Radio One, Inc. Reports Third Quarter Results

Radio One, Inc. Reports Third Quarter Results

WASHINGTON, Nov. 4, 2010 /PRNewswire-FirstCall/ -- Radio One, Inc. (Nasdaq: ROIAK and ROIA) today reported its results for the quarter ended September 30, 2010. Net revenue was approximately $74.5 million, a decrease of 0.2% from the same period in 2009. Station operating income(1) was approximately $28.3 million, a decrease of 13.4% from the same period in 2009. The Company reported operating income of approximately $17.3 million compared to operating income of approximately $22.4 million for the same period in 2009. Net income was approximately $1.0 million or $0.02 per share, compared to net income of approximately $14.2 million or $0.25 per share for the same period in 2009.

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Alfred C. Liggins, III, Radio One's CEO and President stated, "While overall core radio revenues were virtually flat in the third quarter compared to last year, we did see areas of improvement such as national business, which was up 3.1%, and radio segment internet revenue, which was up 133%. As I noted in the second quarter we continue to have upward pressure on the cost base, driven by a combination of contractual increases, commission expenses and the restoration of salary expenses. Reach Media continues to recover from its lack of guaranteed revenues during the third quarter with its strong in-house sales effort. Our internet business continues to grow, with revenues up 24% this quarter compared to the third quarter of 2009, and we continue to believe that our on-line platform will be a major source of revenue and EBITDA growth for the future.

"The multiple defaults that were triggered in each of the second and third quarters under the terms of our credit facility are still in effect; however, our business remains viable and we continue to work towards a resolution with our lenders and bondholders. I anticipate a solution to these issues will be forthcoming in the near term."

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

Three Months Ended
------------------
September 30,
-------------
2010 2009
---- ----
(as
adjusted)(2)
-------------
STATEMENT OF OPERATIONS (unaudited)
-----------
(in thousands,
--------------
except share data)
------------------

NET REVENUE $74,491 $74,651
OPERATING EXPENSES
Programming and technical,
excluding stock-based
compensation 18,811 17,994
Selling, general and
administrative, excluding
stock-based compensation 27,366 23,964
Corporate selling, general
and administrative,
excluding stock-based
compensation 5,488 4,702
Stock-based compensation 908 302
Depreciation and
amortization 4,625 5,337
Impairment of long-lived
assets - -
--- ---
Total operating expenses 57,198 52,299
------ ------
Operating Income (Loss) 17,293 22,352
INTEREST INCOME 28 33
INTEREST EXPENSE 12,122 9,224
GAIN ON RETIREMENT OF DEBT - -
EQUITY IN INCOME OF
AFFILIATED COMPANY 1,784 1,397
OTHER EXPENSE, net 50 38
--- ---
Income (loss) before
provision for (benefit
from) income taxes,
noncontrolling interest in
income of subsidiaries and
loss from discontinued
operations 6,933 14,520
PROVISION FOR (BENEFIT
FROM) INCOME TAXES 4,760 (1,508)
----- ------
Net income (loss) from
continuing operations 2,173 16,028
LOSS FROM DISCONTINUED
OPERATIONS, net of tax (125) (90)
---- ---
CONSOLIDATED NET INCOME
(LOSS) 2,048 15,938
NONCONTROLLING INTEREST IN
INCOME OF SUBSIDIARIES 1,010 1,712
----- -----
CONSOLIDATED NET INCOME
(LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $1,038 $14,226
====== =======

AMOUNTS ATTRIBUTABLE TO
COMMON STOCKHOLDERS
NET INCOME (LOSS) FROM
CONTINUING OPERATIONS $1,163 $14,316
LOSS FROM DISCONTINUED
OPERATIONS, net of tax (125) (90)
---- ---
CONSOLIDATED NET INCOME
(LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $1,038 $14,226
====== =======

Weighted average shares
outstanding -basic(3) 52,064,108 56,242,964
Weighted average shares
outstanding -diluted(4) 54,262,885 56,684,369

Nine Months Ended
-----------------
September 30,
-------------
2010 2009
---- ----
(as
adjusted)(2)
-------------
STATEMENT OF OPERATIONS (unaudited)
-----------
(in thousands,
--------------
except share data)
------------------

