Radio One, Inc. Reports Fourth Quarter Results

Radio One, Inc. Reports Fourth Quarter Results

WASHINGTON, March 3, 2011 /PRNewswire/ -- Radio One, Inc. (Nasdaq: ROIAK and ROIA) today reported its results for the quarter ended December 31, 2010. Net revenue was approximately $71.2 million, an increase of 5.8% from the same period in 2009. Station operating income(1) was approximately $28.0 million, an increase of 6.5% from the same period in 2009. The Company recorded a non-cash impairment charge against its FCC licenses and goodwill of approximately $36.1 million, which led to a net operating loss of approximately $19.8 million. Net loss was approximately $27.2 million or a loss of $0.52 per share, an increase from the reported net loss of approximately $14.9 million or $0.28 per share for the same period in 2009.

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Alfred C. Liggins, III, Radio One's CEO and President stated, "Overall core radio revenues were up 8.1% in the fourth quarter compared to last year led by national business, which was up 19.3%, and radio segment internet revenue, which was up 179.1%. Our internet business revenues were down 8.0% this quarter compared to the fourth quarter of 2009 but were up 14.1% for the full year; and we continue to believe that our on-line platform will be a major source of revenue and EBITDA growth for the future. Q1 2011 has started sluggishly, with radio station revenue currently pacing flat to up low single-digits on a combined basis. Normalizing for a timing difference for Reach Media's cruise, consolidated net revenue and EBITDA are expected to be approximately flat year over year.

During the fourth quarter 2010, the Company completed the Amended Exchange Offer relating to all its Senior Subordinated Notes due 2011 and 2013. In addition, the amendment to our senior secured credit facility became effective which cured all prior defaults that were triggered in each of the second and third quarters under the terms of our credit facility.

Our investment in TV One continues to perform strongly. TV One had Q4 net revenues of $28.7 million (+17.1% vs Q4 2009) and EBITDA of $5.9 million after valuation expenses of $2.0 million (+12.5% vs Q4 2009). On February 25, 2011, TV One completed a private debt offering of $119 million. This five year financing at a 10% interest rate was obtained from funds managed by Canyon Capital Advisors LLC and was structured to allow for continued distributions to TV One shareholders. $82.4 million of the proceeds of this financing were used by TV One to repurchase 15.4% of its outstanding membership interests from certain financial investors and 2.0% of its outstanding membership interests held by TV One management (representing approximately 50% of interests held by management). These redemptions increased Radio One's holding in TV One from 36.8% to approximately 44.6%. TV One plans to use the balance of the Canyon funding to repurchase DirecTV's 12.4% interest in the Network.

Even though the marketplace continues to evolve and present new challenges, I am confident that Radio One is well positioned to sustain its operational and industry progress."

RESULTS OF OPERATIONS
---------------------

Three Months Ended
December 31,
------------------
2010 2009
---- ----
STATEMENT OF OPERATIONS (unaudited)
-----------
(in thousands, except
share data)
----------------------

NET REVENUE $71,203 $67,258
OPERATING EXPENSES
Programming and
technical, excluding
stock-based
compensation 18,308 18,778
Selling, general and
administrative,
excluding stock-based
compensation 24,873 22,151
Corporate selling,
general and
administrative,
excluding stock-based
compensation 7,580 8,459
Stock-based compensation 922 269
Depreciation and
amortization 3,244 5,208
Impairment of long-lived
assets 36,063 16,983
------ ------
Total operating expenses 90,990 71,848
------ ------
Operating (Loss) Income (19,787) (4,590)
INTEREST INCOME 32 44
INTEREST EXPENSE 15,775 9,367
GAIN ON RETIREMENT OF
DEBT 6,646 -
EQUITY IN INCOME OF
AFFILIATED COMPANY 1,726 358
OTHER EXPENSE, net 127 1
--- ---
Loss before (benefit
from) provision for
income taxes,
noncontrolling interest
in income of
subsidiaries and gain
(loss) from discontinued
operations (27,285) (13,556)
(BENEFIT FROM) PROVISION
FOR INCOME TAXES (714) (326)
---- ----
Net income (loss) from
continuing operations (26,571) (13,230)
GAIN (LOSS) FROM
DISCONTINUED OPERATIONS,
net of tax 1 (979)
--- ----
CONSOLIDATED NET LOSS (26,570) (14,209)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES 581 679
--- ---
CONSOLIDATED NET LOSS
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(27,151) $(14,888)
======== ========

AMOUNTS ATTRIBUTABLE TO
COMMON STOCKHOLDERS
NET LOSS FROM CONTINUING
OPERATIONS $(27,152) $(13,909)
GAIN (LOSS) FROM
DISCONTINUED OPERATIONS,
net of tax 1 (979)
--- ----
CONSOLIDATED NET LOSS
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(27,151) $(14,888)
======== ========

