Radio One, Inc. Reports Third Quarter Results

Radio One, Inc. Reports Third Quarter Results

WASHINGTON, Nov. 5, 2015 /PRNewswire/ -- Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended September 30, 2015. Net revenue was approximately $115.9 million, an increase of 3.3% from the same period in 2014, reflecting greater advertising demand and an increase in affiliate revenue at our cable television segment. Station operating income(1) was approximately $42.2 million, an increase of 9.2% from the same period in 2014. The Company reported operating income of approximately $7.1 million for the three months ended September 30, 2015, compared to operating income of $19.6 million for the same period in 2014. Net loss was approximately $18.1 million or $0.38 per share compared to $13.2 million or $0.28 per share, for the same period in 2014.

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Alfred C. Liggins, III, Radio One's CEO and President stated, "Continuing strong performances by TV One and Reach Media more than offset the revenue declines from our Radio business. Radio continues to be a challenging business, with the markets in which we operate down 2.2% for the quarter, compared to our -6.6%. We are seeing some signs of stabilization in our Washington DC and Houston clusters, as well as strong performances from Dallas, Philadelphia and St Louis. During the quarter we experienced double-digit ratings growth in 11 of our 15 markets, and our four largest markets showed ratings growth of 15% on average from July to September. This positive ratings momentum should lead to improved monetization in 2016. Fourth quarter core radio advertising revenues, excluding political advertising, are currently pacing (-8.3%) YTY. We remain focused on correcting our underperforming radio clusters, while delivering increased cash-flow through overall cost containment, and revenue growth in the cable television business. I am excited that David Kantor has accepted the role as CEO of our radio platform, including our local stations, network and syndication business. Bringing together all of our radio assets under one leadership structure will enhance our ability to compete and transform our business for the future."





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


Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------

2015 2014 2015 2014
---- ---- ---- ----

STATEMENT OF OPERATIONS (unaudited) (unaudited)
---------- ----------

(in thousands, except share data) (in thousands, except share data)
-------------------------------- --------------------------------


NET REVENUE $115,893 $112,171 $341,477 $331,657

OPERATING EXPENSES

Programming and technical, excluding stock-based compensation 32,785 36,520 98,667 105,712

Selling, general and administrative, excluding stock-based compensation 40,922 37,006 116,813 111,064

Corporate selling, general and administrative, excluding stock-based compensation 11,256 9,845 33,840 29,284

Stock-based compensation 1,016 61 3,795 171

Depreciation and amortization 8,277 9,179 26,345 27,685

Impairment of long-lived assets 14,545 - 14,545 -
------

Total operating expenses 108,801 92,611 294,005 273,916
-------

Operating income 7,092 19,560 47,472 57,741

INTEREST INCOME 33 40 68 174

INTEREST EXPENSE 20,356 19,350 59,620 60,468

LOSS ON RETIREMENT OF DEBT - - 7,091 5,679

OTHER (INCOME) EXPENSE, net (39) (29) 246 16
----

(Loss) income before provision for income taxes and noncontrolling interest in income of subsidiaries (13,192) 279 (19,417) (8,248)

PROVISION FOR INCOME TAXES 4,439 9,037 22,911 26,220
-----

CONSOLIDATED NET LOSS (17,631) (8,758) (42,328) (34,468)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 514 4,462 7,345 14,751
---

CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $(18,145) $(13,220) $(49,673) $(49,219)
=========


AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS

CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $(18,145) $(13,220) $(49,673) $(49,219)
=========


Weighted average shares outstanding - basic(2) 48,220,262 47,601,371 47,963,763 47,502,733
==========

Weighted average shares outstanding - diluted(3) 48,220,262 47,601,371 47,963,763 47,502,733
==========








Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------

2015 2014 2015 2014
---- ---- ---- ----

PER SHARE DATA - basic and diluted: (unaudited) (unaudited)
---------- ----------

(in thousands, except per share data) (in thousands, except per share data)
------------------------------------ ------------------------------------


Consolidated net loss attributable to common $(0.38) $(0.28) $(1.04) $(1.04)
stockholders (basic and diluted)



