Radio One, Inc. Reports Second Quarter Results

Radio One, Inc. Reports Second Quarter Results

WASHINGTON, Aug. 4, 2011 /PRNewswire/ -- Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended June 30, 2011. Net revenue was approximately $97.1 million, an increase of 29.3% from the same period in 2010. Station operating income (1) was approximately $34.8 million, an increase of 22.5% from the same period in 2010. The Company reported operating income of approximately $15.8 million compared to operating income of approximately $13.8 million for the same period in 2010. The Company recorded a non-cash pre-tax gain of approximately $146.9 million resulting from its increased ownership and controlling interest in TV One which led to net income of approximately $98.6 million or $1.94 per share, compared to net income of approximately $2.0 million or $0.04 per share for the same period in 2010.

(Logo: http://photos.prnewswire.com/prnh/20090806/PH57529LOGO )

Alfred C. Liggins, III, Radio One's CEO and President stated, "The addition of Cable Television to our segment reporting for the first time in Q2 demonstrates the continued evolution of Radio One: core radio revenues for Q2 now represent approximately 62% of the Company's revenues. Our radio performance suffered from difficult competitive situations in Dallas and Houston, and sluggish economic recovery in our Mid-West markets. Our on-line and mobile product offerings continue to develop, and our losses at Interactive One narrowed considerably from the same period last year. I anticipate radio revenues in the third quarter to remain relatively flat, and we continue to focus on controlling the cost base, while developing other revenue streams."

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

Three Months Ended June
30,
------------------------
2011 2010
---- ----
(as
adjusted)
(2)
----------
STATEMENT OF OPERATIONS (unaudited)
-----------
(in thousands, except
share data)
----------------------

NET REVENUE $97,062 $75,146
OPERATING EXPENSES
Programming and technical 30,718 19,294
Selling, general and
administrative, excluding stock-
based compensation 31,594 27,464
Corporate selling, general and
administrative, excluding stock-
based compensation 7,523 7,764
Stock-based compensation 1,199 1,956
Depreciation and amortization 10,238 4,837
------ -----
Total operating expenses 81,272 61,315
------ ------
Operating Income 15,790 13,831
INTEREST INCOME 9 43
INTEREST EXPENSE 22,916 9,703
GAIN ON INVESTMENT IN AFFILIATED
COMPANY 146,879 -
LOSS ON RETIREMENT OF DEBT - -
EQUITY IN INCOME OF AFFILIATED
COMPANY 208 1,139
OTHER EXPENSE, net 47 2,406
--- -----
Income (loss) before provision for
(benefit from) income taxes,
noncontrolling interest in income
of subsidiaries and loss from
discontinued operations 139,923 2,904
PROVISION FOR (BENEFIT FROM)
INCOME TAXES 38,611 233
------ ---
Net income (loss) from continuing
operations 101,312 2,671
LOSS FROM DISCONTINUED OPERATIONS,
net of tax (45) (177)
--- ----
CONSOLIDATED NET INCOME (LOSS) 101,267 2,494
NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 2,717 446
----- ---
CONSOLIDATED NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $98,550 $2,048
======= ======

AMOUNTS ATTRIBUTABLE TO COMMON
STOCKHOLDERS:
NET INCOME (LOSS) FROM CONTINUING
OPERATIONS $98,595 $2,225
LOSS FROM DISCONTINUED OPERATIONS,
net of tax (45) (177)
--- ----
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $98,550 $2,048
======= ======

Weighted average shares
outstanding -basic (3) 50,831,560 51,054,572
Weighted average shares
outstanding -diluted (4) 52,905,060 54,302,885

Six Months Ended June
30,
----------------------
2011 2010
---- ----
(as
adjusted)
(2)
----------
STATEMENT OF OPERATIONS (unaudited)
-----------
(in thousands, except
share data)
----------------------

NET REVENUE $162,070 $134,126
OPERATING EXPENSES
Programming and technical 49,549 37,829
Selling, general and
administrative, excluding stock-
based compensation 59,925 50,047
Corporate selling, general and
administrative, excluding stock-
based compensation 14,772 15,049
Stock-based compensation 2,136 3,969
Depreciation and amortization 14,321 9,545
------ -----
Total operating expenses 140,703 116,439
------- -------
Operating Income 21,367 17,687
INTEREST INCOME 17 67
INTEREST EXPENSE 42,249 18,938
GAIN ON INVESTMENT IN AFFILIATED
COMPANY 146,879 -
LOSS ON RETIREMENT OF DEBT 7,743 -
EQUITY IN INCOME OF AFFILIATED
COMPANY 3,287 2,048
OTHER EXPENSE, net 22 2,883
--- -----
Income (loss) before provision for
(benefit from) income taxes,
noncontrolling interest in income
of subsidiaries and loss from
discontinued operations 121,536 (2,019)
PROVISION FOR (BENEFIT FROM) INCOME
TAXES 84,230 (75)
------ ---
Net income (loss) from continuing
operations 37,306 (1,944)
LOSS FROM DISCONTINUED OPERATIONS,
net of tax (81) (159)
--- ----
CONSOLIDATED NET INCOME (LOSS) 37,225 (2,103)
NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 2,920 417
----- ---
CONSOLIDATED NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $34,305 $(2,520)
======= =======

