Radio One, Inc. Reports Fourth Quarter Results

Radio One, Inc. Reports Fourth Quarter Results

WASHINGTON, Feb. 25, 2016 /PRNewswire/ -- Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended December 31, 2015. Net revenue was approximately $109.4 million, a slight decrease of 0.3% from the same period in 2014. Station operating income(1) was approximately $41.0 million, a decrease of 3.5% from the same period in 2014. The Company reported an operating loss of approximately $11.3 million for the three months ended December 31, 2015, compared to operating income of $19.4 million for the same period in 2014. Net loss was approximately $24.3 million or $0.50 per share compared to $13.5 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, "Overall, our radio advertising revenue was down 5.2% for the final quarter of 2015. We underperformed our markets in Atlanta, Baltimore and Houston, but outperformed in Washington DC. Our audience ratings have generally shown strong growth year over year, and I anticipate that we will monetize these audience gains in 2016. While our gross cable television advertising revenues were up by 11% for the quarter, the liability incurred due to under delivery against rate card meant that overall TV advertising revenue was down by 3.5% for the quarter. This was more than offset by the 27.5% increase in cable television affiliate fees. Management remains focused on turning around underperforming radio markets and advancing our digital and cross platform sales strategies. We have had a number of significant client successes with our One Solution cross platform sales and marketing effort, and I expect that momentum to continue into 2016."



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


Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------

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

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

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


NET REVENUE $109,384 $109,730 $450,861 $441,387

OPERATING EXPENSES

Programming and technical, excluding stock-based compensation 35,743 35,977 134,410 141,689

Selling, general and administrative, excluding stock-based compensation 32,631 31,253 149,444 142,317

Corporate selling, general and administrative, excluding stock-based compensation 15,327 12,516 49,167 41,800

Stock-based compensation 1,312 1,423 5,107 1,594

Depreciation and amortization 9,010 9,137 35,355 36,822

Impairment of long-lived assets 26,666 - 41,211 -
------

Total operating expenses 120,689 90,306 414,694 364,222
-------

Operating (loss) income (11,305) 19,424 36,167 77,165

INTEREST INCOME 34 192 102 366

INTEREST EXPENSE 20,418 19,342 80,038 79,810

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

OTHER (INCOME) EXPENSE, net (30) (48) 216 (32)
----

(Loss) income before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries (31,659) 322 (51,076) (7,926)

(BENEFIT FROM) PROVISION FOR INCOME TAXES (7,853) 8,594 15,058 34,814
-------

CONSOLIDATED NET LOSS (23,806) (8,272) (66,134) (42,740)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 543 5,179 7,888 19,930
---

CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $(24,349) $(13,451) $(74,022) $(62,670)
=========


AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS

CONSOLIDATED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $(24,349) $(13,451) $(74,022) $(62,670)
=========


Weighted average shares outstanding - basic and diluted(2) 48,220,262 47,608,038 48,027,888 47,525,726
==========






Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------

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 stockholders (basic and diluted) $(0.50) $(0.28) $(1.54) $(1.32)
====== ====== ====== ======


SELECTED OTHER DATA

Station operating income (1) $41,010 $42,500 $167,007 $157,381

Station operating income margin (% of net revenue) 37.5% 38.7% 37.0% 35.7%


Station operating income reconciliation:


Consolidated net loss attributable to common stockholders $(24,349) $(13,451) $(74,022) $(62,670)

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

Interest income (34) (192) (102) (366)

Interest expense 20,418 19,342 80,038 79,810

(Benefit from) provision for income taxes (7,853) 8,594 15,058 34,814

Corporate selling, general and administrative expenses 15,327 12,516 49,167 41,800

Stock-based compensation 1,312 1,423 5,107 1,594

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

Other (income) expense, net (30) (48) 216 (32)

Depreciation and amortization 9,010 9,137 35,355 36,822

Noncontrolling interest in income of subsidiaries 543 5,179 7,888 19,930

Impairment of long-lived assets 26,666 - 41,211 -

Station operating income $41,010 $42,500 $167,007 $157,381
======= ======= ======== ========