SELECTED OTHER DATA

Station operating income (1) $42,186 $38,645 $125,997 $114,881

Station operating income margin (% of net revenue) 36.4% 34.5% 36.9% 34.6%


Station operating income reconciliation:


Consolidated net loss attributable to common $(18,145) $(13,220) $(49,673) $(49,219)
stockholders


Add back non-station operating income items
included in consolidated net loss:

Interest income (33) (40) (68) (174)

Interest expense 20,356 19,350 59,620 60,468

Provision for income taxes 4,439 9,037 22,911 26,220

Corporate selling, general and administrative 11,256 9,845 33,840 29,284
expenses

Stock-based compensation 1,016 61 3,795 171

Loss on retirement of debt - - 7,091 5,679

Other (income) expense, net (39) (29) 246 16

Depreciation and amortization 8,277 9,179 26,345 27,685

Noncontrolling interest in income of subsidiaries 514 4,462 7,345 14,751

Impairment of long-lived assets 14,545 - 14,545 -

Station operating income $42,186 $38,645 $125,997 $114,881
======= ======= ======== ========


Adjusted EBITDA4 $31,891 $29,346 $94,580 $87,834


Adjusted EBITDA reconciliation:


Consolidated net loss attributable to common $(18,145) $(13,220) $(49,673) $(49,219)
stockholders

Interest income (33) (40) (68) (174)

Interest expense 20,356 19,350 59,620 60,468

Provision for income taxes 4,439 9,037 22,911 26,220

Depreciation and amortization 8,277 9,179 26,345 27,685
----- ----- ------ ------

EBITDA $14,894 $24,306 $59,135 $64,980

Stock-based compensation 1,016 61 3,795 171

Loss on retirement of debt - - 7,091 5,679

Other (income) expense, net (39) (29) 246 16

Noncontrolling interest in income of subsidiaries 514 4,462 7,345 14,751

Employment Agreement Award and incentive plan 961 546 2,423 2,237
award expenses*

Impairment of long-lived assets 14,545 - 14,545 -
------ --- ------ ---

Adjusted EBITDA $31,891 $29,346 $94,580 $87,834
======= ======= ======= =======


*The Company modified the definition of Adjusted EBITDA during 2014 for the inclusion of Employment Agreement Award and incentive plan award expenses. All prior periods have been reclassified to conform to current period presentation.







September 30, 2015 December 31, 2014
------------------ -----------------

(unaudited)
----------

(in thousands)
-------------

SELECTED BALANCE SHEET DATA:

Cash and cash equivalents $59,158 $67,781

Intangible assets, net 1,076,756 1,112,443

Total assets 1,363,288 1,391,694

Total debt (including current portion, net of original issue discount and issuance
costs) 1,023,947 813,444

Total liabilities 1,400,188 1,160,286

Total (deficit) equity (47,625) 220,572

Redeemable noncontrolling interest 10,725 10,836

Noncontrolling interest 848 201,674


Current Amount Outstanding Applicable Interest Rate
-------------------------- ------------------------

(in thousands)
-------------

SELECTED LEVERAGE DATA:

2015 Credit Facility, net of original issue discount and issuance costs of approximately
$12.8 million (subject to variable rates) (a) $336,315 4.83%

9.25% senior subordinated notes due February 2020, net of original issue discount and
issuance costs of approximately $3.4 million (fixed rate) 331,602 9.25%

7.375% senior secured notes due April 2022, net of original issue discount and issuance
costs of approximately $5.8 million (fixed rate) 344,158 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 September 30,
--------------------------------

2015 2014 $ Change % Change
---- ---- -------- --------

(Unaudited)


Net Revenue:

Radio Advertising $55,579 $60,197 $(4,618) -7.7%

Political Advertising 413 461 (48) -10.4%

Digital Advertising 6,857 7,130 (273) -3.8%

Cable Television Advertising 22,069 19,481 2,588 13.3%

Cable Television Affiliate Fees 25,502 19,942 5,560 27.9%

Event Revenues & Other 5,473 4,960 513 10.3%


Net Revenue (as reported) $115,893 $112,171 $3,722 3.3%
======== ======== ====== ===


