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Radio One, Inc. Reports Fourth Quarter Results

  (March 07, 2017)

WASHINGTON, March 7, 2017 /PRNewswire/ -- Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended December 31, 2016.  Net revenue was approximately $113.6 million, an increase of 3.8% from the same period in 2015. Broadcast and internet operating income1 was approximately $43.1 million, an increase of 5.9% from the same period in 2015. The Company reported operating income of approximately $17.1 million for the three months ended December 31, 2016, compared to an operating loss of $11.3 million for the same period in 2015. Net loss was approximately $3.4 million or $0.07 per share (basic) compared to approximately $24.3 million or $0.50 per share (basic) for the same period in 2015. 

Alfred C. Liggins, III, Radio One's CEO and President stated, "Political advertising helped our radio broadcasting segment achieve both revenue and Adjusted EBITDA growth compared to the fourth quarter of 2015. Together with a nice rebound in TV advertising revenue, which was up 18%, this helped drive our 6% growth in consolidated Adjusted EBITDA. During the fourth quarter we booked our first income from MGM National Harbor, which had a strong opening in December. Overall I was pleased with our performance for the year, which was towards the upper end of EBITDA guidance. First quarter radio revenues have been understandably soft, given the political comps from 2016, and we are currently pacing down approximately 5%. While we expect both Radio and Reach Media to struggle against tough comps in the first quarter, our TV business and MGM investment should offset these declines, and we will be able to grow our Adjusted EBITDA again in 2017. TV One's ratings are rebounding from last year's loss of Martin, and for fourth quarter total day households were up 2% and Persons 25-54 were up 3% compared to Q4 2015. The positive ratings momentum is continuing into the first quarter of 2017, where we are up 7% and 5% in total day households and Persons 25-54, respectively."


 

RESULTS OF OPERATIONS



















Three Months Ended December 31,


Year Ended December 31, 



2016


2015


2016


2015

STATEMENT OF OPERATIONS

(unaudited)


(unaudited, as reclassified2)


(unaudited)


(as reclassified2)



(in thousands, except share data)


(in thousands, except share data)











NET REVENUE

$                           113,556


$                                 109,384


$                  456,219


$                                  450,861


OPERATING EXPENSES









Programming and technical, excluding stock-based compensation

37,211


35,743


134,000


134,410


Selling, general and administrative, excluding stock-based compensation

33,252


32,962


147,599


151,359


Corporate selling, general and administrative, excluding stock-based
compensation

15,107


14,996


47,532


47,252


Stock-based compensation

1,091


1,312


3,410


5,107


Depreciation and amortization 

8,524


9,010


34,247


35,355


Impairment of long-lived assets

1,287


26,666


1,287


41,211


Total operating expenses 

96,472


120,689


368,075


414,694


             Operating income (loss)

17,084


(11,305)


88,144


36,167


INTEREST INCOME

40


34


214


102


INTEREST EXPENSE

20,148


20,418


81,636


80,038


(GAIN) LOSS ON RETIREMENT OF DEBT

-


-


(2,646)


7,091


OTHER (INCOME) EXPENSE, net

(852)


(30)


(928)


216


               (Loss) income before provision for (benefit from) income taxes and 
               noncontrolling interest in (loss) income of subsidiaries 

(2,172)


(31,659)


10,296


(51,076)


PROVISION FOR (BENEFIT FROM) INCOME TAXES

1,315


(7,853)


9,580


15,058


CONSOLIDATED NET (LOSS) INCOME 

(3,487)


(23,806)


716


(66,134)


NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(120)


543


1,139


7,888


CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

$                             (3,367)


$                                  (24,349)


$                       (423)


$                                   (74,022)











AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS









CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

$                             (3,367)


$                                  (24,349)


$                       (423)


$                                   (74,022)











Weighted average shares outstanding - basic3

47,463,258


48,220,262


47,924,609


48,027,888


Weighted average shares outstanding - diluted4

47,463,258


48,220,262


47,924,609


48,027,888

 

