WASHINGTON, Nov. 3, 2016 /PRNewswire/ -- Radio One, Inc.
(NASDAQ: ROIAK and ROIA) today reported its results for the quarter
ended September 30, 2016. Net
revenue was approximately $110.9
million, a decrease of 4.3% from the same period in 2015.
Broadcast and internet operating income1 was
approximately $43.0 million, an
increase of 2.9% from the same period in 2015. The Company reported
operating income of approximately $24.5
million for the three months ended September 30, 2016, compared to operating income
of $7.1 million for the same period
in 2015. Net loss was $423,000 or
$0.01 per share (basic) compared to
$18.1 million or $0.38 per share (basic) for the same period in
2015.
Alfred C. Liggins, III, Radio
One's CEO and President stated, "Despite softer than anticipated
third quarter revenues, our continuing cost control measures helped
to deliver positive Adjusted EBITDA for the quarter, and we
re-affirm our guidance for Adjusted EBITDA in the range
$133-$137 million for FY 2016. During
the third quarter we signed a letter of intent for the sale of our
FM towers, and we anticipate closing that transaction in the fourth
quarter.
Based on Miller Kaplan, our
radio clusters were down 6.4%, compared to the markets -3%.
Total spot revenue for our radio clusters in the third quarter was
-4.3% compared to prior year, a slight underperformance versus our
markets, which were down 3.2%. The anticipated lift from political
advertising revenue did not materialize in Q3, although we have
subsequently seen a significant increase in political revenue as
election day approaches. Our fourth
quarter radio pacings are currently up approximately 3.6%.
We have continued to eliminate unprofitable NTR
events, which has helped mitigate the impact of lower
radio revenues on the bottom line, and recently made a significant
new hire for our local digital business
which I believe will help us to grow that revenue
stream over time: Mark Charnock,
formerly SVP of Sales at Monster, has been recruited as Chief
Digital Revenue Officer for the radio division and Reach Media.
Cable television revenues were impacted by audience
under-delivery relative to our 2015/16 upfront rate card, but as we
move into Q4 and the new broadcast year, we have course-corrected
and this issue is not expected to recur. We anticipate high single
digit advertising growth for TV One in the fourth quarter.
In order to better reflect the diversified media platform that
we have built, effective January
2017, we will be renaming the company Urban One, Inc. Each
entity will retain their current brands and names, so the radio
stations will continue to roll-up under the Radio One brand, and
the same applies to TV One, Interactive One and Reach Media."
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited, as
reclassified2)
|
|
(unaudited)
|
|
(unaudited, as
reclassified2)
|
|
|
(in thousands, except
share data)
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
110,856
|
|
$
115,893
|
|
$
342,663
|
|
$
341,477
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
32,093
|
|
32,785
|
|
96,789
|
|
98,667
|
|
Selling, general and
administrative, excluding stock-based compensation
|
35,806
|
|
41,380
|
|
114,347
|
|
118,397
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
9,173
|
|
10,798
|
|
32,425
|
|
32,256
|
|
Stock-based
compensation
|
782
|
|
1,016
|
|
2,319
|
|
3,795
|
|
Depreciation and
amortization
|
8,469
|
|
8,277
|
|
25,723
|
|
26,345
|
|
Impairment of
long-lived assets
|
-
|
|
14,545
|
|
-
|
|
14,545
|
|
Total operating
expenses
|
86,323
|
|
108,801
|
|
271,603
|
|
294,005
|
|
Operating income
|
24,533
|
|
7,092
|
|
71,060
|
|
47,472
|
|
INTEREST
INCOME
|
51
|
|
33
|
|
174
|
|
68
|
|
INTEREST
EXPENSE
|
20,319
|
|
20,356
|
|
61,488
|
|
59,620
|
|
GAIN (LOSS) ON
RETIREMENT OF DEBT
|
-
|
|
-
|
|
2,646
|
|
(7,091)
|
|
OTHER (INCOME)
EXPENSE, net
|
(22)
|
|
(39)
|
|
(76)
|
|
246
|
|
Income (loss) before