AMOUNTS ATTRIBUTABLE TO COMMON
STOCKHOLDERS:
NET INCOME (LOSS) FROM CONTINUING
OPERATIONS $34,386 $(2,361)
LOSS FROM DISCONTINUED OPERATIONS,
net of tax (81) (159)
--- ----
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $34,305 $(2,520)
======= =======

Weighted average shares outstanding
-basic (3) 51,474,556 50,942,693
Weighted average shares outstanding
-diluted (4) 53,646,473 50,942,693

Three Months
Ended June 30,
--------------
2011 2010
---- ----
(as
adjusted)(2)
-------------
(unaudited)
-----------
(in thousands,
except per share
data)
-----------------
PER SHARE DATA - basic and diluted:

Net income (loss) from continuing
operations (basic) $1.94 $0.04
Income (loss) from discontinued
operations, net of tax (basic) (0.00) (0.00)
----- -----
Consolidated net income (loss)
attributable to common stockholders
(basic) $1.94 $0.04
===== =====

Net income (loss) from continuing
operations (diluted) $1.86 $0.04
Income (loss) from discontinued
operations, net of tax (diluted) (0.00) (0.00)
----- -----
Consolidated net income (loss)
attributable to common stockholders
(diluted) $1.86 $0.04
===== =====

SELECTED OTHER DATA
Station operating income (1) $34,750 $28,388
Station operating income margin (% of
net revenue) 35.8% 37.8%

Station operating income reconciliation:

Consolidated net income (loss)
attributable to common stockholders $98,550 $2,048
Add back non-station operating income
items included in consolidated net
income (loss):
Interest income (9) (43)
Interest expense 22,916 9,703
Provision for (benefit from) income
taxes 38,611 233
Corporate selling, general and
administrative expenses 7,523 7,764
Stock-based compensation 1,199 1,956
Gain on investment in affiliated company (146,879) -
Loss on retirement of debt - -
Equity in income of affiliated company (208) (1,139)
Other expense, net 47 2,406
Depreciation and amortization 10,238 4,837
Noncontrolling interest in income of
subsidiaries 2,717 446
Loss from discontinued operations, net
of tax 45 177
Station operating income $34,750 $28,388
======= =======

Adjusted EBITDA (5) $27,227 $20,624

Adjusted EBITDA reconciliation:

Consolidated net income (loss)
attributable to common stockholders $98,550 $2,048
Interest income (9) (43)
Interest expense 22,916 9,703
Provision for (benefit from) income
taxes 38,611 233
Depreciation and amortization 10,238 4,837
------ -----
EBITDA $170,306 $16,778
Stock-based compensation 1,199 1,956
Gain on investment in affiliated company (146,879) -
Loss on retirement of debt - -
Equity in income of affiliated company (208) (1,139)
Other expense, net 47 2,406
Noncontrolling interest in income of
subsidiaries 2,717 446
Loss from discontinued operations, net
of tax 45 177
--- ---
Adjusted EBITDA $27,227 $20,624
======= =======

Six Months Ended
June 30,
----------------
2011 2010
---- ----
(as
adjusted)(2)
-------------
(unaudited)
-----------
(in thousands,
except per share
data)
-----------------
PER SHARE DATA - basic and diluted:

Net income (loss) from continuing
operations (basic) $0.67 $(0.05)
Income (loss) from discontinued
operations, net of tax (basic) $(0.00) (0.00)
------ -----
Consolidated net income (loss)
attributable to common stockholders
(basic) $0.67 $(0.05)
===== ======

Net income (loss) from continuing
operations (diluted) $0.64 $(0.05)
Income (loss) from discontinued
operations, net of tax (diluted) (0.00) (0.00)
----- -----
Consolidated net income (loss)
attributable to common stockholders
(diluted) $0.64 $(0.05)
===== ======

SELECTED OTHER DATA
Station operating income (1) $52,596 $46,250
Station operating income margin (% of
net revenue) 32.5% 34.5%

Station operating income reconciliation:

Consolidated net income (loss)
attributable to common stockholders $34,305 $(2,520)
Add back non-station operating income
items included in consolidated net
income (loss):
Interest income (17) (67)
Interest expense 42,249 18,938
Provision for (benefit from) income
taxes 84,230 (75)
Corporate selling, general and
administrative expenses 14,772 15,049
Stock-based compensation 2,136 3,969
Gain on investment in affiliated company (146,879) -
Loss on retirement of debt 7,743 -
Equity in income of affiliated company (3,287) (2,048)
Other expense, net 22 2,883
Depreciation and amortization 14,321 9,545
Noncontrolling interest in income of
subsidiaries 2,920 417
Loss from discontinued operations, net
of tax 81 159
Station operating income $52,596 $46,250
======= =======