NET REVENUE $208,703 $204,835
OPERATING EXPENSES
Programming and technical,
excluding stock-based
compensation 56,736 56,768
Selling, general and
administrative, excluding
stock-based compensation 77,457 68,543
Corporate selling, general
and administrative,
excluding stock-based
compensation 20,537 15,034
Stock-based compensation 4,877 1,387
Depreciation and
amortization 14,195 15,804
Impairment of long-lived
assets - 48,953
--- ------
Total operating expenses 173,802 206,489
------- -------
Operating Income (Loss) 34,901 (1,654)
INTEREST INCOME 95 98
INTEREST EXPENSE 31,059 29,036
GAIN ON RETIREMENT OF DEBT - 1,221
EQUITY IN INCOME OF
AFFILIATED COMPANY 3,832 3,294
OTHER EXPENSE, net 2,934 96
----- ---
Income (loss) before
provision for (benefit
from) income taxes,
noncontrolling interest in
income of subsidiaries and
loss from discontinued
operations 4,835 (26,173)
PROVISION FOR (BENEFIT
FROM) INCOME TAXES 4,685 7,340
----- -----
Net income (loss) from
continuing operations 150 (33,513)
LOSS FROM DISCONTINUED
OPERATIONS, net of tax (205) (835)
---- ----
CONSOLIDATED NET INCOME
(LOSS) (55) (34,348)
NONCONTROLLING INTEREST IN
INCOME OF SUBSIDIARIES 1,427 3,650
----- -----
CONSOLIDATED NET INCOME
(LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(1,482) $(37,998)
======= ========

AMOUNTS ATTRIBUTABLE TO
COMMON STOCKHOLDERS
NET INCOME (LOSS) FROM
CONTINUING OPERATIONS $(1,277) $(37,163)
LOSS FROM DISCONTINUED
OPERATIONS, net of tax (205) (835)
---- ----
CONSOLIDATED NET INCOME
(LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(1,482) $(37,998)
======= ========

Weighted average shares
outstanding -basic(3) 51,316,498 61,873,161
Weighted average shares
outstanding -diluted(4) 51,316,498 61,873,161

Three Months Ended
September 30,
------------------
2010 2009
---- ----
(as
adjusted)(2)
-------------
(unaudited)
-----------
(in thousands, except
per share data)
----------------------
PER SHARE DATA - basic and diluted:

Net income (loss) from continuing
operations (basic) $0.02 $0.25
Income (loss) from discontinued
operations, net of tax (basic) (0.00) (0.00)
----- -----
Consolidated net income (loss)
attributable to common stockholders
(basic) $0.02 $0.25
===== =====

Net income (loss) from continuing
operations (diluted) $0.02 $0.25
Income (loss) from discontinued
operations, net of tax (diluted) (0.00) (0.00)
----- -----
Consolidated net income (loss)
attributable to common stockholders
(diluted) $0.02 $0.25
===== =====

SELECTED OTHER DATA
Station operating income(1) $28,314 $32,693
Station operating income margin (% of
net revenue) 38.0% 43.8%

Station operating income
reconciliation:

Consolidated net income (loss)
attributable to common stockholders $1,038 $14,226
Add back non-station operating
income items included in
consolidated net income (loss):
Interest income (28) (33)
Interest expense 12,122 9,224
Provision for (benefit from) income
taxes 4,760 (1,508)
Corporate selling, general and
administrative expenses 5,488 4,702
Stock-based compensation 908 302
Gain on retirement of debt - -
Equity in income of affiliated
company (1,784) (1,397)
Other expense, net 50 38
Depreciation and amortization 4,625 5,337
Noncontrolling interest in income of
subsidiaries 1,010 1,712
Impairment of long-lived assets - -
Loss from discontinued operations,
net of tax 125 90
Station operating income $28,314 $32,693
======= =======

Adjusted EBITDA(5) $22,826 $27,991

Adjusted EBITDA reconciliation:

Net income (loss) attributable to
common stockholders $1,038 $14,226
Interest income (28) (33)
Interest expense 12,122 9,224
Provision for (benefit from) income
taxes 4,760 (1,508)
Depreciation and amortization 4,625 5,337
----- -----
EBITDA $22,517 $27,246
Stock-based compensation 908 302
Gain on retirement of debt - -
Equity in income of affiliated
company (1,784) (1,397)
Other expense, net 50 38
Noncontrolling interest in income of
subsidiaries 1,010 1,712
Impairment of long-lived assets - -
Loss from discontinued operations,
net of tax 125 90
--- ---
Adjusted EBITDA $22,826 $27,991
======= =======