provision for income taxes and noncontrolling interest in income of
subsidiaries
|
4,287
|
|
(13,192)
|
|
12,468
|
|
(19,417)
|
|
PROVISION FOR INCOME
TAXES
|
4,307
|
|
4,439
|
|
8,265
|
|
22,911
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
(20)
|
|
(17,631)
|
|
4,203
|
|
(42,328)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
403
|
|
514
|
|
1,259
|
|
7,345
|
|
CONSOLIDATED NET
(LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(423)
|
|
$
(18,145)
|
|
$
2,944
|
|
$
(49,673)
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
|
|
|
|
|
|
|
|
CONSOLIDATED NET
(LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(423)
|
|
$
(18,145)
|
|
$
2,944
|
|
$
(49,673)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic3
|
47,481,004
|
|
48,220,262
|
|
48,066,267
|
|
47,963,763
|
|
Weighted average
shares outstanding - diluted4
|
47,481,004
|
|
48,220,262
|
|
49,240,166
|
|
47,963,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
PER SHARE DATA -
basic and diluted:
|
(unaudited)
|
|
(unaudited, as
reclassified2)
|
|
(unaudited)
|
|
(unaudited, as
reclassified2)
|
|
(in thousands, except
per share data)
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common stockholders
(basic)
|
$
(0.01)
|
|
$
(0.38)
|
|
$
0.06
|
|
$
(1.04)
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common stockholders
(diluted)
|
$
(0.01)
|
|
$
(0.38)
|
|
$
0.06
|
|
$
(1.04)
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
Broadcast and
internet operating income 1
|
$
42,957
|
|
$
41,728
|
|
$
131,527
|
|
$
124,413
|
Broadcast and
internet operating income margin (% of net revenue)
|
38.8%
|
|
36.0%
|
|
38.4%
|
|
36.4%
|
|
|
|
|
|
|
|
|
Broadcast and
internet operating income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common
stockholders
|
$
(423)
|
|
$
(18,145)
|
|
$
2,944
|
|
$
(49,673)
|
Add back non-broadcast and internet operating income items included
in consolidated net (loss) income:
|
|
|
|
|
|
|
|
Interest
income
|
(51)
|
|
(33)
|
|
(174)
|
|
(68)
|
Interest
expense
|
20,319
|
|
20,356
|
|
61,488
|
|
59,620
|
Provision for income
taxes
|
4,307
|
|
4,439
|
|
8,265
|
|
22,911
|
Corporate selling,
general and administrative expenses
|
9,173
|
|
10,798
|
|
32,425
|
|
32,256
|
Stock-based
compensation
|
782
|
|
1,016
|
|
2,319
|
|
3,795
|
(Gain) loss on
retirement of debt
|
-
|
|
-
|
|
(2,646)
|
|
7,091
|
Other (income)
expense, net
|
(22)
|
|
(39)
|
|
(76)
|
|
246
|
Depreciation and
amortization
|
8,469
|
|
8,277
|
|
25,723
|
|
26,345
|
Noncontrolling
interest in income of subsidiaries
|
403
|
|
514
|
|
1,259
|
|
7,345
|
Impairment of
long-lived assets
|
-
|
|
14,545
|
|
-
|
|
14,545
|
Broadcast and
internet operating income
|
$
42,957
|
|
$
41,728
|
|
$
131,527
|
|
$
124,413
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
34,883
|
|
$
33,025
|
|
$
105,549
|
|
$
96,559
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common
stockholders:
|
$
(423)
|
|
$
(18,145)
|
|
$
2,944
|
|
$
(49,673)
|
Interest
income
|
(51)
|
|
(33)
|
|
(174)
|
|
(68)
|
Interest
expense
|
20,319
|
|
20,356
|
|
61,488
|
|
59,620
|
Provision for income
taxes
|
4,307
|
|
4,439
|
|
8,265
|
|
22,911
|
Depreciation and
amortization
|
8,469
|
|
8,277
|
|
25,723
|
|
26,345
|
EBITDA
|
$
32,621
|
|
$
14,894
|
|
$
98,246
|
|
$
59,135
|
Stock-based
compensation
|
782
|
|
1,016
|
|
2,319
|
|
3,795
|
(Gain) loss on
retirement of debt
|
-
|
|
-
|
|
(2,646)
|
|
7,091
|
Other (income)
expense, net
|
(22)
|
|
(39)
|
|
(76)
|
|
246
|
Noncontrolling
interest in income of subsidiaries
|
403
|
|
514
|
|
1,259
|
|
7,345
|
Employment Agreement
Award and incentive plan award expenses
|
1,027
|
|
961
|
|
5,802
|
|
2,423
|
Severance-related
costs*
|
72
|
|
1,134
|
|
645
|
|
1,979
|
Impairment of
long-lived assets
|
-
|
|
14,545
|
|
-
|
|
14,545
|
Adjusted
EBITDA
|
$
34,883
|
|
$
33,025
|
|
$
105,549
|
|
$
96,559
|
|
|
|
|
|
|
|
|
*The Company has
modified the definition of Adjusted EBITDA for the inclusion of
severance-related costs.