Adjusted EBITDA (5) $37,824 $31,201

Adjusted EBITDA reconciliation:

Consolidated net income (loss)
attributable to common stockholders $34,305 $(2,520)
Interest income (17) (67)
Interest expense 42,249 18,938
Provision for (benefit from) income
taxes 84,230 (75)
Depreciation and amortization 14,321 9,545
------ -----
EBITDA $175,088 $25,821
Stock-based compensation 2,136 3,969
Gain on investment in affiliated company (146,879) -
Loss on retirement of debt 7,743 -
Equity in income of affiliated company (3,287) (2,048)
Other expense, net 22 2,883
Noncontrolling interest in income of
subsidiaries 2,920 417
Loss from discontinued operations, net
of tax 81 159
--- ---
Adjusted EBITDA $37,824 $31,201
======= =======

June 30, December
2011 31, 2010
--------- --------
(as
(unaudited) adjusted)
----------- ----------
(in thousands)
--------------
SELECTED BALANCE SHEET DATA:
Cash and cash equivalents $29,889 $9,192
Intangible assets, net 1,243,688 840,147
Total assets 1,524,316 999,212
Total debt (including current
portion) 797,633 642,222
Total liabilities 1,062,155 774,242
Total stockholders' equity 227,347 194,335
Redeemable noncontrolling interest 28,736 30,635
Noncontrolling interest 206,078 -

Current Applicable
Amount Interest
Outstanding Rate
------------ -----------
(in
thousands)
-----------
SELECTED LEVERAGE DATA:
Senior bank term debt, net or
original issue discount of
approximately $7.3 million
(subject to variable rates) (a) $377,701 7.50%
12 1/2%/15% senior subordinated
notes (fixed rate) 299,185 15.00%
6 3/8% senior subordinated notes
(fixed rate) 747 6.38%
10% Senior Secured Notes due March
2016 (fixed rate) [TV One] 119,000 10.00%
Note payable (fixed rate) 1,000 7.00%

(a) Subject to variable Libor Rate plus a spread currently at 6.00%
and 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 Form 10-K and other filings with the Securities and Exchange Commission. Radio One does not undertake any duty to update any forward-looking statements.

Net revenue increased to approximately $97.1 million for the quarter ended June 30, 2011, from approximately $75.1 million for the same period in 2010, an increase of 29.3%. The radio industry modestly improved relative to last year, with the markets that we operate in growing 1.5% for the quarter, and 2.9% for the first half of the year. Local revenue continued to lead the recovery in our radio marketplaces for the quarter, with growth of 1.4%, while national revenue in our radio marketplaces decreased 0.7% for the quarter. On average, our radio clusters underperformed their marketplaces by 500 basis points this quarter, with a decline in both local revenue and national revenue. More specifically, our Atlanta, Charlotte, Cincinnati, Detroit and St. Louis clusters posted quarterly growth, while our Baltimore, Columbus, Dallas and Houston markets posted the most significant declines. Total core radio revenue (radio stations and syndicated programs excluding Reach Media) declined 3.4% during the quarter. Reach Media net revenue declined 6.2%, primarily due to the change in date for the ongoing cruise event, the "Tom Joyner Fantastic Voyage" (this event was held in March 2011 versus in May 2010). Net revenue for our internet segment declined 3.6% for the three months ended June 30, 2011 compared to the same period in 2010. We began to consolidate the results of TV One during the quarter ended June 30, 2011 and recognized approximately $25.2 million of revenue from our cable television segment.

Operating expenses, excluding depreciation and amortization and stock-based compensation, increased to approximately $69.8 million for the quarter ended June 30, 2011, up 28.1% from the approximately $54.5 million incurred for the comparable quarter in 2010. Most of the spending increase occurred as a result of the TV One consolidation specifically related to programming and technical operating expenses. For our cable television segment, programming and technical expenses include expenses associated with the technical, programming, production, and content management. Approximately $11.8 million of our consolidated programming and technical operating expenses were recognized directly from TV One, with approximately $9.4 million of this amount relating specifically to content amortization. Excluding the impact of consolidating TV One results, our programming and technical expenses would have declined by 1.8% for the quarter compared to the same period in 2010.

Stock-based compensation decreased to approximately $1.2 million for the quarter ended June 30, 2011, compared to approximately $2.0 million for the same period in 2010. This decrease in stock-based compensation expense is due to one-time accelerated vesting that occurred in the second quarter of 2010 associated with the 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.

Depreciation and amortization expense increased to approximately $10.2 million compared to approximately $4.8 million for the quarters ended June 30, 2011 and 2010, respectively, an increase of 112.5%. Additional depreciation and amortization expense of approximately $6.4 million resulted from the fixed and intangible assets recorded as part of the consolidation of TV One. This increased expense was partially offset by the completion of amortization for certain CCI intangible assets and the completion of depreciation and amortization for certain assets.