 











Three Months Ended December 31,


Year Ended December 31, 



2016


2015


2016


2015


PER SHARE DATA - basic and diluted:

(unaudited)


(unaudited, as reclassified2)


(unaudited)


(unaudited, as reclassified2)



(in thousands, except per share data)


(in thousands, except per share data)











    Consolidated net loss attributable to common stockholders (basic)

$                        (0.07)


$                                         (0.50)


$                    (0.01)


$                                      (1.54)











    Consolidated net loss attributable to common stockholders (diluted)

$                        (0.07)


$                                         (0.50)


$                    (0.01)


$                                      (1.54)











SELECTED OTHER DATA









          Broadcast and internet operating income 1

$                      43,093


$                                      40,679


$                174,620


$                                  165,092


          Broadcast and internet operating income margin (% of net revenue)

37.9%


37.2%


38.3%


36.6%











Broadcast and internet operating income reconciliation:


















    Consolidated net loss attributable to common stockholders

$                      (3,367)


$                                     (24,349)


$                     (423)


$                                  (74,022)


    Add back non-broadcast and internet operating income items included in consolidated
net loss:









          Interest income

(40)


(34)


(214)


(102)


          Interest expense

20,148


20,418


81,636


80,038


          Provision for (benefit from) income taxes

1,315


(7,853)


9,580


15,058


          Corporate selling, general and administrative expenses

15,107


14,996


47,532


47,252


          Stock-based compensation

1,091


1,312


3,410


5,107


          (Gain) loss on retirement of debt

-


-


(2,646)


7,091


          Other (income) expense, net

(852)


(30)


(928)


216


          Depreciation and amortization

8,524


9,010


34,247


35,355


          Noncontrolling interest in (loss) income of subsidiaries

(120)


543


1,139


7,888


          Impairment of long-lived assets

1,287


26,666


1,287


41,211


          Broadcast and internet operating income

$                      43,093


$                                      40,679


$                174,620


$                                  165,092











Adjusted EBITDA5

$                      30,638


$                                      28,911


$                136,186


$                                  125,470











Adjusted EBITDA reconciliation:


















    Consolidated net loss attributable to common stockholders:

$                      (3,367)


$                                     (24,349)


$                     (423)


$                                  (74,022)


          Interest income

(40)


(34)


(214)


(102)


          Interest expense

20,148


20,418


81,636


80,038


          Provision for income taxes

1,315


(7,853)


9,580


15,058


          Depreciation and amortization

8,524


9,010


34,247


35,355


          EBITDA

$                      26,580


$                                       (2,808)


$                124,826


$                                    56,327


          Stock-based compensation

1,091


1,312


3,410


5,107


          (Gain) loss on retirement of debt

-


-


(2,646)


7,091


          Other (income) expense, net

(852)


(30)


(928)


216


          Noncontrolling interest in (loss) income of subsidiaries

(120)


543


1,139


7,888


          Employment Agreement Award and incentive plan award expenses

2,021


2,461


7,823


4,884


          Severance-related costs*

212


767


856


2,746


          Cost method investment income*

419


-


419


-


          Impairment of long-lived assets

1,287


26,666


1,287


41,211


          Adjusted EBITDA

$                      30,638


$                                      28,911


$                136,186


$                                  125,470











*The Company has modified the definition of Adjusted EBITDA for the inclusion of severance-related costs and cost-method investment income.






All prior periods have been reclassified to conform to the current period presentation.









