
-
|
(1,809
|
)
|
|||||||||
Change in interest due on stock subscription receivable
|
-
|
(75
|
)
|
-
|
(75
|
)
|
||||||||||
Effect
of change in operating assets and liabilities, net of assets
acquired:
|
||||||||||||||||
Trade accounts receivable, net
|
1,211
|
2,558
|
-
|
3,769
|
||||||||||||
Prepaid expenses and other current assets
|
(441
|
)
|
(744
|
)
|
-
|
(1,185
|
)
|
|||||||||
Income tax receivable
|
-
|
1,296
|
-
|
1,296
|
||||||||||||
Other assets
|
38
|
(399
|
)
|
-
|
(361
|
)
|
||||||||||
Due to corporate/from subsidiaries
|
(18,564
|
) |
18,564
|
-
|
-
|
|||||||||||
Accounts payable
|
(2,179
|
)
|
(2,620
|
)
|
-
|
(4,799
|
)
|
|||||||||
Accrued interest
|
-
|
(270
|
)
|
-
|
(270
|
)
|
||||||||||
Accrued compensation and related benefits
|
361
|
(1,453
|
)
|
-
|
(1,092
|
)
|
||||||||||
Income taxes payable
|
-
|
1,997
|
-
|
1,997
|
||||||||||||
Other liabilities
|
1,288
|
1,221
|
-
|
2,509
|
||||||||||||
Net cash flows from (used in) operating activities from discontinued
operations
|
6,168
|
72,418
|
4
|
|
78,590
|
|||||||||||
Net cash flows from (used in) operating activities
|
4,504
|
(157,015
|
)
|
196,525
|
44,014
|
|||||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Purchase of property and equipment
|
(4,552
|
)
|
(5,651
|
)
|
-
|
(10,203
|
)
|
|||||||||
Equity investments
|
-
|
(12,590
|
)
|
-
|
(12,590
|
)
|
||||||||||
Investment in subsidiaries
|
-
|
196,525
|
|
(196,525
|
) |
-
|
||||||||||
Proceeds from sale of assets
|
-
|
108,100
|
-
|
108,100
|
||||||||||||
Deposits and payments for station purchases and other
assets
|
-
|
(5,904
|
)
|
-
|
(5,904
|
)
|
||||||||||
Net cash flows used in investing activities from discontinued
operations
|
-
|
(935
|
)
|
-
|
(935
|
)
|
||||||||||
Net cash flows used in investing activities
|
(4,552
|
)
|
279,545
|
|
(196,525
|
) |
78,468
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Repayment
of debt
|
(14
|
)
|
(124,683
|
)
|
-
|
(124,697
|
)
|
|||||||||
Payment of bank financing costs
|
-
|
(3,004
|
)
|
-
|
(3,004
|
)
|
||||||||||
Payment to minority interest shareholders
|
-
|
(2,940
|
)
|
-
|
(2,940
|
)
|
||||||||||
Net cash flows used in financing activities
|
(14
|
)
|
(130,627
|
)
|
-
|
(130,641
|
)
|
|||||||||
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
(62
|
) |
(8,097
|
)
|
-
|
(8,159
|
)
|
|||||||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
884
|
31,522
|
-
|
32,406
|
||||||||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$
|
822
|
$
|
23,425
|
|
$
|
-
|
$
|
24,247
|
RADIO
ONE, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATING
STATEMENT OF CASH FLOWS
|
||||||||||||||||
For
the Year Ended December 31, 2006
|
||||||||||||||||
Combined
|
||||||||||||||||
Guarantor
|
Radio
|
|||||||||||||||
Subsidiaries
|
One,
Inc.