Net revenue increased to approximately $115.9 million for the quarter ended September 30, 2015, from approximately $112.2 million for the same period in 2014, an increase of 3.3%, resulting primarily from greater advertising demand and an increase in affiliate revenue at our cable television segment. Net revenues from our radio broadcasting segment decreased 6.6% for the quarter ended September 30, 2015, from the same period in 2014. We experienced net revenue growth in certain markets (most significantly in our Cleveland, Dallas, Philadelphia, and St. Louis markets); however, this growth was offset by declines in other markets (with our Atlanta, Baltimore, Detroit, Columbus, Houston, Indianapolis, and Washington D.C. markets experiencing the most significant declines). Reach Media's net revenues decreased slightly by $132,000 or 1.0% in the third quarter 2015, compared to the same period in 2014. We recognized approximately $47.6 million of revenue from our cable television segment during the three months ended September 30, 2015, compared to approximately $39.5 million for the same period in 2014, the increase due primarily from greater advertising demand and an increase in affiliate sales. Finally, net revenues for our internet business decreased 5.5% for the three months ended September 30, 2015, compared to the same period in 2014 due to a decline in alliance revenue.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $85.0 million for the quarter ended September 30, 2015, up 1.9% from the approximately $83.4 million incurred for the comparable quarter in 2014.

Depreciation and amortization expense decreased to approximately $8.3 million compared to approximately $9.2 million for the quarters ended September 30, 2015 and 2014, respectively, a decrease of 9.8%. The decrease was due to the completion of useful lives for certain assets.

During the quarter ended September 30, 2015, the Company identified a triggering event to perform a goodwill interim impairment analysis on the Interactive One reporting unit. Based on preliminary calculations, the Company recorded an estimated goodwill impairment charge related to Interactive One of approximately $14.5 million during the quarter ended September 30, 2015. The Company expects to finalize the step two impairment analysis and record any adjustments to the preliminary amount during the fourth quarter of 2015.

Interest expense increased to approximately $20.4 million for the quarter ended September 30, 2015, compared to approximately $19.4 million for the same period in 2014. On April 17, 2015, the Company's 2011 Credit Agreement, as amended, 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. The Company made cash interest payments of approximately $23.8 million on all outstanding instruments for the quarter ended September 30, 2015, compared to cash interest payments of approximately $26.3 million on all outstanding instruments for the quarter ended September 30, 2014.

The provision for income taxes for the quarter ended September 30, 2015, was approximately $4.4 million compared to approximately $9.0 million for the comparable period in 2014, a decrease of approximately $4.6 million. The decrease was primarily attributable to the reduction in tax amortization from previously acquired indefinite-lived intangible assets and due to provision to return adjustments from the 2014 income tax returns. The Company paid $3,000 and $117,000 in taxes for the quarters ended September 30, 2015 and 2014, respectively.

The decrease in noncontrolling interests in income of subsidiaries is due primarily to a change in ownership percentage of TV One.

Other pertinent financial information includes capital expenditures of approximately $1.5 million and $1.3 million for the quarters ended September 30, 2015 and 2014, respectively. The Company received dividends from TV One in the amount of approximately $0 and $8.9 million for the quarters ended September 30, 2015 and 2014, respectively. The Company received dividends from Reach Media in the amount of approximately $4.0 million for the quarter ended September 30, 2015 and did not receive a dividend for the quarter ended September 30, 2014. As of September 30, 2015, the Company had total debt (net of cash balances, original issue discount and issuance costs) of approximately $964.8 million. During the nine months ended September 30, 2015, the Company repurchased 345,293 shares of Class D common stock, granted to certain employees, in the amount of approximately $1.4 million. The Company, as part of its 2009 stock plan, is authorized to purchase shares of Class D common stock to satisfy employee's tax obligations in connection with the vesting of share grants under the plan. There were no stock repurchases made during the three month period ended September 30, 2015, or during the three and nine month periods ended September 30, 2014.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three and nine months ended September 30, 2015 and 2014 are included.