Nine Months Ended
September 30,
-----------------
2010 2009
---- ----
(as
adjusted)(2)
-------------
(unaudited)
-----------
(in thousands, except
per share data)
----------------------
PER SHARE DATA - basic and diluted:

Net income (loss) from continuing
operations (basic) $(0.02) * $(0.60)
Income (loss) from discontinued
operations, net of tax (basic) $(0.00) * (0.01)
------ -----
Consolidated net income (loss)
attributable to common stockholders
(basic) $(0.03) * $(0.61)
====== ======

Net income (loss) from continuing
operations (diluted) $(0.02) * $(0.60)
Income (loss) from discontinued
operations, net of tax (diluted) (0.00) * (0.01)
----- -----
Consolidated net income (loss)
attributable to common stockholders
(diluted) $(0.03) * $(0.61)
====== ======

SELECTED OTHER DATA
Station operating income(1) $74,510 $79,524
Station operating income margin (% of
net revenue) 35.7% 38.8%

Station operating income
reconciliation:

Consolidated net income (loss)
attributable to common stockholders $(1,482) $(37,998)
Add back non-station operating
income items included in
consolidated net income (loss):
Interest income (95) (98)
Interest expense 31,059 29,036
Provision for (benefit from) income
taxes 4,685 7,340
Corporate selling, general and
administrative expenses 20,537 15,034
Stock-based compensation 4,877 1,387
Gain on retirement of debt - (1,221)
Equity in income of affiliated
company (3,832) (3,294)
Other expense, net 2,934 96
Depreciation and amortization 14,195 15,804
Noncontrolling interest in income of
subsidiaries 1,427 3,650
Impairment of long-lived assets - 48,953
Loss from discontinued operations,
net of tax 205 835
--- ---
Station operating income $74,510 $79,524
======= =======

Adjusted EBITDA(5) $53,973 $64,490

Adjusted EBITDA reconciliation:

Net income (loss) attributable to
common stockholders $(1,482) $(37,998)
Interest income (95) (98)
Interest expense 31,059 29,036
Provision for (benefit from) income
taxes 4,685 7,340
Depreciation and amortization 14,195 15,804
------ ------
EBITDA $48,362 $14,084
Stock-based compensation 4,877 1,387
Gain on retirement of debt - (1,221)
Equity in income of affiliated
company (3,832) (3,294)
Other expense, net 2,934 96
Noncontrolling interest in income of
subsidiaries 1,427 3,650
Impairment of long-lived assets - 48,953
Loss from discontinued operations,
net of tax 205 835
--- ---
Adjusted EBITDA $53,973 $64,490
======= =======

*Per share amounts do not add due to rounding.

September 30, December 31,
2010 2009
-------------- -------------
(unaudited)
-----------
(in thousands)
--------------
SELECTED BALANCE SHEET DATA:
Cash and cash equivalents $21,571 $19,963
Intangible assets, net 872,794 871,221
Total assets 1,044,384 1,035,542
Total debt (including current
portion) 653,138 653,534
Total liabilities 791,183 787,489
Total stockholders' equity 209,154 195,828
Redeemable noncontrolling
interests 44,047 52,225

Current Applicable
Amount Interest
Outstanding Rate (a)
------------ -----------
(in
thousands)
-----------
SELECTED LEVERAGE AND SWAP DATA:
Senior bank term debt (swap
matures June 16, 2012) (a) $25,000 10.68%
Senior bank term and revolving
debt (subject to variable
rates) (b) 325,628 6.50%
8-7/8% senior subordinated
notes (fixed rate) 101,510 8.88%
6-3/8% senior subordinated
notes (fixed rate) 200,000 6.38%
Note payable (fixed rate) 1,000 7.00%

(a) A total of $25.0 million is subject to a fixed rate
swap agreement that became effective in June 2005. Under
our fixed rate swap agreement, we pay a fixed rate plus a
spread based on our leverage ratio, as defined in our
Credit Agreement. That spread is currently set at 3.25%
and is incorporated into the applicable interest rates set
forth above.

(b) Subject to variable Prime Rate plus a spread currently
set at 3.25% and incorporated into the applicable interest
rate set forth above. This tranche is not covered by a
swap agreement described in footnote (a).