|
Eliminations
|
Consolidated
|
|||||||||||||
(As
Adjusted - See Note 1)
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net income (loss)
|
$
|
40,208
|
$
|
(10,946
|
)
|
$
|
(35,992
|
)
|
$
|
(6,730
|
)
|
|||||
Adjust for net loss (income) from discontinued operations
|
(4,216
|
) |
28,279
|
(98
|
) |
23,965
|
||||||||||
Net income (loss) from continuing operations
|
35,992
|
17,333
|
(36,090
|
)
|
17,235
|
|||||||||||
Adjustments
to reconcile loss to net cash from operating activities:
|
||||||||||||||||
Depreciation and amortization
|
5,720
|
8,170
|
-
|
13,890
|
||||||||||||
Amortization of debt financing costs
|
-
|
2,097
|
-
|
2,097
|
||||||||||||
Amortization of production content
|
-
|
2,277
|
-
|
2,277
|
||||||||||||
Deferred income taxes
|
-
|
2,066
|
-
|
2,066
|
||||||||||||
Loss on write-down of investment
|
-
|
270
|
-
|
270
|
||||||||||||
Equity in net losses of affiliated company
|
-
|
2,341
|
-
|
2,341
|
||||||||||||
Minority interest in income of subsidiaries
|
-
|
3,004
|
-
|
3,004
|
||||||||||||
Stock-based compensation and other non-cash compensation
|
1,717
|
4,264
|
-
|
5,981
|
||||||||||||
Amortization of contract inducement and termination fee
|
(975
|
)
|
(1,090
|
)
|
-
|
(2,065
|
)
|
|||||||||
Change in interest due on stock subscription receivable
|
-
|
(76
|
)
|
-
|
(76
|
)
|
||||||||||
Effect
of change in operating assets and liabilities, net of assets
acquired:
|
||||||||||||||||
Trade accounts receivable, net
|
(2,378
|
)
|
(3,032
|
)
|
-
|
(5,410
|
)
|
|||||||||
Prepaid expenses and other current assets
|
119
|
2,277
|
-
|
2,396
|
||||||||||||
Income tax receivable
|
-
|
2,639
|
-
|
2,639
|
||||||||||||
Other assets
|
-
|
1,000
|
-
|
1,000
|
||||||||||||
Due to corporate/from subsidiaries
|
(62,497
|
)
|
62,497
|
-
|
-
|
|||||||||||
Accounts payable
|
1,536
|
1,134
|
-
|
2,670
|
||||||||||||
Accrued interest
|
-
|
(35
|
)
|
-
|
(35
|
)
|
||||||||||
Accrued compensation and related benefits
|
82
|
(2,222
|
)
|
-
|
(2,140
|
)
|
||||||||||
Income taxes payable
|
-
|
(1,340
|
)
|
-
|
(1,340
|
)
|
||||||||||
Other liabilities
|
(799
|
)
|
2,703
|
-
|
1,904
|
|||||||||||
Net cash used in operating activities from discontinued
operations
|
73,162
|
(44,504
|
)
|
98
|
|
28,756
|
||||||||||
Net cash flows from operating activities
|
51,679
|
61,773
|
(35,992
|
)
|
77,460
|
|||||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Purchase of property and equipment
|
(6,421
|
)
|
(7,180
|
)
|
-
|
(13,601
|
)
|
|||||||||
Equity investments
|
-
|
(17,086
|
)
|
-
|
(17,086
|
)
|
||||||||||
Acquisitions
|
(44,063
|
)
|
875
|
-
|
(43,188
|
)
|
||||||||||
Investment in subsidiaries
|
-
|
(35,992
|
)
|
35,992
|
-
|
|||||||||||
Proceeds from sale of assets
|
-
|
30,000
|
-
|
30,000
|
||||||||||||
Deposits and payments for station purchases and other
assets
|
(1,085
|
)
|
(44
|
)
|
-
|
(1,129
|
)
|
|||||||||
Net cash flows used in investing activities from discontinued
operations
|
-
|
(1,223
|
)
|
-
|
(1,223
|
)
|
||||||||||
Net cash flows used in investing activities
|
(51,569
|
)
|
(30,650
|
)
|
35,992
|
(46,227
|
)
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Repayment of debt
|
(20
|
)
|
(48,000
|
)
|
-
|
(48,020
|
)
|
|||||||||
Proceeds from credit facility
|
-
|
33,000
|
-
|
33,000
|
||||||||||||
Proceeds from exercise of stock options
|
-
|
52
|
-
|
52
|
||||||||||||
Payment to minority interest shareholders
|
-
|
(2,940
|
)
|
-
|
(2,940
|
)
|
||||||||||
Net cash flows used in financing activities
|
(20
|
)
|
(17,888
|
)
|
-
|
(17,908
|
)
|
|||||||||
INCREASE
IN CASH AND CASH EQUIVALENTS
|
90
|
13,235
|
-
|
13,325
|
||||||||||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
794
|
18,287
|
-
|
19,081
|
||||||||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$
|
884
|
$
|
31,522
|
$
|
-
|
$
|
32,406
|
||||||||
Description
|
Balance
at
Beginning
of Year
|
Additions
Charged
to
Expense
|
Acquired
from
Acquisitions
|
Deductions
|
Balance
at End
of Year
|
|||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Allowance
for Doubtful Accounts:
|
||||||||||||||||||||
2008
|
$ | 2,021 | $ | 5,172 | $ | 55 | $ | 3,459 | $ | 3,789 | ||||||||||
2007
|
3,743 | 1,452 | - | 3,174 | 2,021 | |||||||||||||||
2006
|
2,710 | 4,177 | 23 | 3,167 | 3,743 |
Description
|
Balance
at Beginning
of Year
|
Additions
Charged
to Expense
|
Acquired
from
Acquisitions
|
Deductions(1)
|
Balance
at End
of Year
|
|||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Valuation
Allowance for Deferred Tax Assets:
|
||||||||||||||||||||
2008
|
$ | 133,977 | $ | 69,212 | $ | 1,088 | $ | 1,479 | $ | 205,756 | ||||||||||
2007
|
2,248 | 132,085 | - | (356 | ) | 133,977 | ||||||||||||||
2006
|
791 | 1,457 | - | - | 2,248 | |||||||||||||||
(1) Relates
to an increase or (decrease) to the valuation allowance for
deferred tax assets pertaining to interest rate swaps charged to
accumulated other comprehensive income instead of provision for income
taxes.