Interest expense increased to approximately $22.9 million for the quarter ended June 30, 2011, from approximately $9.7 million for the same period in 2010, an increase of 136.1%. The increase in interest expense was due to our entry into the 2011 Credit Agreement on March 31, 2011 and Amended Exchange Offer on November 24, 2010, as well as the consolidation of TV One. Higher interest rates associated with the 2011 Credit Agreement and Amended Exchange Offer were in effect for the three months ended June 30, 2011 compared to the same period in 2010. The increase in the overall effective rate of borrowing for the three months ended June 30, 2011 was approximately 5.6% compared to the three months ended June 30, 2010. Approximately $3.1 million of the increased interest expense relates to the debt recorded as part of the consolidation of TV One.

The gain on investment in affiliated company of approximately $146.9 million for the three months ended June 30, 2011 was due to acquiring the controlling interest in and the accounting impact of consolidating TV One results as of April 14, 2011. The gain is computed as the difference between the book value and the fair value of our investment in TV One at the time we obtained control of TV One.

Other expense of $47,000 for the quarter ended June 30, 2011 compared to other expense of approximately $2.4 million for the quarter ended June 30, 2010. Other expense for the quarter ended June 30, 2010 was principally due to a write off of a pro-rata portion of debt financing and modification costs in connection with the offering of Second-Priority Senior Secured Grid Notes ("Second Lien Notes").

Equity in income of affiliated company decreased to $208,000 for the quarter ended June 30, 2011, compared to approximately $1.1 million for the same period in 2010, a decrease of 81.8%. Equity in income of affiliated company primarily reflects our estimated equity in the net income of TV One. The decrease to equity in income of affiliated company for the three months ended June 30, 2011 was due to the consolidation of TV One during this period. Previously, the Company's share of the net income was driven by TV One's current capital structure and the Company's percentage ownership of the equity securities of TV One.

The provision for income taxes for the quarter ended June 30, 2011 was approximately $38.6 million compared to $233,000 for the quarter ended June 30, 2010. Substantially all of the increase in the tax provision relates to the recognition of a deferred tax liability in connection with the consolidation of TV One. The consolidated effective tax rate for the three months ended June 30, 2011 and 2010 was 27.6% and 8.0%, 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 three months ended June 30, 2011 resulted from the remaining Boston radio station entering into an LMA in June 2011. The loss from discontinued operations, net of tax, for the quarter ended June 30, 2010 of $177,000 resulted primarily 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, includes no tax provision for the three months ended June 30, 2011 and 2010.

The increase in noncontrolling interests in income of subsidiaries is due primarily to the impact of consolidating TV One results for the three months ended June 30, 2011. This amount is partially offset by lower net income generated by Reach Media for the three months ended June 30, 2011 compared to the same period in 2010.

Other pertinent financial information includes capital expenditures of approximately $1.9 million and $1.0 million for the quarters ended June 30, 2011 and 2010, respectively. In addition, as of June 30, 2011, Radio One had total debt (net of cash balances) of approximately $767.7 million.

Supplemental Financial Information:

For comparative purposes, the following more detailed and unaudited statements of operations for the three and six months ended June 30, 2011 and 2010 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 June 30, 2011
--------------------------------
(in thousands, unaudited)
-------------------------
Radio
Consolidated One
------------ ------
STATEMENT OF OPERATIONS:

NET REVENUE $97,062 $60,162
OPERATING EXPENSES:
Programming and technical 30,718 13,291
Selling, general and administrative 31,594 22,792
Corporate selling, general and
administrative 7,523 -
Stock-based compensation 1,199 178
Depreciation and amortization 10,238 1,681
------ -----
Total operating expenses 81,272 37,942
------ ------
Operating income (loss) 15,790 22,220
INTEREST INCOME 9 -
INTEREST EXPENSE 22,916 -
GAIN ON INVESTMENT IN AFFILIATED
COMPANY 146,879 -
EQUITY IN INCOME OF AFFILIATED
COMPANY 208 -
OTHER EXPENSE, net 47 -
--- ---
Income (loss) before
provision for income
taxes, noncontrolling
interest in income of
subsidiaries and loss from
discontinued operations 139,923 22,220
PROVISION FOR INCOME TAXES 38,611 38,461
------ ------
Net income (loss) from
continuing operations 101,312 (16,241)
(LOSS) INCOME FROM DISCONTINUED
OPERATIONS, net of tax (45) (46)
--- ---
CONSOLIDATED NET INCOME (LOSS) 101,267 (16,287)
NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS 2,717 -
----- ---
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $98,550 $(16,287)
======= ========

Three Months Ended June 30, 2011
--------------------------------
(in thousands, unaudited)
-------------------------
Reach
Media Internet
------ --------
STATEMENT OF OPERATIONS:

NET REVENUE $9,774 $4,307
OPERATING EXPENSES:
Programming and technical 5,307 2,274
Selling, general and administrative 1,343 2,518
Corporate selling, general and
administrative 1,670 -
Stock-based compensation - 34
Depreciation and amortization 990 919
---
Total operating expenses 9,310 5,745
----- -----
Operating income (loss) 464 (1,438)
INTEREST INCOME 3 -
INTEREST EXPENSE 17 -
GAIN ON INVESTMENT IN AFFILIATED
COMPANY - -
EQUITY IN INCOME OF AFFILIATED
COMPANY - -
OTHER EXPENSE, net - -
--- ---
Income (loss) before
provision for income
taxes, noncontrolling
interest in income of
subsidiaries and loss from
discontinued operations 450 (1,438)
PROVISION FOR INCOME TAXES 150 -
--- ---
Net income (loss) from
continuing operations 300 (1,438)
(LOSS) INCOME FROM DISCONTINUED
OPERATIONS, net of tax - 1
--- ---
CONSOLIDATED NET INCOME (LOSS) 300 (1,437)
NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS - -
---
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $300 $(1,437)
==== =======

Three Months Ended June 30, 2011
--------------------------------
(in thousands, unaudited)
-------------------------

Cable Corporate/

----- Eliminations/
Television Other
---------- -----
STATEMENT OF OPERATIONS:

NET REVENUE $25,166 $(2,347)
OPERATING EXPENSES:
Programming and technical 11,773 (1,927)
Selling, general and administrative 5,813 (872)
Corporate selling, general and
administrative (84) 5,937
Stock-based compensation - 987
Depreciation and amortization 6,429 219
Total operating expenses 23,931 4,344
------ -----
Operating income (loss) 1,235 (6,691)
INTEREST INCOME 5 1
INTEREST EXPENSE 3,148 19,751
GAIN ON INVESTMENT IN AFFILIATED
COMPANY - 146,879
EQUITY IN INCOME OF AFFILIATED
COMPANY - 208
OTHER EXPENSE, net - 47
--- ---
Income (loss) before
provision for income
taxes, noncontrolling
interest in income of
subsidiaries and loss from
discontinued operations (1,908) 120,599
PROVISION FOR INCOME TAXES - -
--- ---
Net income (loss) from
continuing operations (1,908) 120,599
(LOSS) INCOME FROM DISCONTINUED
OPERATIONS, net of tax - -
--- ---
CONSOLIDATED NET INCOME (LOSS) (1,908) 120,599
NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS - 2,717
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(1,908) $117,882
======= ========

Three Months Ended June 30, 2010
--------------------------------
(in thousands, unaudited, as adjusted (2)
-----------------------------------------
Consolidated Radio One
------------ ---------
STATEMENT OF
OPERATIONS:

NET REVENUE $75,146 $62,342
OPERATING EXPENSES:
Programming and
technical 19,294 13,436
Selling, general and
administrative 27,464 22,352
Corporate selling,
general and
administrative 7,764 -
Stock-based
compensation 1,956 222
Depreciation and
amortization 4,837 2,105
Total operating
expenses 61,315 38,115
------ ------
Operating income
(loss) 13,831 24,227
INTEREST INCOME 43 -
INTEREST EXPENSE 9,703 -
EQUITY IN INCOME OF
AFFILIATED COMPANY 1,139 -
OTHER EXPENSE
(INCOME), net 2,406 (1)
----- ---
Income (loss) before
provision for income
taxes, noncontrolling
interest in income of
subsidiaries and loss
from discontinued
operations 2,904 24,228
PROVISION FOR INCOME
TAXES 233 33
--- ---
Net income (loss) from
continuing operations 2,671 24,195
LOSS FROM DISCONTINUED
OPERATIONS, net of
tax (177) (173)
---- ----
CONSOLIDATED NET
INCOME (LOSS) 2,494 24,022
NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTERESTS 446 -
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON STOCKHOLDERS $2,048 $24,022
====== =======

Three Months Ended June 30, 2010
--------------------------------
(in thousands, unaudited, as adjusted (2)
-----------------------------------------
Reach
Media Internet
------ --------
STATEMENT OF
OPERATIONS:

NET REVENUE $10,418 $4,469
OPERATING EXPENSES:
Programming and
technical 5,038 2,421
Selling, general and
administrative 1,988 4,037
Corporate selling,
general and
administrative 1,762 -
Stock-based
compensation - 58
Depreciation and
amortization 1,091 1,360
Total operating
expenses 9,879 7,876
----- -----
Operating income
(loss) 539 (3,407)
INTEREST INCOME 12 -
INTEREST EXPENSE 17 -
EQUITY IN INCOME OF
AFFILIATED COMPANY - -
OTHER EXPENSE
(INCOME), net - (3)
--- ---
Income (loss) before
provision for income
taxes, noncontrolling
interest in income of
subsidiaries and loss
from discontinued
operations 534 (3,404)
PROVISION FOR INCOME
TAXES 200 -
--- ---
Net income (loss) from
continuing operations 334 (3,404)
LOSS FROM DISCONTINUED
OPERATIONS, net of
tax - (4)
--- ---
CONSOLIDATED NET
INCOME (LOSS) 334 (3,408)
NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTERESTS - -
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON STOCKHOLDERS $334 $(3,408)
==== =======

Three Months Ended June 30, 2010
--------------------------------
(in thousands, unaudited, as adjusted (2)
-----------------------------------------