|
All prior periods
have been reclassified to conform to the current period
presentation.
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
(unaudited)
|
|
|
|
|
(in
thousands)
|
SELECTED BALANCE
SHEET DATA:
|
|
|
Cash and cash
equivalents
|
$
72,174
|
|
$
67,376
|
|
Intangible assets,
net
|
1,025,589
|
|
1,042,956
|
|
Total
assets
|
1,359,529
|
|
1,346,524
|
|
Total debt (including
current portion, net of original issue discount and issuance
costs)
|
1,005,783
|
|
1,024,337
|
|
Total
liabilities
|
1,413,591
|
|
1,407,062
|
|
Total
deficit
|
(66,066)
|
|
(71,824)
|
|
Redeemable
noncontrolling interest
|
12,004
|
|
11,286
|
|
|
|
|
|
|
|
Current Amount
Outstanding
|
|
Applicable Interest
Rate
|
|
(in
thousands)
|
|
|
SELECTED LEVERAGE
DATA:
|
|
|
2015 Credit Facility,
net of original issue discount and issuance costs of approximately
$9.1 million (subject to variable rates) (a)
|
$
336,494
|
|
5.14%
|
|
9.25% senior
subordinated notes due February 2020, net of original issue
discount and issuance costs of approximately $2.4 million (fixed
rate)
|
312,550
|
|
9.25%
|
|
7.375% senior secured
notes due April 2022, net of original issue discount and issuance
costs of approximately $5.1 million (fixed rate)
|
344,867
|
|
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,
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
$
Change
|
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
52,475
|
|
$
|
55,509
|
|
$
|
(3,034)
|
|
|
-5.5%
|
|
Political
Advertising
|
|
|
477
|
|
|
413
|
|
|
64
|
|
|
15.5%
|
|
Digital
Advertising
|
|
|
6,343
|
|
|
6,857
|
|
|
(514)
|
|
|
-7.5%
|
|
Cable Television
Advertising
|
|
|
20,831
|
|
|
22,069
|
|
|
(1,238)
|
|
|
-5.6%
|
|
Cable Television
Affiliate Fees
|
|
|
25,822
|
|
|
25,502
|
|
|
320
|
|
|
1.3%
|
|
Event Revenues &
Other
|
|
|
4,908
|
|
|
5,543
|
|
|
(635)
|
|
|
-11.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
110,856
|
|
$
|
115,893
|
|
$
|
(5,037)
|
|
|
-4.3%
|
|
Net revenue decreased to approximately $110.9 million for the quarter ended September 30, 2016, from approximately
$115.9 million for the same period in
2015, a decrease of 4.3%. Net revenues from our radio broadcasting
segment decreased 6.2% for the quarter ended September 30, 2016, versus the same period in
2015. We experienced net revenue growth most significantly in our
Charlotte, Richmond and Washington D.C. markets; however, this growth
was offset by declines in other markets (with Columbus, Detroit, Philadelphia, and Houston experiencing the most significant
declines). Reach Media's net revenues decreased 7.1% in the third
quarter 2016, compared to the same period in 2015 due primarily to
lower advertising and events revenue. We recognized approximately
$46.8 million of revenue from our
cable television segment during the three months ended September 30, 2016, compared to approximately
$47.6 million for the same period in
2015, the decrease was primarily from lower advertising sales.
Finally, net revenues for our internet business decreased 2.3% for
the three months ended September 30,
2016, compared to the same period in 2015 due primarily to
decreases in alliance and indirect revenues.