|
KBFB-FM
|
WFXC-FM
|
WNNL-FM
|
WRNB-FM
|
KBXX-FM
|
WFXK-FM
|
WOL-AM
|
WTPS-AM
|
KMJQ-FM
|
WHHL-FM
|
WOLB-AM
|
WWIN-AM
|
KROI-FM
|
WHTA-FM
|
WPHI-FM
|
WWIN-FM
|
KSOC-FM
|
WKJM-FM
|
WPPZ-FM
|
WYCB-AM
|
WCDX-FM
|
WKJS-FM
|
WPRS-FM
|
|
WERQ-FM
|
WKYS-FM
|
WPZZ-FM
|
|
WFUN-FM
|
WMMJ-FM
|
WQOK-FM
|
WCHB-AM
|
WDMK-FM
|
WHTD-FM
|
WIZF-FM
|
WMOJ-FM
|
WDBZ-AM
|
WJYD-FM
|
WCKX-FM
|
WXMG-FM
|
WERE-AM
|
WJMO-AM
|
WZAK-FM
|
WENZ-FM
|
WDNI-LP
|
WHHH-FM
|
WTLC-AM
|
WTLC-FM
|
WNOU-FM
|
|
Registration
Number
|
Date
Filed
|
|
333-47762
|
October 11,
2000
|
|
333-58436
|
April 6,
2001
|
|
333-81622
|
January 29,
2002
|
Registration
Number
|
Date
Filed
|
|
333-65278
|
July 17,
2001
|
|
333-127258 | August 5, 2005 |
Name
|
Registration
Number
|
Date
Filed
|
||
1999 Stock Option and Restricted
Stock Plan
|
333-78123
|
May 10,
1999
|
||
1999 Stock Option and Restricted
Stock Plan
|
333-42342
|
July 27,
2000
|
||
1999 Stock Option and Restricted
Stock Plan
|
333-62718
|
June 11,
2001
|
||
1999 Stock Option and Restricted
Stock Plan
|
333-100711
|
October 24,
2002
|
||
Amended and Restated 1999 Stock
Option and Restricted Stock Plan
|
333-116805
|
June 24,
2004
|
||
Amended and Restated Employment
Agreement Between Radio One, Inc. and Scott R. Royster dated October 18, 2000 and Amended and Restated
Employment Agreement Between Radio One, Inc. and Linda J. Eckard Vilardo
dated October 31,
2000
|
333-121726
|
December 29,
2004
|
1.
|
I
have reviewed this annual report on Form 10-K of Radio One,
Inc.;
|
||||
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
||||
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
||||
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
||||
a)
|
designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
||||
b)
|
designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
||||
c)
|
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
||||
d)
|
disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of this
report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
||||
a)
|
all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
||||
b)
|
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
March 16, 2009
|
By:
|
/s/
Alfred C. Liggins, III
|
||
Alfred
C. Liggins, III
|
||||
President
and Chief Executive Officer
|
||||
1.
|
I
have reviewed this annual report on Form 10-K of Radio One,
Inc.;
|
||||
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
||||
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
||||
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
||||
a)
|
designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
||||
b)
|
designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
||||
c)
|
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
||||
d)
|
disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of this
report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
5.
|
The
registrant’s other certifying officers and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
||||
a)
|
all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
||||
b)
|
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
March 16, 2009
|
By:
|
/s/
Peter D. Thompson
|
||
Peter
D. Thompson
|
||||
Executive
Vice President, Chief Financial Officer and Principal Accounting
Officer
|
||||
(i)
|
the
accompanying Annual Report on Form 10-K of the Company for the year ended
December 31, 2008 (the “Report”) fully complies with the requirements of
Section 13(a) or Section 15(d), as applicable, of the Securities Exchange
Act of 1934, as amended; and
|
||
(ii)
|
the
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|
By:
|
/s/
Alfred C. Liggins, III
|
|||
Name:
Alfred C. Liggins, III
|
||||
Title:
President and Chief Executive Officer
|
(i)
|
the
accompanying Annual Report on Form 10-K of the Company for the year ended
December 31, 2008 (the “Report”) fully complies with the requirements of
Section 13(a) or Section 15(d), as applicable, of the Securities Exchange
Act of 1934, as amended; and
|
(ii)
|
the
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|
By:
|
/s/
Peter D. Thompson
|
|||
Name:
Peter D. Thompson
|
||||
Title:
Executive Vice President
|
||||
and
Chief Financial Officer
|