Cautionary Note Regarding Forward-Looking Statements

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

Net revenue decreased minimally to approximately $74.5 million for the quarter ended September 30, 2010, from approximately $74.7 million for the same period in 2009, a decrease of 0.2%. We continue to see improvements in the radio industry compared to last year, with the markets that we operate in growing 6.2% for the quarter, and 6.6% year to date. Similar to last quarter, national revenue continued to lead the recovery in our radio marketplaces for the quarter, with growth of 9.7%, while local revenue grew 4.0%. Overall, our radio clusters underperformed their marketplaces this quarter, with growth of 3.1% in national revenue and a decline of 1.3% in local revenue. More specifically, our Charlotte, Columbus, Dallas, Detroit, Houston and St. Louis markets posted strong double-digit quarterly growth, while our Cleveland, Washington, DC and Baltimore markets declined for the quarter. Total core radio revenue (radio stations and syndicated programs excluding Reach Media) held constant for the quarter over the same period in 2009. While Reach Media's revenue declined 3.2% in the quarter, this decline was an improvement from those experienced during the first and second quarters of 2010. Reach Media revenues declined following the December 31, 2009 expiration of a sales representation agreement with Citadel Broadcasting Corporation ("Citadel") whereby a minimum level of revenue was guaranteed over the term of the agreement. Effective January 1, 2010, Reach Media's newly established sales organization began selling its inventory on the Tom Joyner Morning Show and under a new commission-based sales representation agreement with Citadel, which sells certain inventory owned by Reach Media in connection with its 105 radio station affiliate agreements. We continue to deliver very strong growth from our internet business, including Community Connect LLC ("CCI"), which posted 23.5% growth for the quarter.

Operating expenses, excluding depreciation and amortization and stock-based compensation, increased to approximately $51.7 million for the quarter ended September 30, 2010, up 10.7% from the approximately $46.7 million incurred for the comparable quarter in 2009. Similar to last quarter, the spending increases continue to occur in selling, general and administrative and corporate departments. The spending increases are mostly payroll related and are a result of the non-recurrence of vacation expense savings from mandatory office closings and changes to the Company's vacation plan in 2009, and increased spending as a part of salary expense with the restoration of salaries from the 2009 reduced levels, additional commissions and bonuses. Higher representative fees, additional spending for research, and increased bad debt expense continue to contribute to increased expenses.

Stock-based compensation increased to approximately $908,000 for the quarter ended September 30, 2010, compared to $302,000 for the same period in 2009. Increased stock-based compensation expense was due to a long-term incentive plan whereby officers and certain key employees were granted a total of 3,250,000 shares of restricted stock in January of 2010. Stock-based compensation requires measurement of compensation costs for all stock-based awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest.

Depreciation and amortization expense decreased to approximately $4.6 million compared to approximately $5.3 million for the quarters ended September 30, 2010 and 2009, respectively, a decrease of 13.2%. The decrease is attributable to the completion of amortization for certain CCI intangible assets and the completion of useful lives for certain assets.

Interest expense increased to approximately $12.1 million for the quarter ended September 30, 2010, from approximately $9.2 million for the same period in 2009, an increase of 31.5%. The increase in interest expense for the three months ended September 30, 2010 was due primarily to higher principal balances and higher interest rates that took effect as a result of both entering into the third amendment to our Credit Agreement in March 2010 as well as defaults under our credit agreement that occurred as of each of June 30, 2010 and July 1, 2010.

Equity in income of affiliated company increased to approximately $1.8 million for the quarter ended September 30, 2010, compared to $1.4 million for the same period in 2009, an increase of 28.6%. The amounts are attributable primarily to additional net income generated by TV One, LLC for the third quarter of 2010 versus the comparable period in 2009, and inception to date dividend distributions made by TV One. The Company's share of the net income is driven by TV One's current capital structure and the Company's percentage ownership of the equity securities of TV One.

Income tax expense increased to $4.8 million for the quarter ended September 30, 2010, compared to a benefit from income taxes of $1.5 million for the same quarter in 2009. Income taxes increased by approximately $5.0 million related to the change in the deferred tax liability ("DTL") for indefinite-lived intangibles, offset by a decrease of $681,000 due to reduced pre-tax book income for Reach Media. . The Company continues to maintain a full valuation allowance for entities other than Reach Media for its deferred tax assets ("DTAs"), including the DTA associated with its net operating loss carryforward. The consolidated effective tax rate for the three months ended September 30, 2010 and 2009 was 68.7% and (10.4%), respectively.

