Radio One, Inc. Reports Second Quarter Results

Radio One, Inc. Reports Second Quarter Results

WASHINGTON, Aug. 2, 2012 /PRNewswire/ -- Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended June 30, 2012. Giving effect to the consolidation of TV One, net revenue was approximately $105.9 million, an increase of 9.1% from the same period in 2011. Also giving effect to the consolidation of TV One, station operating income(1) was approximately $41.4 million, an increase of 19.0% from the same period in 2011. The Company reported operating income of approximately $21.5 million compared to operating income of approximately $15.8 million for the same period in 2011. Net income was approximately $42.7 million or $0.85 per share compared to net income of $98.6 million or $1.94 per share, for the same period in 2011. Net income for the quarter ended June 30, 2011 included the impact of a non-cash pre-tax gain of approximately $146.9 million resulting from its increased ownership and controlling interest in TV One recorded during that period.

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

Alfred C. Liggins, III, Radio One's CEO and President stated, "I was pleased with our second quarter core radio revenue growth of 6.5% year over year. While the timing of the One Love Gospel Cruise and other corporate revenues brought the headline radio revenue growth rate down to 2.7%, I believe we strongly outperformed the markets in which we operate. We expect this trend to continue into the third quarter, where we are currently pacing up high single digits, with political revenues likely to strengthen as we move closer to the Presidential election. TV One continued its growth trajectory with Quarterly EBITDA of $11.7 million, up 32.8% from the same period last year. The dividends received from TV One remain an important source of cash-flow for Radio One, and we intend to manage this aspect of the business prudently, with a view towards managing our bank covenant step-downs in 2013. Our Internet division had a somewhat weaker than expected second quarter, with a lack of tent-pole events around which to build revenue. I expect their progress towards profitability to resume in the third quarter."







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

Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2012 2011 2012 2011
---- ---- ---- ----
STATEMENT OF OPERATIONS (unaudited) (unaudited)
---------- ----------
(in thousands, except share (in thousands, except share
data) data)


NET REVENUE $105,916 $97,062 $208,958 $162,070
OPERATING EXPENSES
Programming and technical, excluding stock-
based compensation 32,958 30,718 64,123 49,549
Selling, general and administrative,
excluding 31,553 31,594 70,362 59,925
stock-based compensation
Corporate selling, general and
administrative, 9,824 7,523 19,390 14,772
excluding stock-based compensation
Stock-based compensation 46 1,199 90 2,136
Depreciation and amortization 9,742 10,238 19,427 14,321
Impairment of long-lived assets 313 - 313 -
---
Total operating expenses 84,436 81,272 173,705 140,703
------
Operating income 21,480 15,790 35,253 21,367
INTEREST INCOME 25 9 47 17
INTEREST EXPENSE 22,928 22,916 46,675 42,249
GAIN ON INVESTMENT IN AFFILIATED COMPANY - 146,879 - 146,879
LOSS ON RETIREMENT OF DEBT - - - 7,743
EQUITY IN INCOME OF AFFILIATED COMPANY - 208 - 3,287
OTHER EXPENSE, net 610 47 603 22
---
(Loss) income before (2,033) 139,923 (11,978) 121,536
(benefit from) provision
for income taxes,
noncontrolling
interest in income of
subsidiaries and
income (loss) from
discontinued operations
(BENEFIT FROM) PROVISION FOR INCOME TAXES (48,491) 38,611 16,763 84,230
--------
Net income (loss) from 46,458 101,312 (28,741) 37,306
continuing operations
INCOME (LOSS) FROM DISCONTINUED OPERATIONS,
net of tax 7 (45) 21 (81)
---
CONSOLIDATED NET INCOME (LOSS) 46,465 101,267 (28,720) 37,225
NET INCOME ATTRIBUTABLE TO NONCONTROLLING
INTERESTS 3,797 2,717 7,854 2,920
-----
CONSOLIDATED NET INCOME (LOSS)ATTRIBUTABLE TO
COMMON STOCKHOLDERS $42,668 $98,550 $(36,574) $34,305
=======

AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS
NET INCOME (LOSS) FROM CONTINUING OPERATIONS $42,661 $98,595 $(36,595) $34,386
INCOME (LOSS) FROM DISCONTINUED OPERATIONS,
net of tax 7 (45) 21 (81)
---
CONSOLIDATED NET INCOME (LOSS)ATTRIBUTABLE TO
COMMON STOCKHOLDERS $42,668 $98,550 $(36,574) $34,305
=======

Weighted average shares outstanding -
basic(2) 50,006,085 50,831,560 49,997,752 51,474,556
==========
Weighted average shares outstanding -
diluted(3) 50,124,418 52,905,060 49,997,752 53,646,473
==========




Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2012 2011 2012 2011
---- ---- ---- ----
(unaudited) (unaudited)
---------- ----------
(in thousands, except per share (in thousands, except per share
data) data)
-------------------------------- --------------------------------
PER SHARE DATA -basic
and diluted:

Net income (loss) from $0.85 $1.94 $(0.73) $0.67
continuing operations
(basic)
Income (loss) from 0.00 (0.00) 0.00 (0.00)
discontinued
operations,
net of tax (basic)

Consolidated net income $0.85 $1.94 $(0.73) $0.67
(loss) attributable to
common stockholders
(basic)


Net income (loss) from $0.85 $1.86 $(0.73) $0.64
continuing operations
(diluted)

Income (loss) from 0.00 (0.00) 0.00 (0.00)
discontinued
operations,
net of tax (diluted)

Consolidated net income $0.85 $1.86 $(0.73) $0.64
(loss) attributable to
common stockholders
(diluted)


SELECTED OTHER DATA
Station operating $41,405 $34,750 $74,473 $52,596
income(1)
Station operating
income 39.1% 35.8% 35.6% 32.5%
margin (% of net
revenue)

Station operating
income reconciliation:

Consolidated net income $42,668 $98,550 $(36,574) $34,305
(loss) attributable to
common stockholders

Add back non-station
operating income items
included in
consolidated net
income (loss):
Interest income (25) (9) (47) (17)
Interest expense 22,928 22,916 46,675 42,249
(Benefit from)
provision (48,491) 38,611 16,763 84,230
for income taxes
Corporate selling, 9,824 7,523 19,390 14,772
general and
administrative expenses
Stock-based 46 1,199 90 2,136
compensation
Gain on investment in - (146,879) - (146,879)
affiliated company
Loss on retirement of - - - 7,743
debt
Equity in income of - (208) - (3,287)
affiliated company
Other expense, net 610 47 603 22
Depreciation and 9,742 10,238 19,427 14,321
amortization
Noncontrolling interest
in 3,797 2,717 7,854 2,920
income of subsidiaries
Impairment of long-
lived 313 - 313 -
assets
(Income) loss from (7) 45 (21) 81
discontinued
operations,
net of tax

Station operating
income $41,405 $34,750 $74,473 $52,596
======= ======= ======= =======

Adjusted EBITDA4 $31,581 $27,227 $55,083 $37,824

Adjusted EBITDA
reconciliation:

Consolidated net income $42,668 $98,550 $(36,574) $34,305
(loss) attributable to
common stockholders
Interest income (25) (9) (47) (17)
Interest expense 22,928 22,916 46,675 42,249
(Benefit from) (48,491) 38,611 16,763 84,230
provision for income
taxes
Depreciation and 9,742 10,238 19,427 14,321
amortization

EBITDA $26,822 $170,306 $46,244 $175,088
Stock-based 46 1,199 90 2,136
compensation
Gain on investment in - (146,879) - (146,879)
affiliated company
Loss on retirement of - - - 7,743
debt
Equity in income of - (208) - (3,287)
affiliated company
Other expense, net 610 47 603 22
Noncontrolling interest 3,797 2,717 7,854 2,920
in income of
subsidiaries
Impairment of long- 313 - 313 -
lived assets
(Income) loss from (7) 45 (21) 81
discontinued
operations, net of tax