Weighted average shares
outstanding -basic (2) 52,087,460 52,735,892
Weighted average shares
outstanding -diluted
(3) 52,087,460 52,735,892

Year Ended December
31,
--------------------
2010 2009
---- ----
STATEMENT OF OPERATIONS (unaudited) (audited)
----------- ---------
(in thousands,
except share data)
-------------------

NET REVENUE $279,906 $272,092
OPERATING EXPENSES
Programming and
technical, excluding
stock-based
compensation 75,044 75,547
Selling, general and
administrative,
excluding stock-based
compensation 102,330 90,695
Corporate selling,
general and
administrative,
excluding stock-based
compensation 28,117 23,492
Stock-based compensation 5,799 1,649
Depreciation and
amortization 17,439 21,011
Impairment of long-lived
assets 36,063 65,937
------ ------
Total operating expenses 264,792 278,331
------- -------
Operating (Loss) Income 15,114 (6,239)
INTEREST INCOME 127 144
INTEREST EXPENSE 46,834 38,404
GAIN ON RETIREMENT OF
DEBT 6,646 1,221
EQUITY IN INCOME OF
AFFILIATED COMPANY 5,558 3,653
OTHER EXPENSE, net 3,061 104
----- ---
Loss before (benefit
from) provision for
income taxes,
noncontrolling interest
in income of
subsidiaries and gain
(loss) from discontinued
operations (22,450) (39,729)
(BENEFIT FROM) PROVISION
FOR INCOME TAXES 3,971 7,014
----- -----
Net income (loss) from
continuing operations (26,421) (46,743)
GAIN (LOSS) FROM
DISCONTINUED OPERATIONS,
net of tax (204) (1,815)
---- ------
CONSOLIDATED NET LOSS (26,625) (48,558)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES 2,008 4,329
----- -----
CONSOLIDATED NET LOSS
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(28,633) $(52,887)
======== ========

AMOUNTS ATTRIBUTABLE TO
COMMON STOCKHOLDERS
NET LOSS FROM CONTINUING
OPERATIONS $(28,429) $(51,072)
GAIN (LOSS) FROM
DISCONTINUED OPERATIONS,
net of tax (204) (1,815)
---- ------
CONSOLIDATED NET LOSS
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(28,633) $(52,887)
======== ========

Weighted average shares
outstanding -basic (2) 51,509,239 59,465,252
Weighted average shares
outstanding -diluted
(3) 51,509,239 59,465,252

Three Months Ended December
31,
----------------------------
2010 2009
---- ----
(unaudited)
-----------
(in thousands, except per
share data)
--------------------------
PER SHARE DATA -
basic and diluted:

Net loss from
continuing
operations (basic) $(0.52) $(0.26)
Gain (loss) from
discontinued
operations, net of
tax (basic) 0.00 (0.02)
---- -----
Consolidated net
loss attributable
to common
stockholders
(basic) $(0.52) $(0.28)
====== ======

Net loss from
continuing
operations
(diluted) $(0.52) $(0.26)
Gain (loss) from
discontinued
operations, net of
tax (diluted) 0.00 (0.02)
---- -----
Consolidated net
loss attributable
to common
stockholders
(diluted) $(0.52) $(0.28)
====== ======

SELECTED OTHER DATA
Station operating
income (1) $28,022 $26,329
Station operating
income margin (%
of net revenue) 39.4% 39.1%

Station operating
income
reconciliation:

Consolidated net
loss attributable
to common
stockholders $(27,151) $(14,888)
Add back non-
station operating
income items
included in
consolidated net
loss:
Interest income (32) (44)
Interest expense 15,775 9,367
(Benefit from)
provision for
income taxes (714) (326)
Corporate selling,
general and
administrative
expenses 7,580 8,459
Stock-based
compensation 922 269
Gain on retirement
of debt (6,646) -
Equity in income of
affiliated company (1,726) (358)
Other expense, net 127 1
Depreciation and
amortization 3,244 5,208
Noncontrolling
interest in income
of subsidiaries 581 679
Impairment of long-
lived assets 36,063 16,983
(Gain) loss from
discontinued
operations, net of
tax (1) 979
Station operating
income $28,022 $26,329
======= =======

Adjusted EBITDA (4) $20,442 $17,870

Adjusted EBITDA
reconciliation:

Net loss
attributable to
common
stockholders $(27,151) $(14,888)
Interest income (32) (44)
Interest expense 15,775 9,367
(Benefit from)
provision for
income taxes (714) (326)
Depreciation and
amortization 3,244 5,208
----- -----
EBITDA $(8,878) $(683)
Stock-based
compensation 922 269
Gain on retirement
of debt (6,646) -
Equity in income of
affiliated company (1,726) (358)
Other expense, net 127 1
Noncontrolling
interest in income
of subsidiaries 581 679
Impairment of long-
lived assets 36,063 16,983
(Gain) loss from
discontinued
operations, net of
tax (1) 979
--- ---
Adjusted EBITDA $20,442 $17,870
======= =======

*Per share amounts
do not add due to
rounding.