Operating expenses, excluding depreciation and amortization,
stock-based compensation and impairment of long-lived assets,
decreased to approximately $77.1
million for the quarter ended September 30, 2016, down 9.3% from the
approximately $85.0 million incurred
for the comparable quarter in 2015. There were decreases in all
major operating expense categories, most significantly from
selling, general and administrative expenses as well as corporate
selling, general and administrative expenses. The decreased
expenses were primarily driven by our cable television and radio
broadcasting segments. The cable television segment incurred higher
marketing and promotional expenses in the prior period related to
advertising and promoting a new original program, as well as higher
employee compensation costs in the prior period. Our radio
broadcasting segment's lower expenses were driven by various cost
cutting measures, including eliminating unprofitable events, lower
music licensing costs and lower contractual costs.
Depreciation and amortization expense increased to approximately
$8.5 million compared to
approximately $8.3 million for the
quarter ended September 30, 2015.
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. The Company recorded a goodwill impairment charge
related to Interactive One of approximately $14.5 million during the quarter ended
September 30, 2015.
Interest expense decreased to approximately $20.3 million for the quarter ended September 30, 2016, compared to approximately
$20.4 million for the same period in
2015. On April 17, 2015, the
Company's 2011 Credit Agreement, and TV One notes were paid off,
with balances of $367.6 million and
$119.0 million, respectively. The
payoffs were achieved by the Company entering into its new
$350.0 million 2015 Credit Facility,
issuing the 2022 Notes in an aggregate principal amount of
$350.0 million and the Comcast Note
in the aggregate principal amount of approximately $11.9 million. The Company made cash interest
payments of approximately $19.8
million on its outstanding debt for the quarter ended
September 30, 2016, compared to cash
interest payments of approximately $23.8
million on all outstanding instruments for the quarter ended
September 30, 2015.
The provision for income taxes for the quarter ended
September 30, 2016 was approximately
$4.3 million and $4.4 million for the comparable period in 2015,
with the change primarily attributable to the deferred tax
liability ("DTL") for indefinite-lived intangible assets. The
change in taxes was primarily due to the completion of tax
amortization from previously acquired indefinite-lived intangible
assets and provision to return adjustments to the state effective
rate. The Company paid $39,000 and
$3,000 in taxes for the quarters
ended September 30, 2016 and 2015,
respectively.
The decrease in noncontrolling interests in income of
subsidiaries was due to lower net income generated by Reach
Media.
Other pertinent financial information includes capital
expenditures of approximately $1.6
million and $1.5 million for
the quarters ended September 30, 2016
and 2015, respectively. As of September 30, 2016, the Company had total debt
(net of cash balances and original issue discount) of approximately
$933.6 million. During the three
months ended September 30, 2016, the
Company repurchased 619,418 shares of Class D common stock in the
aggregate amount of approximately $1.9
million. During the nine months ended September 30, 2016, the Company repurchased
1,255,592 shares of Class D common stock in the aggregate amount of
approximately $3.0 million. The
Company, in connection with its 2009 stock plan, is authorized to
purchase shares of Class D common stock to satisfy employee tax
obligations in connection with the vesting of share grants under
the plan. During the nine months ended September 30, 2016, the Company repurchased
330,111 shares of Class D common stock, to satisfy employee tax
obligations, in the amount of $568,000. During the nine months ended
September 30, 2015, the Company
repurchased 345,293 shares of Class D common stock, to satisfy
employee tax obligations, in the amount of approximately
$1.4 million. There were no stock
repurchases made during the three month period ended September 30, 2015.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three and nine months ended
September 30, 2016 and 2015 are
included. These detailed, unaudited and adjusted statements
of operations include certain reclassifications. These
reclassifications had no effect on previously reported net income
or loss, or any other previously reported statements of operations,
balance sheet or cash flow amounts.