Adjusted EBITDA(3) $28,911 $32,833 $125,470 $121,388


Adjusted EBITDA reconciliation:


Consolidated net loss attributable to common stockholders $(24,349) $(13,451) $(74,022) $(62,670)

Interest income (34) (192) (102) (366)

Interest expense 20,418 19,342 80,038 79,810

(Benefit from) provision for income taxes (7,853) 8,594 15,058 34,814

Depreciation and amortization 9,010 9,137 35,355 36,822
----- ----- ------ ------

EBITDA $(2,808) $23,430 $56,327 $88,410

Stock-based compensation 1,312 1,423 5,107 1,594

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

Other (income) expense, net (30) (48) 216 (32)

Noncontrolling interest in income of subsidiaries 543 5,179 7,888 19,930

Employment Agreement Award and incentive plan award expenses 2,461 2,368 4,884 4,606

Severance related costs* 767 481 2,746 1,201

Impairment of long-lived assets 26,666 - 41,211 -
------ --- ------ ---

Adjusted EBITDA $28,911 $32,833 $125,470 $121,388
======= ======= ======== ========


*The Company has modified the definition of Adjusted EBITDA during 2015 for the inclusion of severance related costs.

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






December 31, 2015 December 31, 2014
----------------- -----------------

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

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

SELECTED BALANCE SHEET DATA:

Cash and cash equivalents $67,376 $67,781

Intangible assets, net 1,042,956 1,112,443

Total assets 1,346,524 1,391,694

Total debt (including current
portion, net of original issue
discount and issuance costs) 1,024,337 813,444

Total liabilities 1,407,062 1,160,286

Total (deficit) equity (71,824) 220,572

Redeemable noncontrolling interest 11,286 10,836

Noncontrolling interest 751 201,674


Current Amount Applicable Interest

Outstanding Rate
----------- ----

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

SELECTED LEVERAGE DATA:

2015 Credit Facility, net of
original issue discount and
issuance costs of approximately
$11.9 million (subject to variable
rates) (a) $336,339 5.11%

9.25% senior subordinated notes due
February 2020, net of original
issue discount and issuance costs
of approximately $3.2 million
(fixed rate) 331,796 9.25%

7.375% senior secured notes due
April 2022, net of original issue
discount and issuance costs of
approximately $5.7 million (fixed
rate) 344,330 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,
-------------------------------

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

(Unaudited)

(in thousands)

Net Revenue:

Radio Advertising $55,755 $58,841 $(3,086) -5.2%

Political Advertising 1,172 2,270 (1,098) -48.4%

Digital Advertising 6,451 7,124 (673) -9.4%

Cable Television Advertising 19,202 19,891 (689) -3.5%

Cable Television Affiliate Fees 25,334 19,864 5,470 27.5%

Event Revenues & Other 1,470 1,740 (270) -15.5%


Net Revenue (as reported) $109,384 $109,730 $(346) -0.3%
======== ======== ===== ====


Net revenue decreased to approximately $109.4 million for the quarter ended December 31, 2015, from approximately $109.7 million for the same period in 2014. Net revenues from our radio broadcasting segment decreased 9.1% for the quarter ended December 31, 2015, from the same period in 2014, primarily from declines in our largest markets. We experienced net revenue growth in certain markets (most significantly in our Dallas and Washington D.C. markets); however, this growth was offset by declines in other markets (with our Atlanta, Baltimore, Houston, Indianapolis, and Raleigh markets experiencing the most significant declines). Reach Media's net revenues increased slightly by $162,000 or 1.3% in the fourth quarter 2015, compared to the same period in 2014. We recognized approximately $44.7 million of revenue from our cable television segment during the three months ended December 31, 2015, compared to approximately $39.9 million for the same period in 2014, the increase due primarily from an increase in affiliate revenue. Finally, net revenues for our internet segment decreased 12.1% for the three months ended December 31, 2015, compared to the same period in 2014 due primarily to a decline in alliance revenue.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $83.7 million for the quarter ended December 31, 2015, up 5.0% from the approximately $79.7 million incurred for the comparable quarter in 2014. Corporate selling, general and administrative expenses increased due primarily to higher compensation costs and bonuses for the quarter ended December 31, 2015. In addition, our cable television segment incurred higher selling, general and administrative expenses associated with marketing costs and higher employee compensation costs.