 

 


December 31, 2016


December 31, 2015


(unaudited) 






(in thousands)


SELECTED BALANCE SHEET DATA:




Cash and cash equivalents and restricted cash

$                    46,781


$                   67,376



Intangible assets, net

1,018,333


1,042,956



Total assets

1,358,786


1,346,524



Total debt (including current portion, net of original issue discount and issuance costs)

1,006,236


1,024,337



Total liabilities

1,417,502


1,407,062



Total deficit

(71,126)


(71,824)



Redeemable noncontrolling interest

12,410


11,286










Current Amount
Outstanding


Applicable Interest
Rate



(in thousands)




SELECTED LEVERAGE DATA:




2015 Credit Facility, net of original issue discount and issuance costs of approximately
$8.2 million (subject to variable rates) (a)

$                  336,574


5.27%



9.25% senior subordinated notes due February 2020, net of original issue discount and
issuance costs of approximately $2.3 million (fixed rate)

312,737


9.25%



7.375% senior secured notes due April 2022, net of original issue discount and issuance
costs of approximately $4.9 million (fixed rate)

345,053


7.375%



Comcast Note due April 2019 (fixed rate)

11,872


10.47%









     (a)       Subject to variable Libor plus a spread that is incorporated into the applicable interest rate set forth above.

 

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements represent management's current expectations and are based upon information available to Radio One at the time of this release. These forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond Radio One's control, that may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  Important factors that could cause actual results to differ materially are described in Radio One's reports on Forms 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission (the "SEC"). Radio One does not undertake any duty to update any forward-looking statements.

Net revenue consists of gross revenue, net of local and national agency and outside sales representative commissions. Agency and outside sales representative commissions are calculated based on a stated percentage applied to gross billing.

 



Three Months Ended December 31,








2016


2015


$ Change


% Change



  (Unaudited)







(in thousands)





Net Revenue:












Radio Advertising


$

51,025


$

55,755


$

(4,730)


-8.5%

Political Advertising



5,719



1,172



4,547


388.0%

Digital Advertising



7,290



6,451



839


13.0%

Cable Television Advertising



22,687



19,202



3,485


18.1%

Cable Television Affiliate Fees



25,326



25,334



(8)


0.0%

Event Revenues & Other



1,509



1,470



39


2.7%













Net Revenue (as reported)


$

113,556


$

109,384


$

4,172


3.8%

 

Net revenue increased to approximately $113.6 million for the quarter ended December 31, 2016, from approximately $109.4 million for the same period in 2015, an increase of 3.8%. Net revenues from our radio broadcasting segment increased 1.2% for the quarter ended December 31, 2016, versus the same period in 2015. We experienced net revenue growth most significantly in our Charlotte, Cleveland, Indianapolis, Raleigh and St. Louis markets; however, this growth was partially offset by declines in other markets (with Dallas, Houston and Washington D.C. experiencing the most significant declines). Reach Media's net revenues decreased 5.5% in the fourth quarter 2016, compared to the same period in 2015 due primarily to lower advertising revenue. We recognized approximately $48.0 million of revenue from our cable television segment during the three months ended December 31, 2016, compared to approximately $44.7 million for the same period in 2015, the increase was primarily from higher advertising sales. Finally, net revenues for our internet business increased 20.9% for the three months ended December 31, 2016, compared to the same period in 2015 due primarily to an increase in direct revenues.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $85.6 million for the quarter ended December 31, 2016, up 2.2% from the approximately $83.7 million incurred for the comparable quarter in 2015. The operating expense increase was primarily driven by an increase of approximately $1.7 million in programming and technical expenses at our cable television segment due primarily to higher content amortization expense.

Depreciation and amortization expense decreased to approximately $8.5 million compared to approximately $9.0 million for the quarter ended December 31, 2015. The decrease was due to the completion of useful lives for certain assets. 

Impairment of long-lived assets for the quarters ended December 31, 2016 and 2015 was approximately $1.3 million and $26.7 million, respectively. Our annual 2016 impairment testing resulted in a non-cash impairment charge of approximately $1.3 million associated with of our Columbus market radio broadcasting licenses. Our annual 2015 impairment testing resulted in a non-cash impairment charge of approximately $3.1 million related to goodwill in our Cincinnati market as well as a non-cash impairment charge of approximately $23.6 million associated with several of our radio broadcasting licenses.