Three Months Ended September 30, 2015
-------------------------------------

(in thousands, unaudited)
------------------------


Corporate/

Radio Reach Cable Eliminations/

Consolidated Broadcasting Media Internet Television Other
------------ ------------ ----- -------- ---------- -----


STATEMENT OF OPERATIONS:


NET REVENUE $115,893 $50,880 $13,486 $5,503 $47,571 $(1,547)

OPERATING EXPENSES:

Programming and technical 32,785 10,199 5,729 1,955 16,089 (1,187)

Selling, general and administrative 40,922 21,109 4,518 3,457 12,819 (981)

Corporate selling, general and
administrative 11,256 - 814 - 3,079 7,363

Stock-based compensation 1,016 67 - 15 - 934

Depreciation and amortization 8,277 1,145 (394) 446 6,554 526

Impairment of long-lived assets 14,545 - - 14,545 - -


Total operating expenses 108,801 32,520 10,667 20,418 38,541 6,655


Operating income (loss) 7,092 18,360 2,819 (14,915) 9,030 (8,202)

INTEREST INCOME 33 - - - - 33

INTEREST EXPENSE 20,356 305 - - 1,919 18,132

OTHER INCOME, net (39) (3) - - - (36)


(Loss) income before
provision for income
taxes and noncontrolling
interest in income of
subsidiaries (13,192) 18,058 2,819 (14,915) 7,111 (26,265)

PROVISION FOR INCOME TAXES 4,439 4,385 54 - - -


CONSOLIDATED NET (LOSS) INCOME (17,631) 13,673 2,765 (14,915) 7,111 (26,265)

NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 514 - - - - 514

NET (LOSS) INCOME ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(18,145) $13,673 $2,765 $(14,915) $7,111 $(26,779)



Adjusted EBITDA4 $31,891 $19,572 $2,425 $91 $15,663 $(5,860)








Three Months Ended September 30, 2014
-------------------------------------

(in thousands, unaudited)
------------------------


Corporate/

Radio Reach Cable Eliminations/

Consolidated Broadcasting Media Internet Television Other
------------ ------------ ----- -------- ---------- -----


STATEMENT OF OPERATIONS:


NET REVENUE $112,171 $54,498 $13,618 $5,822 $39,488 $(1,255)

OPERATING EXPENSES:

Programming and technical 36,520 11,185 8,018 2,239 16,565 (1,487)

Selling, general and administrative 37,006 21,288 4,088 3,133 8,947 (450)

Corporate selling, general and
administrative 9,845 - 1,200 - 1,583 7,062

Stock-based compensation 61 5 - - - 56

Depreciation and amortization 9,179 1,241 285 598 6,523 532


Total operating expenses 92,611 33,719 13,591 5,970 33,618 5,713


Operating income (loss) 19,560 20,779 27 (148) 5,870 (6,968)

INTEREST INCOME 40 - - - 13 27

INTEREST EXPENSE 19,350 255 - - 3,039 16,056

OTHER INCOME, net (29) - - - - (29)


Income (loss) before
provision for income
taxes and noncontrolling
interest in income of
subsidiaries 279 20,524 27 (148) 2,844 (22,968)

PROVISION FOR INCOME TAXES 9,037 9,014 23 - - -


CONSOLIDATED NET (LOSS) INCOME (8,758) 11,510 4 (148) 2,844 (22,968)

NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 4,462 - - - - 4,462

NET (LOSS) INCOME ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(13,220) $11,510 $4 $(148) $2,844 $(27,430)



Adjusted EBITDA4 $29,346 $22,025 $312 $450 $12,393 $(5,834)








Nine Months Ended September 30, 2015
------------------------------------

(in thousands, unaudited)
------------------------


Corporate/

Radio Reach Cable Eliminations/

Consolidated Broadcasting Media Internet Television Other
------------ ------------ ----- -------- ---------- -----