Year Ended December 31,
-----------------------
2010 2009
---- ----
(unaudited) (audited)
----------- ---------
(in thousands, except per
share data)
--------------------------
PER SHARE DATA -
basic and diluted:

Net loss from
continuing
operations (basic) $(0.55)* $(0.86)
Gain (loss) from
discontinued
operations, net of
tax (basic) $(0.00)* (0.03)
------- -----
Consolidated net
loss attributable
to common
stockholders
(basic) $(0.56)* $(0.89)
======= ======

Net loss from
continuing
operations
(diluted) $(0.55)* $(0.86)
Gain (loss) from
discontinued
operations, net of
tax (diluted) (0.00)* (0.03)
------- -----
Consolidated net
loss attributable
to common
stockholders
(diluted) $(0.56)* $(0.89)
======= ======

SELECTED OTHER DATA
Station operating
income (1) $102,532 $105,850
Station operating
income margin (%
of net revenue) 36.6% 38.9%

Station operating
income
reconciliation:

Consolidated net
loss attributable
to common
stockholders $(28,633) $(52,887)
Add back non-
station operating
income items
included in
consolidated net
loss:
Interest income (127) (144)
Interest expense 46,834 38,404
(Benefit from)
provision for
income taxes 3,971 7,014
Corporate selling,
general and
administrative
expenses 28,117 23,492
Stock-based
compensation 5,799 1,649
Gain on retirement
of debt (6,646) (1,221)
Equity in income of
affiliated company (5,558) (3,653)
Other expense, net 3,061 104
Depreciation and
amortization 17,439 21,011
Noncontrolling
interest in income
of subsidiaries 2,008 4,329
Impairment of long-
lived assets 36,063 65,937
(Gain) loss from
discontinued
operations, net of
tax 204 1,815
Station operating
income $102,532 $105,850
======== ========

Adjusted EBITDA (4) $74,415 $82,358

Adjusted EBITDA
reconciliation:

Net loss
attributable to
common
stockholders $(28,633) $(52,887)
Interest income (127) (144)
Interest expense 46,834 38,404
(Benefit from)
provision for
income taxes 3,971 7,014
Depreciation and
amortization 17,439 21,011
------ ------
EBITDA $39,484 $13,398
Stock-based
compensation 5,799 1,649
Gain on retirement
of debt (6,646) (1,221)
Equity in income of
affiliated company (5,558) (3,653)
Other expense, net 3,061 104
Noncontrolling
interest in income
of subsidiaries 2,008 4,329
Impairment of long-
lived assets 36,063 65,937
(Gain) loss from
discontinued
operations, net of
tax 204 1,815
--- -----
Adjusted EBITDA $74,415 $82,358
======= =======

*Per share amounts
do not add due to
rounding.

December 31, December 31,
2010 2009
------------- -------------
(unaudited) (audited)
----------- ---------
(in thousands)
--------------
SELECTED BALANCE SHEET DATA:
Cash and cash equivalents $9,192 $19,963
Intangible assets, net 840,147 871,221
Total assets 999,212 1,035,542
Total debt (including
current portion) 642,222 653,534
Total liabilities 774,242 787,489
Total stockholders' equity 194,335 195,828
Redeemable noncontrolling
interests 30,635 52,225

Current Applicable
Amount Interest Rate
Outstanding (a)
------------ --------------
(in
thousands)
-----------
SELECTED LEVERAGE AND SWAP DATA:
Senior bank term debt (swap
matures June 16, 2012) (a) $25,000 11.42%
Senior bank term debt
(subject to variable rates)
(b) 321,681 7.25%
Senior bank revolving debt
(subject to variable rates)
(b) 7,000 7.25%
12 1/2%/15% senior
subordinated notes (fixed
rate) 286,794 15.00%
6 3/8% senior subordinated
notes (fixed rate) 747 6.38%
Note payable (fixed rate) 1,000 7.00%

(a) A total of $25.0 million is subject to a fixed rate swap
agreement that became effective in June 2005. Under our fixed rate
swap agreement, 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 6.25% and is incorporated into the applicable
interest rates set forth above.

(b) Subject to variable Libor Rate plus a spread currently at 6.25%
and incorporated into the applicable interest rate set forth above.
This tranche is not covered by a swap agreement described in
footnote (a).