Interest expense decreased to approximately $20.1 million for the quarter ended December 31, 2016, compared to approximately $20.4 million for the same period in 2015.  On April 17, 2015, the Company's 2011 Credit Agreement, and TV One notes were paid off, with balances of $367.6 million and $119.0 million, respectively. The payoffs were achieved by the Company entering into its new $350.0 million 2015 Credit Facility, issuing the 2022 Notes in an aggregate principal amount of $350.0 million and the Comcast Note in the aggregate principal amount of approximately $11.9 million. During the second quarter of 2016, the Company redeemed approximately $20 million of its 2020 Notes at a discount. The Company made cash interest payments of approximately $18.0 million on its outstanding debt for the quarter ended December 31, 2016, compared to cash interest payments of approximately $17.7 million on all outstanding instruments for the quarter ended December 31, 2015.

The provision for income taxes was approximately $1.3 million for the quarter ended December 31, 2016, compared to a benefit from income taxes of approximately $7.9 million, for the quarter ended December 31, 2015, with the change primarily attributable to the deferred tax liability ("DTL") for indefinite-lived intangible assets. The change in taxes was primarily due to a decrease in impairment charges for the comparable quarter.  The Company received a net tax refund of $21,000 for the quarter ended December 31, 2016 and paid $12,000 in taxes for the quarter ended December 31, 2015.

Other pertinent financial information includes capital expenditures of approximately $1.1 million and $1.5 million for the quarters ended December 31, 2016 and 2015, respectively.  As of December 31, 2016, the Company had total debt (net of cash and restricted cash balances and original issue discount) of approximately $959.5 million. There were no stock repurchases made during the three month period ended December 31, 2016. During the year ended December 31, 2016, the Company repurchased 1,255,592 shares of Class D common stock in the aggregate amount of approximately $3.0 million. The Company, in connection with its 2009 stock plan, is authorized to purchase shares of Class D common stock to satisfy employee tax obligations in connection with the vesting of share grants under the plan. During the year ended December 31, 2016, the Company repurchased 330,111 shares of Class D common stock, to satisfy employee tax obligations, in the amount of $568,000.  During the year ended December 31, 2015, the Company repurchased 345,293 shares of Class D common stock, to satisfy employee tax obligations, in the amount of approximately $1.4 million. There were no stock repurchases made during the three month period ended December 31, 2015.

The Company also announced that it is monitoring market conditions and opportunities to refinance the approximately $345.0 million in borrowings outstanding under its existing senior credit facility, which matures in December 2018.  While the Company continually seeks to act opportunistically, there are no assurances that the Company will complete any refinancing, in whole or in part, of the existing senior credit facilities.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three months and year ended December 31, 2016 and 2015 are included. These detailed, unaudited and adjusted statements of operations include certain reclassifications.  These reclassifications had no effect on previously reported net income or loss, or any other previously reported statements of operations, balance sheet or cash flow amounts.

 






Three Months Ended December 31, 2016






(in thousands, unaudited)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Internet

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

113,556

$

48,860

$

11,602

$

6,547

$

47,996

$

(1,449)


OPERATING EXPENSES:














Programming and technical 


37,211


9,787


5,596


2,023


20,762


(957)


Selling, general and administrative


33,252


19,947


2,117


4,503


7,177


(492)


Corporate selling, general and administrative


15,107


-


1,162


-


2,445


11,500


Stock-based compensation


1,091


116


17


(4)


-


962


Depreciation and amortization


8,524


1,094


61


395


6,560


414


Impairment of long-lived assets


1,287


1,287


-


-


-


-


Total operating expenses


96,472


32,231


8,953


6,917


36,944


11,427


           Operating income (loss) 


17,084


16,629


2,649


(370)


11,052


(12,876)