Loss from discontinued operations, net of tax, includes the results of operations for our sold radio stations and Giant Magazine, which ceased publication in December 2009. The loss from discontinued operations, net of tax, for the quarters ended September 30, 2010 and 2009 of $125,000 and $90,000, respectively, resulted from legal and litigation expenses incurred as a result of ongoing legal activity related to certain previously sold stations. The loss from discontinued operations, net of tax, also includes no tax provision for the three months ended September 30, 2010 and a benefit from income taxes of $92,000 for the three months ended September 30, 2009.

Other pertinent financial information includes capital expenditures of approximately $1.5 million and $1.7 million for the quarters ended September 30, 2010 and 2009, respectively. In addition, as of September 30, 2010, Radio One had total debt (net of cash balances) of approximately $631.6 million.

Supplemental Financial Information:

For comparative purposes, the following more detailed and unaudited statements of operations for the three and nine months ended September 30, 2010 and 2009 are included. These detailed, unaudited and adjusted statements of operations include certain reclassifications associated with accounting for discontinued operations. 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, 2010
-------------------------------------
(in thousands, unaudited)
-------------------------

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

STATEMENT OF
OPERATIONS:

NET REVENUE $74,491 $57,967
OPERATING EXPENSES:
Programming and
technical 18,811 13,007
Selling, general and
administrative 27,366 20,674
Corporate selling,
general and
administrative 5,488 -
Stock-based
compensation 908 127
Depreciation and
amortization 4,625 2,042
----- -----
Total operating
expenses 57,198 35,850
------ ------
Operating income
(loss) 17,293 22,117
INTEREST INCOME 28 -
INTEREST EXPENSE 12,122 -
EQUITY IN INCOME OF
AFFILIATED COMPANY 1,784 -
OTHER EXPENSE, net 50 -
--- ---
Income (loss)
before
provision for
income taxes,
noncontrolling
interest in
income of
subsidiaries
and (loss)
income from
discontinued
operations 6,933 22,117
PROVISION FOR INCOME
TAXES 4,760 3,860
----- -----
Net income
(loss) from
continuing
operations 2,173 18,257
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of
tax (125) (144)
---- ----
CONSOLIDATED NET
INCOME (LOSS) 2,048 18,113
NONCONTROLLING
INTEREST IN INCOME OF
SUBSIDIARIES 1,010 -
----- ---
CONSOLIDATED NET
INCOME (LOSS)
ATTRIBUTABLE TO
COMMON STOCKHOLDERS $1,038 $18,113
====== =======

Reach Internet
----- --------
Media
-----

STATEMENT OF
OPERATIONS:

NET REVENUE $14,092 $4,382
OPERATING EXPENSES:
Programming and
technical 5,072 2,376
Selling, general and
administrative 4,164 3,263
Corporate selling,
general and
administrative 1,318 -
Stock-based
compensation - 24
Depreciation and
amortization 1,089 1,222
----- -----
Total operating
expenses 11,643 6,885
------ -----
Operating income
(loss) 2,449 (2,503)
INTEREST INCOME 16 -
INTEREST EXPENSE 18 -
EQUITY IN INCOME OF
AFFILIATED COMPANY - -
OTHER EXPENSE, net - 48
--- ---
Income (loss)
before
provision for
income taxes,
noncontrolling
interest in
income of
subsidiaries
and (loss)
income from
discontinued
operations 2,447 (2,551)
PROVISION FOR INCOME
TAXES 900 -
--- ---
Net income
(loss) from
continuing
operations 1,547 (2,551)
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of
tax - 19
--- ---
CONSOLIDATED NET
INCOME (LOSS) 1,547 (2,532)
NONCONTROLLING
INTEREST IN INCOME OF
SUBSIDIARIES - -
--- ---
CONSOLIDATED NET
INCOME (LOSS)
ATTRIBUTABLE TO
COMMON STOCKHOLDERS $1,547 $(2,532)
====== =======

Corporate/

Eliminations/

Other
-----

STATEMENT OF
OPERATIONS:

NET REVENUE $(1,950)
OPERATING EXPENSES:
Programming and
technical (1,644)
Selling, general and
administrative (735)
Corporate selling,
general and
administrative 4,170
Stock-based
compensation 757
Depreciation and
amortization 272
---
Total operating
expenses 2,820
-----
Operating income
(loss) (4,770)
INTEREST INCOME 12
INTEREST EXPENSE 12,104
EQUITY IN INCOME OF
AFFILIATED COMPANY 1,784
OTHER EXPENSE, net 2
---
Income (loss)
before
provision for
income taxes,
noncontrolling
interest in
income of
subsidiaries
and (loss)
income from
discontinued
operations (15,080)
PROVISION FOR INCOME
TAXES -
---
Net income
(loss) from
continuing
operations (15,080)
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of
tax -
---
CONSOLIDATED NET
INCOME (LOSS) (15,080)
NONCONTROLLING
INTEREST IN INCOME OF
SUBSIDIARIES 1,010
-----
CONSOLIDATED NET
INCOME (LOSS)
ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(16,090)
========