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements represent management's current expectations and are based upon information available to 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 and 10-K/A, and 10-Q and 10-Q/A 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 increased to approximately $71.2 million for the quarter ended December 31, 2010, from approximately $67.3 million for the same period in 2009, an increase of 5.8%. Net revenues from our radio stations for the quarter ended December 31, 2010 increased 7.3% from the same period in 2009. We saw double digit percentage net revenue increases in Atlanta, Charlotte, Houston, Raleigh and St. Louis while we experienced decreases for the quarter in our Cincinnati and Cleveland markets. Reach Media experienced a net revenue decline of 5.3% for the quarter over the same period in 2009 and our internet business also experienced a decline of 8.0% for the same period.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets increased to approximately $50.8 million from approximately $49.4 million for the quarters ended December 31, 2010 and 2009, respectively, an increase of 2.8%. Similar to the quarter ended September 30, 2010, the spending increases continue to occur in selling, general and administrative departments. Our radio division drove most of the increased spending, with additional salaries for sales new hires and higher revenue variable expenses such as commissions, bonuses and national representation fees.

Stock-based compensation increased to $922,000 for the quarter ended December 31, 2010, compared to $269,000 for the same period in 2009, an increase of 242.8%. Increased stock-based compensation expense was due to a long-term incentive plan whereby officers and certain key employees were granted a total of 3,250,000 shares of restricted stock in January 2010. Stock-based compensation requires measurement of compensation costs for all stock-based awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest.

Depreciation and amortization expense decreased to approximately $3.2 million compared to approximately $5.2 million for the quarters ended December 31, 2010 and 2009, respectively, a decrease of 38.5%. The decrease is attributable to the completion of amortization for certain intangible assets and the completion of useful lives for certain assets.

Impairment of long-lived assets for the quarter ended December 31, 2010 increased to approximately $36.1 million, compared to approximately $17.0 million for the same period in 2009, an increase of 112.4%. Our annual impairment testing resulted in a non-cash charge to radio broadcasting licenses in Philadelphia and our year end impairment testing resulted in a non-cash charge associated with Reach Media goodwill.

Interest expense increased to approximately $15.8 million for the quarter ended December 31, 2010, from approximately $9.4 million for the same period in 2009, an increase of 68.1%. The increase in interest expense for the three months ended December 31, 2010 was due primarily to higher interest rates that took effect as a result of both entering into the third amendment to our Credit Agreement in March of 2010 as well as defaults under our credit agreement that occurred as of each of June 30, 2010, July 1, 2010 and September 30, 2010. In addition, as a result of our entry into our Amended and Restated Credit Agreement and Amended Exchange Offer on November 24, 2010, higher interest rates were in effect for the last month of the year.

As there were no early bond redemptions for the quarter ended December 31 2009, there was no gain on retirement of debt to report for the quarter, compared to a gain of approximately $6.6 million for the same period in 2010. The fourth quarter 2010 net gain on retirement of debt was due to the early redemption of the Company's outstanding 6 3/8% Senior Subordinated Notes due 2013 at a discount. This amount was offset by a write-off of approximately $3.3 million of debt costs associated with the 2011 and 2013 Notes. A principal amount of $747,000 remained outstanding as of December 31, 2010 for the 2013 notes.

Equity in income of affiliated company increased to approximately $1.7 million for the quarter ended December 31, 2010, compared to $358,000 for the same period in 2009, an increase of 374.9%. The amounts are attributable primarily to additional net income generated by TV One, LLC for the fourth quarter of 2010 versus the comparable period in 2009. The Company's share of the net income is driven by TV One's current capital structure and the Company's percentage ownership of the equity securities of TV One.

Income taxes for the quarter ended December 31, 2010 was a benefit of $714,000, compared to a benefit of approximately $326,000 for the same quarter in 2009. The tax benefit for both fourth quarter 2010 and 2009 relates mostly to the impairment charges for indefinite-lived intangibles recorded in that quarter, which had the impact of reducing the Company's deferred tax liability.

Income from discontinued operations, net of tax, was $1,000 for the quarter ended December 31, 2010, compared to a loss from discontinued operations, net of tax, of $979,000 for the same period in 2009. The loss from discontinued operations, net of tax, for the quarter ended December 31, 2009 is primarily driven by Giant Magazine's financial results, which included a write off of $416,000 of certain acquisition assets associated with the magazine.

Other pertinent financial information includes capital expenditures of approximately $937,000 and $1.2 million for the quarters ended December 31, 2010 and 2009, respectively. In addition, as of December 31, 2010, Radio One had total debt (net of cash balances) of approximately $633.0 million.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three months and year ended December 31, 2010 and 2009 are included.