Adjusted EBITDA $31,581 $27,227 $55,083 $37,824
======= ======= ======= =======

June 30, 2012 December 31, 2011
------------- -----------------
(unaudited)
----------
(in thousands)
-------------
SELECTED BALANCE SHEET DATA:
Cash and cash equivalents $42,760 $35,939
Intangible assets, net 1,223,820 1,244,861
Total assets 1,474,387 1,486,482
Total debt (including current
portion) 819,930 808,904
Total liabilities 1,077,736 1,055,541
Total equity 378,651 410,598
Redeemable noncontrolling interest 18,000 20,343
Noncontrolling interest 207,704 205,063

Current Amount Outstanding Applicable Interest Rate
-------------------------- ------------------------
(in thousands)
-------------
SELECTED LEVERAGE DATA:
Senior bank term debt, net of
original issue discount of
approximately $6.1 million
(subject to variable rates) (a) $373,148 7.50%
12 (1)/2%/15% senior subordinated
notes (fixed rate) 327,035 12.50%
6 (3)/8% senior subordinated notes
(fixed rate) 747 6.38%
10% Senior Secured TV One Notes due
March 2016 (fixed rate) 119,000 10.00%


(a) Subject to variable Libor
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 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 increased to approximately $105.9 million for the quarter ended June 30, 2012, from approximately $97.1 million for the same period in 2011, an increase of 9.1%. We began to consolidate the results of TV One during the second quarter of 2011 and recognized approximately $32.3 million of revenue from our new cable television segment during the three months ended June 30, 2012 compared to $25.2 million for the period April 15, 2011 through June 30, 2011. Net revenues from our radio segment for the quarter ended June 30, 2012 increased 2.7% from the same period in 2011. Excluding the timing difference for the Company's annual Gospel Cruise held in March 2012 versus April 2011, our core radio revenue, including syndicated programming, increased 6.5% for the quarter ended June 30, 2012 compared to the same period in 2011. Our Atlanta, Baltimore, Dallas, Detroit, Indianapolis, Raleigh and Washington D.C. clusters posted the most significant quarterly growth, while our Columbus, Philadelphia and St. Louis markets posted the most significant declines. Reach Media's net revenues decreased 12.6% in the second quarter 2012 compared to the same period in 2011 partially due to changes to certain of Reach Media's affiliate agreements that became effective on January 1, 2012. Net revenues for our internet business increased 2.7% for the three months ended June 30, 2012 compared to the same period in 2011.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $74.3 million for the quarter ended June 30, 2012, up 6.4% from the approximately $69.8 million incurred for the comparable quarter in 2011. Approximately $2.3 million of the increase is a result of additional programming and technical expenses, partially related to the TV One consolidation. For our cable television segment, these operating expenses include expenses associated with the technical, programming, production, and content management. The additional increase of our programming and technical expenses is due to higher payroll and talent costs in our radio broadcasting and Reach Media segments. In addition, there were increases in corporate expenses due to higher professional fees, research and bad debt expense at our cable television segment.

Stock-based compensation decreased to $46,000 for the quarter ended June 30, 2012, compared to approximately $1.2 million for the same period in 2011. Vesting associated with the Company's 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 was fully completed as of December 31, 2011. 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 $9.7 million compared to approximately $10.2 million for the quarters ended June 30, 2012 and 2011, respectively, a decrease of 4.9%. The decrease was due to the completion of amortization for certain intangible assets and the completion of useful lives for certain assets.

Interest expense remained flat at approximately $22.9 million for the quarter ended June 30, 2012 compared to the same period in 2011. The Company made cash interest payments of approximately $15.5 million for the quarter ended June 30, 2012. Through May 15, 2012, interest on the Company's 12½%/15% Senior Subordinated Notes was payable at our election partially in cash and partially through the issuance of additional 12½%/15% Senior Subordinated Notes (a "PIK Election") on a quarterly basis. The PIK Election expired on May 15, 2012 and interest accruing from and after May 15, 2012 accrues at a rate of 12½% and is payable in cash.

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 was 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 $610,000 for the quarter ended June 30, 2012 compared to other expense of $47,000 for the quarter ended June 30, 2011. Other expense for the quarter ended June 30, 2012 was primarily due to the disposal of assets associated with the Company's corporate office move.