|
|
|
|
|
Three Months Ended
September 30, 2016
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
110,856
|
$
|
47,703
|
$
|
12,530
|
$
|
5,374
|
$
|
46,822
|
$
|
(1,573)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
32,093
|
|
8,405
|
|
5,706
|
|
1,958
|
|
17,163
|
|
(1,139)
|
|
Selling, general and
administrative
|
|
35,806
|
|
19,314
|
|
4,291
|
|
3,480
|
|
9,154
|
|
(433)
|
|
Corporate selling,
general and administrative
|
|
9,173
|
|
-
|
|
415
|
|
-
|
|
2,279
|
|
6,479
|
|
Stock-based
compensation
|
|
782
|
|
49
|
|
11
|
|
-
|
|
-
|
|
722
|
|
Depreciation and
amortization
|
|
8,469
|
|
1,035
|
|
59
|
|
417
|
|
6,559
|
|
399
|
|
Total operating
expenses
|
|
86,323
|
|
28,803
|
|
10,482
|
|
5,855
|
|
35,155
|
|
6,028
|
|
Operating income (loss)
|
|
24,533
|
|
18,900
|
|
2,048
|
|
(481)
|
|
11,667
|
|
(7,601)
|
|
INTEREST
INCOME
|
|
51
|
|
-
|
|
-
|
|
-
|
|
-
|
|
51
|
|
INTEREST
EXPENSE
|
|
20,319
|
|
330
|
|
-
|
|
-
|
|
1,919
|
|
18,070
|
|
OTHER INCOME,
net
|
|
(22)
|
|
(16)
|
|
-
|
|
-
|
|
-
|
|
(6)
|
|
Income (loss) before
provision for income taxes and noncontrolling interest in income of
subsidiaries
|
|
4,287
|
|
18,586
|
|
2,048
|
|
(481)
|
|
9,748
|
|
(25,614)
|
|
PROVISION FOR INCOME
TAXES
|
|
4,307
|
|
4,211
|
|
35
|
|
12
|
|
49
|
|
-
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(20)
|
|
14,375
|
|
2,013
|
|
(493)
|
|
9,699
|
|
(25,614)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
403
|
|
-
|
|
-
|
|
-
|
|
-
|
|
403
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(423)
|
$
|
14,375
|
$
|
2,013
|
$
|
(493)
|
$
|
9,699
|
$
|
(26,017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
34,883
|
$
|
20,052
|
$
|
2,118
|
$
|
(64)
|
$
|
18,230
|
$
|
(5,453)
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
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
|
|
41,380
|
|
21,567
|
|
4,518
|
|
3,457
|
|
12,819
|
|
(981)
|
|
Corporate selling,
general and administrative
|
|
10,798
|
|
-
|
|
814
|
|
-
|
|
3,079
|
|
6,905
|
|
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
|
|
32,978
|
|
10,667
|
|
20,418
|
|
38,541
|
|
6,197
|
|
Operating income (loss)
|
|
7,092
|
|
17,902
|
|
2,819
|
|
(14,915)
|
|
9,030
|
|
(7,744)
|
|
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)
|
|
17,600
|
|
2,819
|
|
(14,915)
|
|
7,111
|
|
(25,807)
|
|
PROVISION FOR INCOME
TAXES
|
|
4,439
|
|
4,385
|
|
54
|
|
-
|
|
-
|
|
-
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(17,631)
|
|
13,215
|
|
2,765
|
|
(14,915)
|
|
7,111
|
|
(25,807)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
514
|
|
-
|
|
-
|
|
-
|
|
-
|
|
514
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(18,145)
|
$
|
13,215
|
$
|
2,765
|
$
|
(14,915)
|
$
|
7,111
|
$
|
(26,321)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
33,025
|
$
|
19,289
|
$
|
2,425
|
$
|
130
|
$
|
15,946
|
$
|
(4,765)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
342,663
|
$
|
145,597
|
$
|
42,328
|
$
|
15,668
|
$
|
143,858
|
$
|
(4,788)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
96,789
|
|
28,374
|
|
17,284
|
|
5,653
|
|
48,896
|
|
(3,418)
|
|
Selling, general and
administrative
|
|
114,347
|
|
60,200
|
|
16,010
|
|
10,110
|
|
29,398
|
|
(1,371)
|
|
Corporate selling,
general and administrative
|
|
32,425
|
|
-
|
|
2,491
|
|
-
|
|
7,594
|
|
22,340
|
|
Stock-based
compensation
|
|
2,319
|
|
188
|
|
31
|
|
6
|
|
-
|
|
2,094
|
|
Depreciation and
amortization
|
|
25,723
|
|
3,256
|
|
148
|
|
1,299
|
|
19,664
|
|
1,356
|
|
Total operating
expenses
|
|
271,603
|
|
92,018
|
|
35,964
|
|
17,068
|
|
105,552
|
|
21,001
|
|
Operating income (loss)
|
|
71,060
|
|
53,579
|
|
6,364
|
|
(1,400)
|
|
38,306
|
|
(25,789)
|
|
INTEREST
INCOME
|
|
174
|
|
-
|
|
-
|
|
-
|
|
-
|
|
174
|
|
INTEREST
EXPENSE
|
|
61,488
|
|
1,001
|
|
-
|
|
-
|
|
5,756
|
|
54,731
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