Three Months Ended December 31, 2010
------------------------------------
(in thousands, unaudited)
-------------------------

Reach
Consolidated Radio One Media
------------ --------- -----

STATEMENT OF
OPERATIONS:

NET REVENUE 71,203 $59,924 $9,250
OPERATING
EXPENSES:
Programming
and
technical 18,308 12,907 4,787
Selling,
general and
administrative 24,873 21,309 1,374
Corporate
selling,
general and
administrative 7,580 - 1,310
Stock-based
compensation 922 137 -
Depreciation
and
amortization 3,244 804 1,089
Impairment
of long-
lived
assets 36,063 19,949 16,114
------ ------ ------
Total
operating
expenses 90,990 55,106 24,674
------ ------ ------
Operating
(loss)
income (19,787) 4,818 (15,424)
INTEREST
INCOME 32 - 20
INTEREST
EXPENSE 15,775 - 23
GAIN ON
RETIREMENT
OF DEBT 6,646 - -
EQUITY IN
INCOME OF
AFFILIATED
COMPANY 1,726 - -
OTHER
EXPENSE
(INCOME),
net 127 148 -
--- --- ---
(Loss)
income
before
(benefit
from)
provision
for income
taxes,
noncontrolling
interest in
income of
subsidiaries
and gain
(loss) from
discontinued
operations (27,285) 4,670 (15,427)
(BENEFIT
FROM)
PROVISION
FOR INCOME
TAXES (714) (788) 74
---- ---- ---
Net (loss)
income from
continuing
operations (26,571) 5,458 (15,501)
GAIN
(INCOME)
FROM
DISCONTINUED
OPERATIONS,
net of tax 1 2 -
--- --- ---
CONSOLIDATED
NET (LOSS)
INCOME (26,570) 5,460 (15,501)
NONCONTROLLING
INTEREST IN
INCOME OF
SUBSIDIARIES 581 - -
--- --- ---
CONSOLIDATED
NET (LOSS)
INCOME
ATTRIBUTABLE
TO COMMON
STOCKHOLDERS (27,151) $5,460 $(15,501)
======= ====== ========

Three Months Ended December 31, 2010
------------------------------------
(in thousands, unaudited)
-------------------------

Corporate/

Eliminations/
Internet Other
-------- -----

STATEMENT OF OPERATIONS:

NET REVENUE $3,697 $(1,668)
OPERATING EXPENSES:
Programming and
technical 2,353 (1,739)
Selling, general and
administrative 2,560 (370)
Corporate selling,
general and
administrative - 6,270
Stock-based
compensation 24 761
Depreciation and
amortization 1,089 262
Impairment of long-
lived assets - -
Total operating expenses 6,026 5,184
----- -----
Operating (loss) income (2,329) (6,852)
INTEREST INCOME - 12
INTEREST EXPENSE - 15,752
GAIN ON RETIREMENT OF
DEBT - 6,646
EQUITY IN INCOME OF
AFFILIATED COMPANY - 1,726
OTHER EXPENSE (INCOME),
net (27) 6
--- ---
(Loss) income before
(benefit from)
provision for income
taxes, noncontrolling
interest in income of
subsidiaries and gain
(loss) from
discontinued operations (2,302) (14,226)
(BENEFIT FROM) PROVISION
FOR INCOME TAXES - -
--- ---
Net (loss) income from
continuing operations (2,302) (14,226)
GAIN (INCOME) FROM
DISCONTINUED
OPERATIONS, net of tax (1) -
--- ---
CONSOLIDATED NET (LOSS)
INCOME (2,303) (14,226)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES - 581
CONSOLIDATED NET (LOSS)
INCOME ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(2,303) $(14,807)
======= ========

Three Months Ended December 31, 2009
------------------------------------
(in thousands, unaudited)
-------------------------

Reach

Consolidated Radio One Media
------------ --------- -----

STATEMENT OF
OPERATIONS:

NET REVENUE $67,258 $55,435 $9,770
OPERATING
EXPENSES:
Programming
and
technical 18,778 12,789 4,854
Selling,
general and
administrative 22,151 18,242 1,103
Corporate
selling,
general and
administrative 8,459 - 1,831
Stock-based
compensation 269 44 -
Depreciation
and
amortization 5,208 2,275 988
Impairment
of long-
lived
assets 16,983 16,983 -
Total
operating
expenses 71,848 50,333 8,776
------ ------ -----
Operating
(loss)
income (4,590) 5,102 994
INTEREST
INCOME 44 - 34
INTEREST
EXPENSE 9,367 - 10
EQUITY IN
INCOME OF
AFFILIATED
COMPANY 358 - -
OTHER
EXPENSE
(INCOME),
net 1 (1) -
--- --- ---
(Loss)
income
before
(benefit
from)
provision
for income
taxes,
noncontrolling
interest in
income of
subsidiaries
and loss
from
discontinued
operations (13,556) 5,103 1,018
(BENEFIT
FROM)
PROVISION
FOR INCOME
TAXES (326) (670) 344
---- ---- ---
Net (loss)
income from
continuing
operations (13,230) 5,773 674
LOSS FROM
DISCONTINUED
OPERATIONS,
net of tax (979) (138) -
---- ---- ---
CONSOLIDATED
NET (LOSS)
INCOME (14,209) 5,635 674
NONCONTROLLING
INTEREST IN
INCOME OF
SUBSIDIARIES 679 - -
CONSOLIDATED
NET (LOSS)
INCOME
ATTRIBUTABLE
TO COMMON
STOCKHOLDERS $(14,888) $5,635 $674
======== ====== ====

Three Months Ended December 31, 2009
------------------------------------
(in thousands, unaudited)
-------------------------

Corporate/

Eliminations/

Internet Other
-------- -----

STATEMENT OF OPERATIONS:

NET REVENUE $4,017 $(1,964)
OPERATING EXPENSES:
Programming and
technical 2,101 (966)
Selling, general and
administrative 4,778 (1,972)
Corporate selling,
general and
administrative - 6,628
Stock-based
compensation - 225
Depreciation and
amortization 1,625 320
Impairment of long-
lived assets - -
Total operating expenses 8,504 4,235
----- -----
Operating (loss) income (4,487) (6,199)
INTEREST INCOME - 10
INTEREST EXPENSE - 9,357
EQUITY IN INCOME OF
AFFILIATED COMPANY - 358
OTHER EXPENSE (INCOME),
net 2 -
--- ---
(Loss) income before
(benefit from)
provision for income
taxes, noncontrolling
interest in income of
subsidiaries and loss
from discontinued
operations (4,489) (15,188)
(BENEFIT FROM) PROVISION
FOR INCOME TAXES - -
--- ---
Net (loss) income from
continuing operations (4,489) (15,188)
LOSS FROM DISCONTINUED
OPERATIONS, net of tax (423) (418)
---- ----
CONSOLIDATED NET (LOSS)
INCOME (4,912) (15,606)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES - 679
CONSOLIDATED NET (LOSS)
INCOME ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(4,912) $(16,285)
======= ========

Year Ended December 31, 2010
----------------------------
(in thousands, unaudited)
-------------------------

Reach

Consolidated Radio One Media
------------ --------- -----

STATEMENT
OF
OPERATIONS:

NET REVENUE $279,906 $229,500 $41,773
OPERATING
EXPENSES:
Programming
and
technical 75,044 52,091 19,888
Selling,
general
and
administrative 102,330 83,175 8,786
Corporate
selling,
general
and
administrative 28,117 - 6,143
Stock-
based
compensation 5,799 834 -
Depreciation
and
amortization 17,439 7,134 4,249
Impairment
of long-
lived
assets 36,063 19,949 16,114
------ ------ ------
Total
operating
expenses 264,792 163,183 55,180
------- ------- ------
Operating
income
(loss) 15,114 66,317 (13,407)
INTEREST
INCOME 127 - 71
INTEREST
EXPENSE 46,834 - 78
GAIN ON
RETIREMENT
OF DEBT 6,646 - -
EQUITY IN
INCOME OF
AFFILIATED
COMPANY 5,558 - -
OTHER
EXPENSE
(INCOME),
net 3,061 (84) -
----- --- ---
(Loss)
income
before
provision
for income
taxes,
noncontrolling
interest
in income
of
subsidiaries
and (loss)
gain from
discontinued
operations (22,450) 66,401 (13,414)
PROVISION
FOR INCOME
TAXES 3,971 3,137 834
----- ----- ---
Net (loss)
income
from
continuing
operations (26,421) 63,264 (14,248)
(LOSS)
INCOME
FROM
DISCONTINUED
OPERATIONS,
net of tax (204) (465) -
---- ---- ---
CONSOLIDATED
NET (LOSS)
INCOME (26,625) 62,799 (14,248)
NONCONTROLLING
INTEREST
IN INCOME
OF
SUBSIDIARIES 2,008 - -
NET (LOSS)
INCOME
ATTRIBUTABLE
TO COMMON
STOCKHOLDERS $(28,633) $62,799 $(14,248)
======== ======= ========

Year Ended December 31, 2010
----------------------------
(in thousands, unaudited)
-------------------------

Corporate/

Eliminations/

Internet Other
-------- -----

STATEMENT OF OPERATIONS:

NET REVENUE $16,027 $(7,394)
OPERATING EXPENSES:
Programming and
technical 9,514 (6,449)
Selling, general and
administrative 13,063 (2,694)
Corporate selling,
general and
administrative - 21,974
Stock-based
compensation 160 4,805
Depreciation and
amortization 4,942 1,114
Impairment of long-
lived assets - -
--- ---
Total operating expenses 27,679 18,750
------ ------
Operating income (loss) (11,652) (26,144)
INTEREST INCOME - 56
INTEREST EXPENSE - 46,756
GAIN ON RETIREMENT OF
DEBT - 6,646
EQUITY IN INCOME OF
AFFILIATED COMPANY - 5,558
OTHER EXPENSE (INCOME),
net 133 3,012
--- -----
(Loss) income before
provision for income
taxes, noncontrolling
interest in income of
subsidiaries and (loss)
gain from discontinued
operations (11,785) (63,652)
PROVISION FOR INCOME
TAXES - -
--- ---
Net (loss) income from
continuing operations (11,785) (63,652)
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of tax 261 -
--- ---
CONSOLIDATED NET (LOSS)
INCOME (11,524) (63,652)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES - 2,008
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(11,524) $(65,660)
======== ========

Year Ended December 31, 2009
----------------------------
(in thousands, unaudited)
-------------------------

Reach

Radio
Consolidated One Media
------------ ------ -----

STATEMENT OF
OPERATIONS:

NET REVENUE $272,092 $218,233 $45,825
OPERATING
EXPENSES:
Programming
and technical 75,547 51,993 18,959
Selling,
general and
administrative 90,695 73,349 6,903
Corporate
selling,
general and
administrative 23,492 - 6,164
Stock-based
compensation 1,649 409 -
Depreciation
and
amortization 21,011 9,430 3,934
Impairment of
long-lived
assets 65,937 65,937 -
------ ------ ---
Total
operating
expenses 278,331 201,118 35,960
------- ------- ------
Operating
(loss) income (6,239) 17,115 9,865
INTEREST
INCOME 144 - 74
INTEREST
EXPENSE 38,404 - 11
GAIN ON
RETIREMENT OF
DEBT 1,221 - -
EQUITY IN
INCOME OF
AFFILIATED
COMPANY 3,653 - -
OTHER EXPENSE
(INCOME), net 104 114 -
--- --- ---
(Loss) income
before
provision for
income taxes,
noncontrolling
interest in
income of
subsidiaries
and loss from
discontinued
operations (39,729) 17,001 9,928
PROVISION FOR
INCOME TAXES 7,014 3,520 3,494
----- ----- -----
Net (loss)
income from
continuing
operations (46,743) 13,481 6,434
LOSS FROM
DISCONTINUED
OPERATIONS,
net of tax (1,815) (156) -
------ ---- ---
CONSOLIDATED
NET (LOSS)
INCOME (48,558) 13,325 6,434
NONCONTROLLING
INTEREST IN
INCOME OF
SUBSIDIARIES 4,329 - -
NET (LOSS)
INCOME
ATTRIBUTABLE
TO COMMON
STOCKHOLDERS $(52,887) $13,325 $6,434
======== ======= ======

Year Ended December 31, 2009
----------------------------
(in thousands, unaudited)
-------------------------

Corporate/

Eliminations/

Internet Other
-------- -----

STATEMENT OF OPERATIONS:

NET REVENUE $14,044 $(6,010)
OPERATING EXPENSES:
Programming and technical 8,449 (3,854)
Selling, general and
administrative 14,598 (4,155)
Corporate selling, general
and administrative - 17,328
Stock-based compensation - 1,240
Depreciation and
amortization 6,408 1,239
Impairment of long-lived
assets - -
--- ---
Total operating expenses 29,455 11,798
------ ------
Operating (loss) income (15,411) (17,808)
INTEREST INCOME - 70
INTEREST EXPENSE 3 38,390
GAIN ON RETIREMENT OF DEBT - 1,221
EQUITY IN INCOME OF
AFFILIATED COMPANY - 3,653
OTHER EXPENSE (INCOME),
net (36) 26
--- ---
(Loss) income before
provision for income
taxes, noncontrolling
interest in income of
subsidiaries and loss
from discontinued
operations (15,378) (51,280)
PROVISION FOR INCOME TAXES - -
--- ---
Net (loss) income from
continuing operations (15,378) (51,280)
LOSS FROM DISCONTINUED
OPERATIONS, net of tax (1,537) (122)
------ ----
CONSOLIDATED NET (LOSS)
INCOME (16,915) (51,402)
NONCONTROLLING INTEREST IN
INCOME OF SUBSIDIARIES - 4,329
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(16,915) $(55,731)
======== ========

Radio One, Inc. will hold a conference call to discuss its results for the fourth quarter 2010, as well as full year 2010. This conference call is scheduled for Thursday, March 3, 2011 at 10:00 a.m. Eastern Standard Time. To participate on this call, U.S. callers may dial toll free 1-800-230-1074; international callers may dial direct (+1) 612-332-0226.