Corporate/

Eliminations/

Other
-----
STATEMENT
OF
OPERATIONS:

NET
REVENUE $(2,083)
OPERATING
EXPENSES:
Programming
and
technical (1,601)
Selling,
general
and
administrative (913)
Corporate
selling,
general
and
administrative 6,002
Stock-
based
compensation 1,676
Depreciation
and
amortization 281
Total
operating
expenses 5,445
-----
Operating
income
(loss) (7,528)
INTEREST
INCOME 31
INTEREST
EXPENSE 9,686
EQUITY
IN
INCOME
OF
AFFILIATED
COMPANY 1,139
OTHER
EXPENSE
(INCOME),
net 2,410
-----
Income
(loss)
before
provision
for
income
taxes,
noncontrolling
interest
in
income
of
subsidiaries
and
loss
from
discontinued
operations (18,454)
PROVISION
FOR
INCOME
TAXES -
---
Net
income
(loss)
from
continuing
operations (18,454)
LOSS
FROM
DISCONTINUED
OPERATIONS,
net
of
tax -
---
CONSOLIDATED
NET
INCOME
(LOSS) (18,454)
NET
INCOME
ATTRIBUTABLE
TO
NONCONTROLLING
INTERESTS 446
NET
INCOME
(LOSS)
ATTRIBUTABLE
TO
COMMON
STOCKHOLDERS $(18,900)
========

Six Months Ended June 30, 2011
------------------------------
(in thousands, unaudited)
-------------------------
Radio
Consolidated One
------------ ------
STATEMENT OF
OPERATIONS:

NET REVENUE $162,070 $108,419
OPERATING
EXPENSES:
Programming and
technical 49,549 26,105
Selling, general
and
administrative 59,925 41,775
Corporate selling,
general and
administrative 14,772 -
Stock-based
compensation 2,136 318
Depreciation and
amortization 14,321 3,433
------ -----
Total operating
expenses 140,703 71,631
------- ------
Operating income
(loss) 21,367 36,788
INTEREST INCOME 17 -
INTEREST EXPENSE 42,249 -
GAIN ON INVESTMENT
IN AFFILIATED
COMPANY 146,879 -
LOSS ON RETIREMENT
OF DEBT 7,743 -
EQUITY IN INCOME
OF AFFILIATED
COMPANY 3,287 -
OTHER EXPENSE
(INCOME), net 22 31
--- ---
Income (loss) before
provision for income taxes,
noncontrolling interest in
income of subsidiaries and
loss from discontinued
operations 121,536 36,757
PROVISION FOR
INCOME TAXES 84,230 84,152
------ ------
Net income (loss) from
continuing operations 37,306 (47,395)
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net
of tax (81) (82)
--- ---
CONSOLIDATED NET
INCOME (LOSS) 37,225 (47,477)
NONCONTROLLING
INTEREST IN
INCOME OF
SUBSIDIARIES 2,920 -
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON
STOCKHOLDERS $34,305 $(47,477)
======= ========

Six Months Ended June 30, 2011
------------------------------
(in thousands, unaudited)
-------------------------
Reach Internet
----- --------
Media
-----
STATEMENT OF OPERATIONS:

NET REVENUE $24,500 $7,821
OPERATING EXPENSES:
Programming and technical 10,609 4,683
Selling, general and
administrative 8,301 5,156
Corporate selling, general and
administrative 3,347 -
Stock-based compensation - 58
Depreciation and amortization 1,974 2,037
----- -----
Total operating expenses 24,231 11,934
------ ------
Operating income (loss) 269 (4,113)
INTEREST INCOME 9 -
INTEREST EXPENSE 29 -
GAIN ON INVESTMENT IN AFFILIATED
COMPANY - -
LOSS ON RETIREMENT OF DEBT - -
EQUITY IN INCOME OF AFFILIATED
COMPANY - -
OTHER EXPENSE (INCOME), net - -
--- ---
Income (loss) before
provision for income taxes,
noncontrolling interest in
income of subsidiaries and
loss from discontinued
operations 249 (4,113)
PROVISION FOR INCOME TAXES 78 -
--- ---
Net income (loss) from
continuing operations 171 (4,113)
(LOSS) INCOME FROM DISCONTINUED
OPERATIONS, net of tax - 1
--- ---
CONSOLIDATED NET INCOME (LOSS) 171 (4,112)
NONCONTROLLING INTEREST IN INCOME
OF SUBSIDIARIES - -
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $171 $(4,112)
==== =======

Six Months Ended June 30, 2011
------------------------------
(in thousands, unaudited)
-------------------------

Cable Corporate/
-----

Television Eliminations/
----------
Other
-----
STATEMENT
OF
OPERATIONS:

NET
REVENUE $25,166 $(3,836)
OPERATING
EXPENSES:
Programming
and
technical 11,773 (3,621)
Selling,
general
and
administrative 5,813 (1,120)
Corporate
selling,
general
and
administrative (84) 11,509
Stock-
based
compensation - 1,760
Depreciation
and
amortization 6,429 448
----- ---
Total
operating
expenses 23,931 8,976
------ -----
Operating
income
(loss) 1,235 (12,812)
INTEREST
INCOME 5 3
INTEREST
EXPENSE 3,148 39,072
GAIN
ON
INVESTMENT
IN
AFFILIATED
COMPANY - 146,879
LOSS
ON
RETIREMENT
OF
DEBT - 7,743
EQUITY
IN
INCOME
OF
AFFILIATED
COMPANY - 3,287
OTHER
EXPENSE
(INCOME),
net (9)
---
Income (loss) before
provision for income taxes,
noncontrolling interest in
income of subsidiaries and
loss from discontinued
operations (1,908) 90,551
PROVISION
FOR
INCOME
TAXES - -
--- ---
Net income (loss) from
continuing operations (1,908) 90,551
(LOSS)
INCOME
FROM
DISCONTINUED
OPERATIONS,
net of
tax -
---
CONSOLIDATED
NET
INCOME
(LOSS) (1,908) 90,551
NONCONTROLLING
INTEREST
IN
INCOME
OF
SUBSIDIARIES - 2,920
NET
INCOME
(LOSS)
ATTRIBUTABLE
TO
COMMON
STOCKHOLDERS $(1,908) $87,631
======= =======

Six Months Ended June 30, 2010
------------------------------
(in thousands, unaudited, as adjusted (2)
-----------------------------------------

Consolidated Radio One
------------ ---------
STATEMENT OF
OPERATIONS:

NET REVENUE $134,126 $111,523
OPERATING EXPENSES:
Programming and
technical 37,829 26,080
Selling, general and
administrative 50,047 41,148
Corporate selling,
general and
administrative 15,049 -
Stock-based
compensation 3,969 570
Depreciation and
amortization 9,545 4,263
----- -----
Total operating
expenses 116,439 72,061
------- ------
Operating income
(loss) 17,687 39,462
INTEREST INCOME 67 -
INTEREST EXPENSE 18,938 -
EQUITY IN INCOME OF
AFFILIATED COMPANY 2,048 -
OTHER EXPENSE
(INCOME), net 2,883 (231)
----- ----
(Loss) income before
(benefit from)
provision for income
taxes,
noncontrolling
interest in income
of subsidiaries and
(loss) income from
discontinued
operations (2,019) 39,693
(BENEFIT FROM)
PROVISION FOR INCOME
TAXES (75) 66
--- ---
Net (loss) income
from continuing
operations (1,944) 39,627
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of
tax (159) (400)
---- ----
CONSOLIDATED NET
(LOSS) INCOME (2,103) 39,227
NONCONTROLLING
INTEREST IN INCOME
OF SUBSIDIARIES 417 -
NET (LOSS) INCOME
ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(2,520) $39,227
======= =======

Six Months Ended June 30, 2010
------------------------------
(in thousands, unaudited, as adjusted (2)
-----------------------------------------

Reach Internet
Media --------
-----
STATEMENT OF
OPERATIONS:

NET REVENUE $18,432 $7,948
OPERATING EXPENSES:
Programming and
technical 10,030 4,786
Selling, general and
administrative 3,249 7,240
Corporate selling,
general and
administrative 3,514 -
Stock-based
compensation - 112
Depreciation and
amortization 2,071 2,631
----- -----
Total operating
expenses 18,864 14,769
------ ------
Operating income
(loss) (432) (6,821)
INTEREST INCOME 35 -
INTEREST EXPENSE 37 -
EQUITY IN INCOME OF
AFFILIATED COMPANY - -
OTHER EXPENSE
(INCOME), net - 112
--- ---
(Loss) income before
(benefit from)
provision for income
taxes,
noncontrolling
interest in income
of subsidiaries and
(loss) income from
discontinued
operations (434) (6,933)
(BENEFIT FROM)
PROVISION FOR INCOME
TAXES (141) -
---- ---
Net (loss) income
from continuing
operations (293) (6,933)
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net of
tax - 241
--- ---
CONSOLIDATED NET
(LOSS) INCOME (293) (6,692)
NONCONTROLLING
INTEREST IN INCOME
OF SUBSIDIARIES - -
NET (LOSS) INCOME
ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(293) $(6,692)
===== =======

Six Months Ended June 30, 2010
------------------------------
(in thousands, unaudited, as adjusted (2)
-----------------------------------------

Corporate/

Eliminations/
Other
-----
STATEMENT
OF
OPERATIONS:

NET
REVENUE $(3,777)
OPERATING
EXPENSES:
Programming
and
technical (3,067)
Selling,
general
and
administrative (1,590)
Corporate
selling,
general
and
administrative 11,535
Stock-
based
compensation 3,287
Depreciation
and
amortization 580
---
Total
operating
expenses 10,745
------
Operating
income
(loss) (14,522)
INTEREST
INCOME 32
INTEREST
EXPENSE 18,901
EQUITY
IN
INCOME
OF
AFFILIATED
COMPANY 2,048
OTHER
EXPENSE
(INCOME),
net 3,002
-----
(Loss)
income
before
(benefit
from)
provision
for
income
taxes,
noncontrolling
interest
in
income
of
subsidiaries
and
(loss)
income
from
discontinued
operations (34,345)
(BENEFIT
FROM)
PROVISION
FOR
INCOME
TAXES -
---
Net
(loss)
income
from
continuing
operations (34,345)
(LOSS)
INCOME
FROM
DISCONTINUED
OPERATIONS,
net of
tax -
---
CONSOLIDATED
NET
(LOSS)
INCOME (34,345)
NONCONTROLLING
INTEREST
IN
INCOME
OF
SUBSIDIARIES 417
NET
(LOSS)
INCOME
ATTRIBUTABLE
TO
COMMON
STOCKHOLDERS $(34,762)
========

Radio One, Inc. (Nasdaq: ROIAK; ROIA) will be holding a conference call for investors, analysts and other interested parties to discuss its results for second fiscal quarter of 2011. The conference call is scheduled for Thursday, August 4, 2011 at 9:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free 1-866-269-9613; international callers may dial direct (+1) 612-332-0335.

A replay of the conference call will be available from 12:30 p.m. EDT August 4, 2011 until 11:59 p.m. August 5, 2011. Callers may access the replay by calling 1-800-475-6701; international callers may dial direct (+1) 320-365-3844. The replay Access Code is 210252. Access to live audio and a replay of the conference call will also be available on Radio One's corporate website at http://www.radio-one.com/. The replay will be made available on the website for seven days after the call.

Radio One, Inc. (www.radio-one.com) is a diversified media company that primarily targets African-American and urban consumers. The Company is one of the nation's largest radio broadcasting companies, currently owning 53 broadcast stations located in 16 urban markets in the United States. As a part of its core broadcasting business, Radio One operates syndicated programming including the Russ Parr Morning Show, the Yolanda Adams Morning Show, the Rickey Smiley Morning Show, CoCo Brother Live, CoCo Brother's "Spirit" program, Bishop T.D. Jakes' "Empowering Moments", the Reverend Al Sharpton Show, and the Warren Ballentine Show. The Company also owns a controlling interest in Reach Media, Inc. (www.blackamericaweb.com), owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner. Beyond its core radio broadcasting business, Radio One owns Interactive One (www.interactiveone.com), an online platform serving the African-American community through social content, news, information, and entertainment, which operates a number of branded sites, including News One, UrbanDaily, HelloBeautiful, Community Connect Inc. (www.communityconnect.com), an online social networking company, which operates a number of branded websites, including BlackPlanet, MiGente, and Asian Avenue. In addition, the Company owns a controlling 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, loss (gain) on retirement of debt,
(income) loss from discontinued operations, net of tax, interest income
and gain on purchase of affiliated company. Station operating income is
not a measure of financial performance under generally accepted
accounting principles. Nevertheless 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 fixed
assets and long-lived intangible assets, 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 June 30, 2011 and 2010, Radio One had
50,831,560 and 51,054,572 shares of common stock outstanding on a
weighted average basis (basic), and 52,905,060 and 54,302,885 shares of
common stock outstanding on a weighted average basis (fully diluted) for
outstanding stock options, respectively.
4. For the six months ended June 30, 2011 and 2010, Radio One had 51,474,556
and 50,942,693 shares of common stock outstanding on a weighted average
basis basic, and 53,646,473 and 50,942,693 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, loss on retirement of debt, loss from discontinued
operations, net of tax, less (2) equity in income of affiliated company,
other income, interest income and gain on purchase of affiliated company.
Net income before interest income, interest expense, income taxes,
depreciation and amortization is commonly referred to in our business as
"EBITDA." Adjusted EBITDA and EBITDA are not measures of financial
performance under generally accepted accounting principles. We believe
Adjusted EBITDA is often a useful measure of a company's operating
performance and is a significant basis used by our management to measure
the operating performance of our business because Adjusted EBITDA
excludes charges for depreciation, amortization and interest expense that
have resulted from our acquisitions and debt financing, our taxes,
impairment charges, as well as our equity in (income) loss of our
affiliated company, gain on retirements of debt, and any discontinued
operations. Accordingly, we believe that Adjusted EBITDA provides useful
information about the operating performance of our business, apart from
the expenses associated with our fixed assets and long-lived intangible
assets, capital structure or the results of our affiliated company.
Adjusted EBITDA is frequently used as one of the bases for comparing
businesses in our industry, although our measure of Adjusted EBITDA may
not be comparable to similarly titled measures of other companies.
Adjusted EBITDA and EBITDA do not purport to represent operating income
or cash flow from operating activities, as those terms are defined under
generally accepted accounting principles, and should not be considered as
alternatives to those measurements as an indicator of our performance. A
reconciliation of net loss to EBITDA and Adjusted EBITDA has been
provided in this release.

SOURCE Radio One, Inc.

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

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

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

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Profile: intent