Depreciation and amortization expense decreased to approximately $9.0 million compared to approximately $9.1 million for the quarters ended December 31, 2015 and 2014, respectively, a decrease of 1.4%. The decrease was due to the completion of useful lives for certain assets.

Impairment of long-lived assets for the quarter ended December 31, 2015 was approximately $26.7 million. 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 increased to approximately $20.4 million for the quarter ended December 31, 2015, compared to approximately $19.3 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 $17.7 million on all outstanding instruments for the quarter ended December 31, 2015, compared to cash interest payments of approximately $10.4 million on all outstanding instruments for the quarter ended December 31, 2014.

The benefit from income taxes for the quarter ended December 31, 2015, was approximately $7.9 million compared to a provision for income taxes of approximately $8.6 million for the comparable period in 2014. The decrease was due to the impairment of long-lived intangible assets that reduced the deferred tax liabilities and related deferred tax expense for 2015. The Company paid $12,000 and $15,000 in taxes for the quarters ended December 31, 2015 and 2014, respectively.

The decrease in noncontrolling interests in income of subsidiaries is due primarily to our increased 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 December 31, 2015 and 2014, respectively. As of December 31, 2015, the Company had total debt (net of cash balances, original issue discount and issuance costs) of approximately $957.0 million. During the year ended December 31, 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 December 31, 2015, or during the three months or year ended December 31, 2014.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three months and year ended December 31, 2015 and 2014 are included.



Three Months Ended December 31, 2015
------------------------------------

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


Corporate/

Radio Reach Cable Eliminations/

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


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 32,631 19,209 2,583 3,719 8,032 (912)

Corporate selling, general and administrative 15,327 - 1,179 - 2,732 11,416

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 57,564 9,791 5,795 36,337 11,202


Operating (loss) income (11,305) (9,261) 2,480 (380) 8,388 (12,532)

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) (9,598) 2,480 (380) 6,469 (30,630)

(BENEFIT FROM) PROVISION FOR INCOME TAXES (7,853) (8,085) 200 - 32 -


CONSOLIDATED NET (LOSS) INCOME (23,806) (1,513) 2,280 (380) 6,437 (30,630)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 543 - - - - 543

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $(24,349) $(1,513) $2,280 $(380) $6,437 $(31,173)



Adjusted EBITDA(3) $28,911 $19,264 $2,726 $145 $15,328 $(8,552)






Three Months Ended December 31, 2014
------------------------------------

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


Corporate/

Radio Reach Cable Eliminations/

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


STATEMENT OF OPERATIONS:


NET REVENUE $109,730 $53,131 $12,109 $6,162 $39,920 $(1,592)

OPERATING EXPENSES:

Programming and technical 35,977 10,299 7,681 1,653 17,971 (1,627)

Selling, general and administrative 31,253 19,248 1,679 3,907 7,047 (628)

Corporate selling, general and administrative 12,516 - 1,261 - 2,298 8,957

Stock-based compensation 1,423 102 - 20 - 1,301

Depreciation and amortization 9,137 1,207 285 591 6,518 536


Total operating expenses 90,306 30,856 10,906 6,171 33,834 8,539


Operating income (loss) 19,424 22,275 1,203 (9) 6,086 (10,131)

INTEREST INCOME 192 - - - 35 157

INTEREST EXPENSE 19,342 255 - - 3,039 16,048

OTHER INCOME, net (48) (19) - - - (29)


Income (loss) before provision for (benefit from) income
taxes and 322 22,039 1,203 (9) 3,082 (25,993)
noncontrolling interest in income of subsidiaries