A replay of the conference call will be available from 12:30 p.m. Eastern Daylight Time March 03, 2011 until 11:59 p.m. March 06, 2011. 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 193396. Access to live audio and a replay of the conference call will also be available on Radio One's corporate website at http://www.radio-one.com/. The replay will be made available on the website for seven days after the call.

Radio One, Inc. (www.radio-one.com) is a diversified media company that primarily targets African-American and urban consumers. The Company is one of the nation's largest radio broadcasting companies, currently owning 53 broadcast stations located in 16 urban markets in the United States. As a part of its core broadcasting business, Radio One operates syndicated programming including the Russ Parr Morning Show, the Yolanda Adams Morning Show, the Rickey Smiley Morning Show, CoCo Brother Live, CoCo Brother's "Spirit" program, Bishop T.D. Jakes' "Empowering Moments", the Reverend Al Sharpton Show, and the Warren Ballentine Show. The Company also owns a controlling interest in Reach Media, Inc. (www.blackamericaweb.com), owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner. Beyond its core radio broadcasting business, Radio One owns Interactive One (www.interactiveone.com), an online platform serving the African-American community through social content, news, information, and entertainment, which operates a number of branded sites, including News One, UrbanDaily, HelloBeautiful, Community Connect Inc. (www.communityconnect.com), an online social networking company, which operates a number of branded websites, including BlackPlanet, MiGente, and Asian Avenue and an interest in TV One, LLC (www.tvoneonline.com), a cable/satellite network programming primarily to African-Americans.

Notes:

(1) "Station operating income" consists of net loss before depreciation and amortization, corporate expenses, stock-based compensation, equity in (income) loss of affiliated company, income taxes, noncontrolling interest in income of subsidiaries, interest expense, impairment of long-lived assets, other expense, gain on retirement of debt, (income) loss from discontinued operations, net of tax, and interest income. Station operating income is not a measure of financial performance under generally accepted accounting principles. Nevertheless we believe station operating income is often a useful measure of a broadcasting company's operating performance and is a significant basis used by our management to measure the operating performance of our stations within the various markets because station operating income provides helpful information about our results of operations apart from expenses associated with our physical plant, income taxes, investments, debt financings and retirements, overhead, stock-based compensation, impairment charges, and asset sales. Station operating income is frequently used as one of the bases for comparing businesses in our industry, although our measure of station operating income may not be comparable to similarly titled measures of other companies. Station operating income does not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as an alternative to those measurements as an indicator of our performance. A reconciliation of net loss to station operating income has been provided in this release.

(2) For the quarter ended December 31, 2010 and 2009, Radio One had 52,087,460 and 52,735,892 shares of common stock outstanding on a weighted average basis, diluted for outstanding stock options, respectively.

(3) For the year ended December 31, 2010 and 2009, Radio One had 51,509,239 and 59,465,252 shares of common stock outstanding on a weighted average basis, diluted for outstanding stock options, respectively.

(4) "Adjusted EBITDA" consists of net loss plus (1) depreciation, amortization, income taxes, interest expense, equity in (income) loss of affiliated company, noncontrolling interest in income of subsidiaries, impairment of long-lived assets, stock-based compensation, other expense, (income) loss from discontinued operations, net of tax, less (2) interest income and gain on retirement of debt. 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. We believe Adjusted EBITDA is often a useful measure of a company's operating performance and is a significant basis used by our management to measure the operating performance of our business because Adjusted EBITDA excludes charges for depreciation, amortization and interest expense that have resulted from our acquisitions and debt financing, our taxes, impairment charges, as well as our equity in (income) loss of our affiliated company, gain on retirements of debt, and any discontinued operations. Accordingly, we believe that Adjusted EBITDA provides useful information about the operating performance of our business, apart from the expenses associated with our physical plant, capital structure or the results of our affiliated company. Adjusted EBITDA is frequently used as one of the bases for comparing businesses in our industry, although our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA and EBITDA do not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as alternatives to those measurements as an indicator of our performance. A reconciliation of net loss to EBITDA and Adjusted EBITDA has been provided in this release.

SOURCE Radio One, Inc.

Photo:http://photos.prnewswire.com/prnh/20090806/PH57529LOGO
http://photoarchive.ap.org/
Radio One, Inc.

CONTACT: Peter D. Thompson, EVP and CFO, +1-301-429-4638

Web Site: http://www.radio-one.com

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Profile: intent