Three Months Ended September 30, 2009
-------------------------------------
(in thousands, unaudited, as adjusted)(2)
-----------------------------------------

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

STATEMENT OF OPERATIONS:

NET REVENUE $74,651 $57,989
OPERATING EXPENSES:
Programming and technical 17,994 12,628
Selling, general and
administrative 23,964 18,067
Corporate selling,
general and
administrative 4,702 -
Stock-based compensation 302 53
Depreciation and
amortization 5,337 2,419
Total operating expenses 52,299 33,167
------ ------
Operating income (loss) 22,352 24,822
INTEREST INCOME 33 -
INTEREST EXPENSE 9,224 -
EQUITY IN INCOME OF
AFFILIATED COMPANY 1,397 -
OTHER EXPENSE, net 38 6
--- ---
Income (loss)
before (benefit
from) provision
for income
taxes,
noncontrolling
interest in
income of
subsidiaries and
(loss) income
from
discontinued
operations 14,520 24,816
(BENEFIT FROM) PROVISION
FOR INCOME TAXES (1,508) (3,123)
------ ------
Net income (loss)
from continuing
operations 16,028 27,939
(LOSS) INCOME FROM
DISCONTINUED OPERATIONS,
net of tax (90) (180)
--- ----
CONSOLIDATED NET INCOME
(LOSS) 15,938 27,759
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES 1,712 -
CONSOLIDATED NET INCOME
(LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $14,226 $27,759
======= =======

Reach Internet
----- --------
Media
-----

STATEMENT OF OPERATIONS:

NET REVENUE $14,552 $3,548
OPERATING EXPENSES:
Programming and technical 4,727 1,604
Selling, general and
administrative 3,490 3,221
Corporate selling,
general and
administrative 811 -
Stock-based compensation - -
Depreciation and
amortization 983 1,615
Total operating expenses 10,011 6,440
------ -----
Operating income (loss) 4,541 (2,892)
INTEREST INCOME 17 -
INTEREST EXPENSE - -
EQUITY IN INCOME OF
AFFILIATED COMPANY - -
OTHER EXPENSE, net - 32
--- ---
Income (loss)
before (benefit
from) provision
for income
taxes,
noncontrolling
interest in
income of
subsidiaries and
(loss) income
from
discontinued
operations 4,558 (2,924)
(BENEFIT FROM) PROVISION
FOR INCOME TAXES 1,615 -
----- ---
Net income (loss)
from continuing
operations 2,943 (2,924)
(LOSS) INCOME FROM
DISCONTINUED OPERATIONS,
net of tax - (81)
--- ---
CONSOLIDATED NET INCOME
(LOSS) 2,943 (3,005)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES - -
CONSOLIDATED NET INCOME
(LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $2,943 $(3,005)
====== =======

Corporate/

Eliminations/

Other
-----

STATEMENT OF OPERATIONS:

NET REVENUE $(1,438)
OPERATING EXPENSES:
Programming and technical (965)
Selling, general and
administrative (814)
Corporate selling,
general and
administrative 3,891
Stock-based compensation 249
Depreciation and
amortization 320
Total operating expenses 2,681
-----
Operating income (loss) (4,119)
INTEREST INCOME 16
INTEREST EXPENSE 9,224
EQUITY IN INCOME OF
AFFILIATED COMPANY 1,397
OTHER EXPENSE, net -
---
Income (loss)
before (benefit
from) provision
for income
taxes,
noncontrolling
interest in
income of
subsidiaries and
(loss) income
from
discontinued
operations (11,930)
(BENEFIT FROM) PROVISION
FOR INCOME TAXES -
---
Net income (loss)
from continuing
operations (11,930)
(LOSS) INCOME FROM
DISCONTINUED OPERATIONS,
net of tax 171
---
CONSOLIDATED NET INCOME
(LOSS) (11,759)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES 1,712
CONSOLIDATED NET INCOME
(LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(13,471)
========