STATEMENT OF OPERATIONS:


NET REVENUE $341,477 $149,093 $42,508 $15,763 $138,898 $(4,785)

OPERATING EXPENSES:

Programming and technical 98,667 30,645 17,000 6,255 48,270 (3,503)

Selling, general and administrative 116,813 64,446 15,910 10,034 29,563 (3,140)

Corporate selling, general and
administrative 33,840 - 3,131 - 9,515 21,194

Stock-based compensation 3,795 206 - 53 - 3,536

Depreciation and amortization 26,345 3,469 137 1,559 19,600 1,580

Impairment of long-lived assets 14,545 - - 14,545 - -


Total operating expenses 294,005 98,766 36,178 32,446 106,948 19,667


Operating income (loss) 47,472 50,327 6,330 (16,683) 31,950 (24,452)

INTEREST INCOME 68 - - - (93) 161

INTEREST EXPENSE 59,620 915 - - 7,212 51,493

LOSS ON RETIREMENT OF DEBT 7,091 - - - - 7,091

OTHER EXPENSE, net 246 52 - - 92 102


(Loss) income before
provision for income
taxes and noncontrolling
interest in income of
subsidiaries (19,417) 49,360 6,330 (16,683) 24,553 (82,977)

PROVISION FOR INCOME TAXES 22,911 22,796 115 - - -


CONSOLIDATED NET (LOSS) INCOME (42,328) 26,564 6,215 (16,683) 24,553 (82,977)

NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 7,345 - - - - 7,345

NET (LOSS) INCOME ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(49,673) $26,564 $6,215 $(16,683) $24,553 $(90,322)



Adjusted EBITDA4 $94,580 $54,002 $6,467 $(526) $51,629 $(16,992)








Nine Months Ended September 30, 2014
------------------------------------

(in thousands, unaudited)
------------------------


Corporate/

Radio Reach Cable Eliminations/

Consolidated Broadcasting Media Internet Television Other
------------ ------------ ----- -------- ---------- -----


STATEMENT OF OPERATIONS:


NET REVENUE $331,657 $159,906 $40,433 $18,175 $117,166 $(4,023)

OPERATING EXPENSES:

Programming and technical 105,712 32,758 23,899 6,949 46,312 (4,206)

Selling, general and administrative 111,064 64,421 12,762 10,468 25,051 (1,638)

Corporate selling, general and
administrative 29,284 - 3,566 - 5,532 20,186

Stock-based compensation 171 15 - - - 156

Depreciation and amortization 27,685 3,832 862 1,830 19,597 1,564


Total operating expenses 273,916 101,026 41,089 19,247 96,492 16,062


Operating income (loss) 57,741 58,880 (656) (1,072) 20,674 (20,085)

INTEREST INCOME 174 - - - 40 134

INTEREST EXPENSE 60,468 860 - - 9,117 50,491

LOSS ON RETIREMENT OF DEBT 5,679 - - - - 5,679

OTHER EXPENSE (INCOME), net 16 (1) - - 96 (79)


(Loss) income before
provision for income
taxes and noncontrolling
interest in income of
subsidiaries (8,248) 58,021 (656) (1,072) 11,501 (76,042)

PROVISION FOR INCOME TAXES 26,220 26,174 46 - - -


CONSOLIDATED NET (LOSS) INCOME (34,468) 31,847 (702) (1,072) 11,501 (76,042)

NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 14,751 - - - - 14,751

NET (LOSS) INCOME ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(49,219) $31,847 $(702) $(1,072) $11,501 $(90,793)



Adjusted EBITDA4 $87,834 $62,727 $206 $758 $40,459 $(16,316)




Radio One, Inc. will hold a conference call to discuss its results for third fiscal quarter of 2015. The conference call is scheduled for Thursday, November 05, 2015 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-800-288-8968; international callers may dial direct (+1) 612-332-0345.