INTEREST INCOME


40


-


-


-


-


40


INTEREST EXPENSE


20,148


330


-


-


1,919


17,899


OTHER INCOME, net


(852)


(379)


-


-


-


(473)


(Loss) income before provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries 


(2,172)


16,678


2,649


(370)


9,133


(30,262)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


1,315


(2,263)


3,206


27


16,300


(15,955)


CONSOLIDATED NET (LOSS) INCOME 


(3,487)


18,941


(557)


(397)


(7,167)


(14,307)


NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS


(120)


-


-


-


-


(120)


NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(3,367)

$

18,941

$

(557)

$

(397)

$

(7,167)

$

(14,187)


















Adjusted EBITDA5

$

30,638

$

19,308

$

2,727

$

24

$

17,621

$

(9,042)

 

 



Three Months Ended December 31, 2015






(in thousands, unaudited, as reclassified2)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Internet

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

109,384

$

48,303

$

12,271

$

5,415

$

44,725

$

(1,330)


OPERATING EXPENSES:














Programming and technical 


35,743


10,161


5,981


1,618


19,020


(1,037)


Selling, general and administrative


32,962


19,540


2,583


3,719


8,032


(912)


Corporate selling, general and administrative


14,996


-


1,179


-


2,732


11,085


Stock-based compensation


1,312


88


-


20


-


1,204


Depreciation and amortization


9,010


1,440


48


438


6,553


531


Impairment of long-lived assets


26,666


26,666


-


-


-


-


Total operating expenses


120,689


57,895


9,791


5,795


36,337


10,871


           Operating (loss) income


(11,305)


(9,592)


2,480


(380)


8,388


(12,201)


INTEREST INCOME


34


-


-


-


-


34


INTEREST EXPENSE


20,418


321


-


-


1,919


18,178


OTHER (INCOME) EXPENSE, net


(30)


16


-


-


-


(46)


(Loss) income before (benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries 


(31,659)


(9,929)


2,480


(380)


6,469


(30,299)


(BENEFIT FROM) PROVISION FOR INCOME TAXES


(7,853)


(8,085)


200


-


32


-


CONSOLIDATED NET (LOSS) INCOME 


(23,806)


(1,844)


2,280


(380)


6,437


(30,299)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


543


-


-


-


-


543


NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(24,349)

$

(1,844)

$

2,280

$

(380)

$

6,437

$

(30,842)


















Adjusted EBITDA5

$

28,911

$

18,933

$

2,726

$

145

$

15,328

$

(8,221)

 

 






Year Ended December 31, 2016






(in thousands, unaudited)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Internet

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

456,219

$

194,457

$

53,930

$

22,215

$

191,854

$

(6,237)


OPERATING EXPENSES:














Programming and technical 


134,000


38,161


22,880


7,676


69,658


(4,375)


Selling, general and administrative


147,599


80,146


18,127


14,613


36,575


(1,862)


Corporate selling, general and administrative


47,532


-


3,653


-


10,040


33,839


Stock-based compensation


3,410


304


48


2


-


3,056


Depreciation and amortization


34,247


4,350


210


1,694


26,223


1,770


Impairment of long-lived assets


1,287


1,287


-


-


-


-


Total operating expenses


368,075


124,248


44,918


23,985


142,496


32,428


           Operating income (loss) 


88,144


70,209


9,012


(1,770)


49,358


(38,665)


INTEREST INCOME


214


-


-


-


-


214


INTEREST EXPENSE


81,636


1,331


-


-


7,676


72,629


GAIN ON RETIREMENT OF DEBT


(2,646)


-


-


-


-


(2,646)


OTHER INCOME, net


(928)


(401)


-


-


-


(527)


Income (loss) before provision for income taxes and noncontrolling interest
in income of subsidiaries 


10,296


69,279


9,012


(1,770)


41,682


(107,907)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


9,580


5,694


3,315


60


16,368


(15,857)