Nine Months Ended September 30, 2010
------------------------------------
(in thousands, unaudited)
-------------------------

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

STATEMENT OF OPERATIONS:

NET REVENUE $208,703 $169,576
OPERATING EXPENSES:
Programming and technical 56,736 39,183
Selling, general and
administrative 77,457 61,866
Corporate selling, general
and administrative 20,537 -
Stock-based compensation 4,877 696
Depreciation and
amortization 14,195 6,331
------ -----
Total operating expenses 173,802 108,076
------- -------
Operating income (loss) 34,901 61,500
INTEREST INCOME 95 -
INTEREST EXPENSE 31,059 -
EQUITY IN INCOME OF
AFFILIATED COMPANY 3,832 -
OTHER EXPENSE (INCOME),
net 2,934 (231)
----- ----
Income (loss)
before provision
for income taxes,
noncontrolling
interest in
income of
subsidiaries and
(loss) income
from discontinued
operations 4,835 61,731
PROVISION FOR INCOME TAXES 4,685 3,926
----- -----
Net income (loss)
from continuing
operations 150 57,805
(LOSS) INCOME FROM
DISCONTINUED OPERATIONS,
net of tax (205) (464)
---- ----
CONSOLIDATED NET INCOME
(LOSS) (55) 57,341
NONCONTROLLING INTEREST IN
INCOME OF SUBSIDIARIES 1,427 -
----- ---
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(1,482) $57,341
======= =======

Reach Internet
----- --------
Media
-----

STATEMENT OF OPERATIONS:

NET REVENUE $32,523 $12,330
OPERATING EXPENSES:
Programming and technical 15,102 7,161
Selling, general and
administrative 7,412 10,503
Corporate selling, general
and administrative 4,833 -
Stock-based compensation - 137
Depreciation and
amortization 3,160 3,853
----- -----
Total operating expenses 30,507 21,654
------ ------
Operating income (loss) 2,016 (9,324)
INTEREST INCOME 51 -
INTEREST EXPENSE 54 -
EQUITY IN INCOME OF
AFFILIATED COMPANY - -
OTHER EXPENSE (INCOME),
net - 159
--- ---
Income (loss)
before provision
for income taxes,
noncontrolling
interest in
income of
subsidiaries and
(loss) income
from discontinued
operations 2,013 (9,483)
PROVISION FOR INCOME TAXES 759 -
--- ---
Net income (loss)
from continuing
operations 1,254 (9,483)
(LOSS) INCOME FROM
DISCONTINUED OPERATIONS,
net of tax - 259
--- ---
CONSOLIDATED NET INCOME
(LOSS) 1,254 (9,224)
NONCONTROLLING INTEREST IN
INCOME OF SUBSIDIARIES - -
--- ---
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $1,254 $(9,224)
====== =======

Corporate/

Eliminations/

Other
-----

STATEMENT OF OPERATIONS:

NET REVENUE $(5,726)
OPERATING EXPENSES:
Programming and technical (4,710)
Selling, general and
administrative (2,324)
Corporate selling, general
and administrative 15,704
Stock-based compensation 4,044
Depreciation and
amortization 851
---
Total operating expenses 13,565
------
Operating income (loss) (19,291)
INTEREST INCOME 44
INTEREST EXPENSE 31,005
EQUITY IN INCOME OF
AFFILIATED COMPANY 3,832
OTHER EXPENSE (INCOME),
net 3,006
-----
Income (loss)
before provision
for income taxes,
noncontrolling
interest in
income of
subsidiaries and
(loss) income
from discontinued
operations (49,426)
PROVISION FOR INCOME TAXES -
---
Net income (loss)
from continuing
operations (49,426)
(LOSS) INCOME FROM
DISCONTINUED OPERATIONS,
net of tax -
---
CONSOLIDATED NET INCOME
(LOSS) (49,426)
NONCONTROLLING INTEREST IN
INCOME OF SUBSIDIARIES 1,427
-----
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(50,853)
========

Nine Months Ended September 30, 2009
------------------------------------
(in thousands, unaudited, as adjusted) (2)
------------------------------------------

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

STATEMENT OF OPERATIONS:

NET REVENUE $204,835 $162,798
OPERATING EXPENSES:
Programming and
technical 56,768 39,204
Selling, general and
administrative 68,543 55,107
Corporate selling,
general and
administrative 15,034 -
Stock-based
compensation 1,387 366
Depreciation and
amortization 15,804 7,155
Impairment of long-
lived assets 48,953 48,953
------ ------
Total operating expenses 206,489 150,785
------- -------
Operating (loss) income (1,654) 12,013
INTEREST INCOME 98 -
INTEREST EXPENSE 29,036 -
GAIN ON RETIREMENT OF
DEBT 1,221 -
EQUITY IN INCOME OF
AFFILIATED COMPANY 3,294 -
OTHER EXPENSE (INCOME),
net 96 115
--- ---
(Loss) income
before
provision for
income taxes,
noncontrolling
interest in
income of
subsidiaries
and (loss)
income from
discontinued
operations (26,173) 11,898
PROVISION FOR INCOME
TAXES 7,340 4,191
----- -----
Net (loss)
income from
continuing
operations (33,513) 7,707
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of tax (835) (19)
---- ---
CONSOLIDATED NET (LOSS)
INCOME (34,348) 7,688
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES 3,650 -
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(37,998) $7,688
======== ======

Reach Internet
----- --------
Media
-----

STATEMENT OF OPERATIONS:

NET REVENUE $36,055 $10,027
OPERATING EXPENSES:
Programming and
technical 14,105 6,348
Selling, general and
administrative 5,800 9,827
Corporate selling,
general and
administrative 4,333 -
Stock-based
compensation - -
Depreciation and
amortization 2,946 4,785
Impairment of long-
lived assets - -
--- ---
Total operating expenses 27,184 20,960
------ ------
Operating (loss) income 8,871 (10,933)
INTEREST INCOME 41 -
INTEREST EXPENSE 1 3
GAIN ON RETIREMENT OF
DEBT - -
EQUITY IN INCOME OF
AFFILIATED COMPANY - -
OTHER EXPENSE (INCOME),
net - (39)
--- ---
(Loss) income
before
provision for
income taxes,
noncontrolling
interest in
income of
subsidiaries
and (loss)
income from
discontinued
operations 8,911 (10,897)
PROVISION FOR INCOME
TAXES 3,149 -
----- ---
Net (loss)
income from
continuing
operations 5,762 (10,897)
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of tax - (1,114)
--- ------
CONSOLIDATED NET (LOSS)
INCOME 5,762 (12,011)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES - -
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $5,762 $(12,011)
====== ========

Corporate/

Eliminations/

Other
-----

STATEMENT OF OPERATIONS:

NET REVENUE $(4,045)
OPERATING EXPENSES:
Programming and
technical (2,889)
Selling, general and
administrative (2,191)
Corporate selling,
general and
administrative 10,701
Stock-based
compensation 1,021
Depreciation and
amortization 918
Impairment of long-
lived assets -
---
Total operating expenses 7,560
-----
Operating (loss) income (11,605)
INTEREST INCOME 57
INTEREST EXPENSE 29,032
GAIN ON RETIREMENT OF
DEBT 1,221
EQUITY IN INCOME OF
AFFILIATED COMPANY 3,294
OTHER EXPENSE (INCOME),
net 20
---
(Loss) income
before
provision for
income taxes,
noncontrolling
interest in
income of
subsidiaries
and (loss)
income from
discontinued
operations (36,085)
PROVISION FOR INCOME
TAXES -
---
Net (loss)
income from
continuing
operations (36,085)
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of tax 298
---
CONSOLIDATED NET (LOSS)
INCOME (35,787)
NONCONTROLLING INTEREST
IN INCOME OF
SUBSIDIARIES 3,650
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(39,437)
========

The Company announced during its 2009 fourth quarter conference call that it would continue to hold only an annual conference call as opposed to quarterly conference calls for the fiscal year 2010. Thus, no conference call is scheduled for discussion of the third quarter results.

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

Notes:

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

2 Certain reclassifications associated with accounting for discontinued operations have been made to prior period balances to conform to the current presentation. These reclassifications had no effect on any other previously reported or 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 adjusted."

3 For the three months ended September 30, 2010 and 2009, Radio One had 52,064,108 and 56,242,964 shares of common stock outstanding on a weighted average basis (basic), and 54,262,885 and 56,684,369 shares of common stock outstanding on a weighted average basis (fully diluted) for outstanding stock options, respectively.

4 For the nine months ended September 30, 2010 and 2009, Radio One had 51,316,498 and 61,873,161 shares of common stock outstanding on a weighted average basis, both basic and fully diluted for outstanding stock options, respectively.

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

SOURCE Radio One, Inc.

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Radio One, Inc.

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

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