2,646
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,646
|
|
OTHER INCOME,
net
|
|
(76)
|
|
(22)
|
|
-
|
|
-
|
|
-
|
|
(54)
|
|
Income (loss) before
provision for income taxes and noncontrolling interest in income of
subsidiaries
|
|
12,468
|
|
52,600
|
|
6,364
|
|
(1,400)
|
|
32,550
|
|
(77,646)
|
|
PROVISION FOR INCOME
TAXES
|
|
8,265
|
|
8,056
|
|
109
|
|
32
|
|
68
|
|
-
|
|
CONSOLIDATED NET
INCOME (LOSS )
|
|
4,203
|
|
44,544
|
|
6,255
|
|
(1,432)
|
|
32,482
|
|
(77,646)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
1,259
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,259
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
2,944
|
$
|
44,544
|
$
|
6,255
|
$
|
(1,432)
|
$
|
32,482
|
$
|
(78,905)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
105,549
|
$
|
57,563
|
$
|
6,605
|
$
|
(86)
|
$
|
57,970
|
$
|
(16,503)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
|
Media
|
|
Internet
|
Television
|
Eliminations
|
|
|
|
|
|
|
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
|
|
118,397
|
|
66,030
|
|
15,910
|
|
10,034
|
|
29,563
|
|
(3,140)
|
|
Corporate selling,
general and administrative
|
|
32,256
|
|
-
|
|
3,131
|
|
-
|
|
9,515
|
|
19,610
|
|
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
|
|
100,350
|
|
36,178
|
|
32,446
|
|
106,948
|
|
18,083
|
|
Operating income (loss)
|
|
47,472
|
|
48,743
|
|
6,330
|
|
(16,683)
|
|
31,950
|
|
(22,868)
|
|
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)
|
|
47,776
|
|
6,330
|
|
(16,683)
|
|
24,553
|
|
(81,393)
|
|
PROVISION FOR INCOME
TAXES
|
|
22,911
|
|
22,796
|
|
115
|
|
-
|
|
-
|
|
-
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(42,328)
|
|
24,980
|
|
6,215
|
|
(16,683)
|
|
24,553
|
|
(81,393)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
7,345
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,345
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(49,673)
|
$
|
24,980
|
$
|
6,215
|
$
|
(16,683)
|
$
|
24,553
|
$
|
(88,738)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
96,559
|
$
|
53,254
|
$
|
6,470
|
$
|
(451)
|
$
|
52,049
|
$
|
(14,763)
|
Radio One, Inc. will hold a conference call to discuss its
results for third fiscal quarter of 2016. The conference call is
scheduled for Thursday, November 03,
2016 at 10:00 a.m. EDT. To
participate on this call, U.S. callers may dial toll-free
1-800-288-8968; international callers may dial direct (+1)
612-332-0335.
A replay of the conference call will be available from
12:00 p.m. EDT November 03, 2016 until 11:59 p.m. EDT November
05, 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 404385. 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 Rickey Smiley Morning
Show, the DL Hughley
Show, Bishop T.D. Jakes'
Empowering Moments, and the Reverend Al Sharpton Show.
Beyond its core radio broadcasting franchise, Radio One owns
Interactive One (interactiveone.com), the fastest growing
and definitive digital resource for Black and Latin Americans,
reaching millions each month through social content, news,
information, and entertainment. Interactive One operates a number
of branded sites including News One (news), The Urban Daily (men),
Hello Beautiful (women), Global Grind (Millennials) and social
networking websites such as BlackPlanet and MiGente. The Company
also owns TV One, LLC (tvone.tv), a cable/satellite network
programming serving more than 57 million households, offering a
broad range of real-life and entertainment-focused original
programming, classic series, movies and music designed to
entertain, inform and inspire a diverse audience of adult Black
viewers. Additionally, One Solution combines the
dynamics of Radio One's holdings to provide brands with an
integrated and effectively engaging marketing approach that reaches
82% of Black Americans throughout the country.