PROVISION FOR (BENEFIT FROM) INCOME TAXES 8,594 10,728 (2,134) - - -


CONSOLIDATED NET (LOSS) INCOME (8,272) 11,311 3,337 (9) 3,082 (25,993)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 5,179 - - - - 5,179

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $(13,451) $11,311 $3,337 $(9) $3,082 $(31,172)



Adjusted EBITDA(3) $32,833 $24,042 $1,488 $614 $12,716 $(6,027)






Year Ended December 31, 2015
----------------------------

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


Corporate/

Radio Reach Cable Eliminations/

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


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 149,444 83,654 18,493 13,754 37,595 (4,052)

Corporate selling, general and administrative 49,167 - 4,310 - 12,247 32,610

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 414,694 156,331 45,969 38,241 143,284 30,869


Operating income (loss) 36,167 41,065 8,810 (17,064) 40,339 (36,983)

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 (51,076) 39,760 8,810 (17,064) 31,023 (113,605)
noncontrolling interest in income of
subsidiaries

PROVISION FOR INCOME TAXES 15,058 14,711 315 - 32 -


CONSOLIDATED NET (LOSS) INCOME (66,134) 25,049 8,495 (17,064) 30,991 (113,605)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 7,888 - - - - 7,888

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $(74,022) $25,049 $8,495 $(17,064) $30,991 $(121,493)



Adjusted EBITDA(3) $125,470 $74,104 $9,196 $(307) $67,376 $(24,899)






Year Ended December 31, 2014
----------------------------

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


Corporate/

Radio Reach Cable Eliminations/

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


STATEMENT OF OPERATIONS:


NET REVENUE $441,387 $213,037 $52,543 $24,337 $157,086 $(5,616)

OPERATING EXPENSES:

Programming and technical 141,689 43,057 31,581 8,602 64,282 (5,833)

Selling, general and administrative 142,317 83,667 14,441 14,376 32,098 (2,265)

Corporate selling, general and administrative 41,800 - 4,827 - 7,830 29,143

Stock-based compensation 1,594 118 - 20 - 1,456

Depreciation and amortization 36,822 5,039 1,146 2,422 26,115 2,100


Total operating expenses 364,222 131,881 51,995 25,420 130,325 24,601


Operating income (loss) 77,165 81,156 548 (1,083) 26,761 (30,217)

INTEREST INCOME 366 - - - 75 291

INTEREST EXPENSE 79,810 1,115 - - 12,156 66,539

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

OTHER (INCOME) EXPENSE, net (32) (20) - 1 96 (109)


(Loss) income before provision for (benefit from) income
taxes and (7,926) 80,061 548 (1,084) 14,584 (102,035)
noncontrolling interest in income of subsidiaries

PROVISION FOR (BENEFIT FROM) INCOME TAXES 34,814 36,903 (2,089) - - -


CONSOLIDATED NET (LOSS) INCOME (42,740) 43,158 2,637 (1,084) 14,584 (102,035)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 19,930 - - - - 19,930

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $(62,670) $43,158 $2,637 $(1,084) $14,584 $(121,965)



Adjusted EBITDA(3) $121,388 $87,431 $1,694 $1,403 $53,176 $(22,316)


Radio One, Inc. will hold a conference call to discuss its results for fourth quarter of 2015, as well as full year 2015. The conference call is scheduled for Thursday, February 25, 2016 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-800-230-1059; international callers may dial direct (+1) 612-234-9960.

A replay of the conference call will be available from 12:00 p.m. EST February 25, 2016 until 11:59 p.m. EST February 27, 2016. 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 384389. 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 56 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, 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, and interest income. 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 December 31, 2015 and 2014, Radio One had
48,220,262 and 47,608,038 shares of common stock outstanding on a
weighted average basis (basic and fully diluted), for outstanding stock
options, respectively. For the year ended December 31, 2015 and 2014,
Radio One had 48,027,888 and 47,525,726 shares of common stock
outstanding on a weighted average basis (basic and fully diluted), for
outstanding stock options, respectively.
3. "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, severance related costs, 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 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, 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, 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.
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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


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