A replay of the conference call will be available from 12:00 p.m. EST November 05, 2015 until 11:59 p.m. EST November 07, 2015. 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 371635. 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 54 stations in 16 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 Yolanda Adams 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 the 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. "Station operating income" consists of net loss before depreciation and
amortization, corporate expenses, stock-based compensation, equity in
income of affiliated company, income taxes, noncontrolling interest in
income (loss) of subsidiaries, interest expense, impairment of long-lived
assets, other (income) expense, loss (gain) on retirement of debt,
(income) loss from discontinued operations, net of tax, interest income
and gain on purchase of affiliated company. Station operating income is
not a measure of financial performance under generally accepted
accounting principles. Nevertheless station operating income is a
significant basis used by our management to measure the operating
performance of our stations within the various markets because station
operating income provides helpful information about our results of
operations apart from expenses associated with our fixed assets and
long-lived intangible assets, income taxes, investments, debt financings
and retirements, overhead, stock-based compensation, impairment charges,
and asset sales. Our measure of station operating income may not be
comparable to similarly titled measures of other companies as our
definition includes the results of all four segments (Radio Broadcasting,
Reach Media, Internet and Cable Television). Station operating income
does not purport to represent operating income or cash flow from
operating activities, as those terms are defined under generally accepted
accounting principles, and should not be considered as an alternative to
those measurements as an indicator of our performance. A reconciliation
of net income (loss) to station operating income has been provided in
this release.
2. For the three months ended September 30, 2015 and 2014, Radio One had
48,220,262 and 47,601,371 shares of common stock outstanding on a
weighted average basis (basic), respectively. For the nine months ended
September 30, 2015 and 2014, Radio One had 47,963,763 and 47,502,733
shares of common stock outstanding on a weighted average basis (basic),
respectively.
3. For the three months ended September 30, 2015 and 2014, Radio One had
48,220,262 and 47,601,371 shares of common stock outstanding on a
weighted average basis (fully diluted), for outstanding stock options,
respectively. For the nine months ended September 30, 2015 and 2014,
Radio One had 47,963,763 and 47,502,733 shares of common stock
outstanding on a weighted average basis (fully diluted), for outstanding
stock options, respectively.
4. "Adjusted EBITDA" consists of net loss plus (1) depreciation,
amortization, income taxes, interest expense, noncontrolling interest in
income of subsidiaries, impairment of long-lived assets, stock-based
compensation, loss on retirement of debt, Employment Agreement and
incentive plan award expenses, loss from discontinued operations, net of
tax, less (2) equity in income of affiliated company, other income,
interest income, gain on retirement of debt and gain on purchase of
affiliated company. Net income before interest income, interest expense,
income taxes, depreciation and amortization is commonly referred to in
our business as "EBITDA." Adjusted EBITDA and EBITDA are not measures of
financial performance under generally accepted accounting principles.
However, we believe Adjusted EBITDA is often a useful measure of a
company's operating performance and is a significant basis used by our
management to measure the operating performance of our business because
Adjusted EBITDA excludes charges for depreciation, amortization and
interest expense that have resulted from our acquisitions and debt
financing, our taxes, impairment charges, as well as our equity in
(income) loss of our affiliated company, gain on retirements of debt, and
any discontinued operations. Accordingly, we believe that Adjusted EBITDA
provides useful information about the operating performance of our
business, apart from the expenses associated with our fixed assets and
long-lived intangible assets, capital structure or the results of our
affiliated company. Adjusted EBITDA is frequently used as one of the
bases for comparing businesses in our industry, although our measure of
Adjusted EBITDA may not be comparable to similarly titled measures of
other companies as our definition includes the results of all four
segments (Radio Broadcasting, Reach Media, Internet and Cable
Television). Adjusted EBITDA and EBITDA do not purport to represent
operating income or cash flow from operating activities, as those terms
are defined under generally accepted accounting principles, and should
not be considered as alternatives to those measurements as an indicator
of our performance. A reconciliation of net income (loss) to EBITDA and
Adjusted EBITDA has been provided in this release.
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SOURCE Radio One, Inc.

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Radio One, Inc.

CONTACT: Peter D. Thompson, EVP and CFO, (301) 429-4638

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


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