Notes:
1
"Broadcast and internet operating income" consists of net (loss)
income before depreciation and amortization, corporate selling,
general and administrative expenses, stock-based compensation,
income taxes, noncontrolling interest in income (loss) of
subsidiaries, interest expense, impairment of long-lived assets,
other (income) expense, loss (gain) on retirement of debt, and
interest income. Broadcast and internet operating income is not a
measure of financial performance under generally accepted
accounting principles. Nevertheless, broadcast and internet
operating income is a significant measure used by our management to
evaluate the operating performance of our core operating segments
because broadcast and internet operating income provides helpful
information about our results of operations apart from expenses
associated with our fixed assets and long-lived intangible assets,
income taxes, investments, debt financings and retirements,
overhead, stock-based compensation, impairment charges, and asset
sales. Our measure of broadcast and internet operating income is
similar to our historic use of station operating income, however,
reflects our more diverse business and, therefore, may not be
similar to "station operating income" or other similarly titled
measures used by other companies. Broadcast and internet operating
income does not purport to represent operating income or cash flow
from operating activities, as those terms are defined under
generally accepted accounting principles, and should not be
considered as an alternative to those measurements as an indicator
of our performance. A reconciliation of net income (loss) to
broadcast and internet operating income has been provided in this
release.
2
Certain reclassifications have been made to prior year balances to
conform to the current year presentation. These
reclassifications had no effect on previously reported consolidated
net income or loss or any other statement of operations, balance
sheet or cash flow amounts. Where applicable, these financial
statements have been identified as "As Reclassified."
3
For the three months ended September 30,
2016 and 2015, Radio One had 47,481,004 and 48,220,262
shares of common stock outstanding on a weighted average basis
(basic), respectively. For the nine months ended September 30, 2016 and 2015, Radio One had
48,066,267 and 47,963,763 shares of common stock outstanding on a
weighted average basis (basic), respectively.
4
For the three months ended September 30,
2016 and 2015, Radio One had 47,481,004 and 48,220,262
shares of common stock outstanding on a weighted average basis
(fully diluted for outstanding stock options), respectively.
For the nine months ended September 30,
2016 and 2015, Radio One had 49,240,165 and 47,963,763
shares of common stock outstanding on a weighted average basis
(fully diluted for outstanding stock options), respectively.
5
"Adjusted EBITDA" consists of net loss plus (1) depreciation,
amortization, income taxes, interest expense, noncontrolling
interest in income of subsidiaries, impairment of long-lived
assets, stock-based compensation, (gain) loss on retirement of
debt, Employment Agreement and incentive plan award expenses,
severance-related costs, less (2) other income and interest income.
Net income before interest income, interest expense, income taxes,
depreciation and amortization is commonly referred to in our
business as "EBITDA." Adjusted EBITDA and EBITDA are not measures
of financial performance under generally accepted accounting
principles. However, we believe Adjusted EBITDA is often a useful
measure of a company's operating performance and is a significant
measure used by our management to evaluate the operating
performance of our business because Adjusted EBITDA excludes
charges for depreciation, amortization and interest expense that
have resulted from our acquisitions and debt financing, our taxes,
impairment charges, gain on retirements of debt, and any
discontinued operations. Accordingly, we believe that Adjusted
EBITDA provides useful information about the operating performance
of our business, apart from the expenses associated with our fixed
assets and long-lived intangible assets, capital structure or the
results of our affiliated company. Adjusted EBITDA is frequently
used as one of the measures for comparing businesses in our
industry, although our measure of Adjusted EBITDA may not be
comparable to similarly titled measures of other companies,
including, but not limited to the fact that our definition includes
the results of all four segments (radio broadcasting, Reach Media,
internet and cable television). Adjusted EBITDA and EBITDA do
not purport to represent operating income or cash flow from
operating activities, as those terms are defined under generally
accepted accounting principles, and should not be considered as
alternatives to those measurements as an indicator of our
performance. A reconciliation of net income (loss) to EBITDA and
Adjusted EBITDA has been provided in this release.
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SOURCE Radio One, Inc.