CONSOLIDATED NET INCOME (LOSS )


716


63,585


5,697


(1,830)


25,314


(92,050)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


1,139


-


-


-


-


1,139


NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(423)

$

63,585

$

5,697

$

(1,830)

$

25,314

$

(93,189)


















Adjusted EBITDA5

$

136,186

$

76,872

$

9,332

$

(63)

$

75,591

$

(25,546)

 






Year Ended December 31, 2015






(in thousands, unaudited, as reclassified2)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting


Media


Internet

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

450,861

$

197,396

$

54,779

$

21,177

$

183,623

$

(6,114)


OPERATING EXPENSES:














Programming and technical 


134,410


40,806


22,981


7,873


67,290


(4,540)


Selling, general and administrative


151,359


85,569


18,493


13,754


37,595


(4,052)


Corporate selling, general and administrative


47,252


-


4,310


-


12,247


30,695


Stock-based compensation


5,107


295


-


72


-


4,740


Depreciation and amortization


35,355


4,910


185


1,997


26,152


2,111


Impairment of long-lived assets


41,211


26,666


-


14,545


-


-


Total operating expenses


414,694


158,246


45,969


38,241


143,284


28,954


           Operating income (loss) 


36,167


39,150


8,810


(17,064)


40,339


(35,068)


INTEREST INCOME


102


-


-


-


(93)


195


INTEREST EXPENSE


80,038


1,236


-


-


9,131


69,671


LOSS ON RETIREMENT OF DEBT


7,091


-


-


-


-


7,091


OTHER EXPENSE, net


216


69


-


-


92


55


(Loss) income before provision for income taxes and noncontrolling interest in 
(loss) income of subsidiaries 


(51,076)


37,845


8,810


(17,064)


31,023


(111,690)


PROVISION FOR INCOME TAXES


15,058


14,711


315


-


32


-


CONSOLIDATED NET (LOSS) INCOME


(66,134)


23,134


8,495


(17,064)


30,991


(111,690)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


7,888


-


-


-


-


7,888


NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(74,022)

$

23,134

$

8,495

$

(17,064)

$

30,991

$

(119,578)


















Adjusted EBITDA5

$

125,470

$

72,189

$

9,196

$

(307)

$

67,376

$

(22,984)

 

Radio One, Inc. will hold a conference call to discuss its results for fourth fiscal quarter of 2016. The conference call is scheduled for Tuesday, March 07, 2017 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-800-230-1074; international callers may dial direct (+1) 612-288-0337.

A replay of the conference call will be available from 12:00 p.m. EST March 07, 2017 until 11:59 p.m. EST March 09, 2017. Callers may access the replay by calling 1-800-475-6701; international callers may dial direct (+1) 320-365-3844. The replay Access Code is 416422. Access to live audio and a replay of the conference call will also be available on Radio One's corporate website at www.radio-one.com. The replay will be made available on the website for seven days after the call.

Radio One, Inc. (radio-one.com), together with its subsidiaries, is a diversified media company that primarily targets African-American and urban consumers. It is one of the nation's largest radio broadcasting companies, currently owning and/or operating 55 stations in 15 urban markets in the United States. Through its controlling interest in Reach Media, Inc. (blackamericaweb.com), the Company also operates syndicated programming including the Tom Joyner Morning Show, the Russ Parr Morning Show, the Rickey Smiley Morning Show, the DL Hughley Show, Bishop T.D. Jakes' Empowering Moments, and the Reverend Al Sharpton Show.

Beyond its core radio broadcasting franchise, Radio One owns Interactive One (interactiveone.com), the fastest growing and definitive digital resource for Black and Latin Americans, reaching millions each month through social content, news, information, and entertainment. Interactive One operates a number of branded sites including News One (news), The Urban Daily (men), Hello Beautiful (women), Global Grind (Millennials) and social networking websites such as BlackPlanet and MiGente. The Company also owns TV One, LLC (tvone.tv), a cable/satellite network programming serving more than 57 million households, offering a broad range of real-life and entertainment-focused original programming, classic series, movies and music designed to entertain, inform and inspire a diverse audience of adult Black viewers.  Additionally, One Solution combines the dynamics of Radio One's holdings to provide brands with an integrated and effectively engaging marketing approach that reaches 82% of Black Americans throughout the country.

Notes:

1              "Broadcast and internet operating income" consists of net (loss) income before depreciation and amortization, corporate selling, general and administrative expenses, stock-based compensation, income taxes, noncontrolling interest in income (loss) of subsidiaries, interest expense, impairment of long-lived assets, other (income) expense, loss (gain) on retirement of debt, and interest income. Broadcast and internet operating income is not a measure of financial performance under generally accepted accounting principles. Nevertheless, broadcast and internet operating income is a significant measure used by our management to evaluate the operating performance of our core operating segments because broadcast and internet operating income provides helpful information about our results of operations apart from expenses associated with our fixed assets and long-lived intangible assets, income taxes, investments, debt financings and retirements, overhead, stock-based compensation, impairment charges, and asset sales. Our measure of broadcast and internet operating income is similar to our historic use of station operating income, however, reflects our more diverse business and, therefore, may not be similar to "station operating income" or other similarly titled measures used by other companies. Broadcast and internet operating income does not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as an alternative to those measurements as an indicator of our performance. A reconciliation of net income (loss) to broadcast and internet operating income has been provided in this release.

2              Certain reclassifications have been made to prior year balances to conform to the current year presentation.  These reclassifications had no effect on previously reported consolidated net income or loss or any other statement of operations, balance sheet or cash flow amounts.  Where applicable, these financial statements have been identified as "As Reclassified."

3              For the three months ended December 31, 2016 and 2015, Radio One had 47,463,258 and 48,220,262 shares of common stock outstanding on a weighted average basis (basic), respectively.  For the year ended December 31, 2016 and 2015, Radio One had 47,924,609 and 48,027,888 shares of common stock outstanding on a weighted average basis (basic), respectively. 

4              For the three months ended December 31, 2016 and 2015, Radio One had 47,463,258 and 48,220,262 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock options), respectively.  For the year ended December 31, 2016 and 2015, Radio One had 47,924,609 and 48,027,888 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock options), respectively.

5              "Adjusted EBITDA" consists of net loss plus (1) depreciation, amortization, income taxes, interest expense, noncontrolling interest in (loss) income of subsidiaries, impairment of long-lived assets, stock-based compensation, (gain) loss on retirement of debt, Employment Agreement and incentive plan award expenses, severance-related costs, cost investment income, less (2) other income and interest income. Net income before interest income, interest expense, income taxes, depreciation and amortization is commonly referred to in our business as "EBITDA." Adjusted EBITDA and EBITDA are not measures of financial performance under generally accepted accounting principles. However, we believe Adjusted EBITDA is often a useful measure of a company's operating performance and is a significant measure used by our management to evaluate the operating performance of our business because Adjusted EBITDA excludes charges for depreciation, amortization and interest expense that have resulted from our acquisitions and debt financing, our taxes, impairment charges, gain on retirements of debt, and any discontinued operations. Accordingly, we believe that Adjusted EBITDA provides useful information about the operating performance of our business, apart from the expenses associated with our fixed assets and long-lived intangible assets, capital structure or the results of our affiliated company. Adjusted EBITDA is frequently used as one of the measures for comparing businesses in our industry, although our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies, including, but not limited to the fact that our definition includes the results of all four segments (radio broadcasting, Reach Media, internet and cable television).  Adjusted EBITDA and EBITDA do not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as alternatives to those measurements as an indicator of our performance. A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA has been provided in this release.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/radio-one-inc-reports-fourth-quarter-results-300418789.html

SOURCE Radio One

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