There was no equity in income of affiliated company for the quarter ended June 30, 2012 compared to $208,000 for the same period in 2011. Equity in income of affiliated company reflected our estimated equity in the net income of TV One. As a result of the consolidation of TV One during the second quarter of 2011, there was no equity in income of affiliated company for the three months ended June 30, 2012. Previously, the Company's share of the net income was driven by TV One's capital structure and the Company's percentage ownership of the equity securities of TV One.

The benefit from income taxes for the quarter ended June 30, 2012 was approximately $48.5 million compared to a provision for income taxes of approximately $38.6 million for the comparable period in 2011. The decrease is primarily attributable to adjusting the year-to-date income tax provision based on the actual effective tax rate as of June 30, 2012. The provision for income taxes of approximately $38.6 million for the same period in 2011 is attributable to the increase in the deferred tax liability for indefinite-lived intangibles. The Company paid $287,000 in taxes for the quarter ended June 30, 2012.

Income (loss) from discontinued operations, net of tax, includes the results of operations for our sold radio stations (or stations made the subject of a local marketing agreement) and Giant Magazine, which ceased publication in December 2009. Income from discontinued operations, net of tax, was $7,000 for the quarter ended June 30, 2012, compared to a loss from discontinued operations, net of tax, of $45,000 for the same period in 2011. The activity for the three months ended June 30, 2012 and 2011 resulted primarily from our remaining station in our Boston market entering into an LMA. The income (loss) from discontinued operations, net of tax, includes no tax provision for either of the three month periods ended June 30, 2012 or 2011.

The increase in noncontrolling interests in income of subsidiaries is due primarily to the impact of consolidating TV One's operating results for a full quarter during the three months ended June 30, 2012. This amount is partially offset by a net loss generated by Reach Media for the three months ended June 30, 2012 compared to net income for the same period in 2011.

Other pertinent financial information includes capital expenditures of approximately $3.8 million and $1.9 million for the quarters ended June 30, 2012 and 2011, respectively. Approximately $1.4 million of capital expenditures for the quarter ended June 30, 2012 relates to the Company's corporate office move to Silver Spring, MD. The Company received dividends from TV One in the amount of approximately $1.8 million for the quarter ended June 30, 2012. As of June 30, 2012, the Company had total debt (net of cash balances) of approximately $777.2 million. The Company's cash and cash equivalents by segment are as follows: radio and internet approximately $22.0 million, Reach Media approximately $4.1 million and cable television approximately $16.7 million. In addition to cash and cash equivalents, the cable television segment also has short-term investments of $232,000 and long-term investments of approximately $2.9 million.

Other Matters
The Company has determined, and Ernst & Young LLP, the Company's independent registered public accounting firm agrees, that the Company's previously filed consolidated statement of cash flows for the year ended December 31, 2011 and interim consolidated statements of cash flows within that year and the first quarter of 2012 require restatement as a result of a classification error. Those statements of cash flows improperly classified payments for content assets as investing activities rather than operating activities. The classification errors had no impact on the net increase in cash and cash equivalents, cash balance, the consolidated balance sheet, the consolidated statement of operations or the consolidated statement of stockholders' equity in any of the affected periods.

The adjustment to the consolidated statement of cash flows for the year ended December 31, 2011 will reclassify approximately $23.4 million of payments for content assets from investing activities to operating activities. Accordingly, net cash provided by operating activities will decrease by approximately $23.4 million and net cash provided by investing activities will increase by approximately $23.4 million.

The authorized officers of the Company have discussed with Ernst & Young LLP the matters that will be disclosed in Current Report on Form 8-K to be filed with the SEC no later than August 3, 2012.

The Company also intends to file an amendment on Form 10-K/A to its 2011 Form 10-K to amend its financial statements therein to reflect the aforementioned reclassifications. The Company will also report reclassifications related to this matter for each interim period in 2011 in the revised notes to the 2011 consolidated financial statements when filed on Form 10-K/A, and will report the effects on the consolidated statement of cash flows for the three months ended March 31, 2012 when it files its second quarter 10-Q in the coming weeks.

Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited statements of operations for the three and six months ended June 30, 2012 and 2011 are included.







Three Months Ended June 30, 2012
--------------------------------
(in thousands, unaudited)
------------------------

Corporate/
Radio Reach Cable Eliminations/
Consolidated One Media Internet Television Other
------------ --- ----- -------- ---------- -----

STATEMENT OF OPERATIONS:

NET REVENUE $105,916 $61,759 $8,546 $4,423 $32,254 $(1,066)
OPERATING
EXPENSES:
Programming and
technical 32,958 13,076 6,004 2,026 12,879 (1,027)
Selling, general
and
administrative 31,553 21,990 1,226 2,872 5,719 (254)
Corporate selling,
general and
administrative 9,824 - 1,715 - 1,994 6,115
Stock-based
compensation 46 15 - - - 31
Depreciation and
amortization 9,742 1,623 293 823 6,762 241
Impairment of
long-lived
assets 313 313 - - - -

Total operating
expenses 84,436 37,017 9,238 5,721 27,354 5,106

Operating income
(loss) 21,480 24,742 (692) (1,298) 4,900 (6,172)
INTEREST INCOME 25 - 2 - 8 15
INTEREST EXPENSE 22,928 250 - - 3,039 19,639
OTHER EXPENSE
(INCOME), net 610 (7) - - - 617

(Loss) income
before discontinued
benefit from operations
income
taxes,
noncontrolling
interest in
income of
subsidiaries
and income
from (2,033) 24,499 (690) (1,298) 1,869 (26,413)
BENEFIT FROM
INCOME TAXES (48,491) (48,358) (133) - - -

Net income
(loss) from
continuing
operations 46,458 72,857 (557) (1,298) 1,869 (26,413)
INCOME FROM
DISCONTINUED
OPERATIONS, net
of tax 7 7 - - - -

CONSOLIDATED NET
INCOME (LOSS) 46,465 72,864 (557) (1,298) 1,869 (26,413)
NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTERESTS 3,797 - - - - 3,797
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON
STOCKHOLDERS $42,668 $72,864 $(557) $(1,298) $1,869 $(30,210)


Adjusted EBITDA4 $31,581 $26,693 $(399) $(475) $11,662 $(5,900)





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

Corporate/
Radio Reach Cable Eliminations/
Consolidated One Media Internet Television Other
------------ --- ----- -------- ---------- -----

STATEMENT OF OPERATIONS:

NET REVENUE $97,062 $60,162 $9,774 $4,307 $25,166 $(2,347)
OPERATING
EXPENSES:
Programming and
technical 30,718 13,291 5,307 2,274 11,773 (1,927)
Selling, general
and
administrative 31,594 22,792 1,343 2,518 5,813 (872)
Corporate selling,
general and
administrative 7,523 - 1,670 - (84) 5,937
Stock-based
compensation 1,199 178 - 34 - 987
Depreciation and
amortization 10,238 1,681 990 919 6,429 219
Total operating
expenses 81,272 37,942 9,310 5,745 23,931 4,344

Operating income
(loss) 15,790 22,220 464 (1,438) 1,235 (6,691)
INTEREST INCOME 9 - 3 - 5 1
INTEREST EXPENSE 22,916 - 17 - 3,148 19,751
GAIN ON INVESTMENT
IN AFFILIATED
COMPANY 146,879 - - - - 146,879
EQUITY IN INCOME
OF AFFILIATED
COMPANY 208 - - - - 208
OTHER EXPENSE, net 47 - - - - 47

Income (loss)
before discontinued
provision operations
for income
taxes,
noncontrolling
interest in
income of
subsidiaries
and (loss)
income from 139,923 22,220 450 (1,438) (1,908) 120,599
PROVISION FOR
INCOME TAXES 38,611 38,461 150 - - -

Net income
(loss) from
continuing
operations 101,312 (16,241) 300 (1,438) (1,908) 120,599
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net
of tax (45) (46) - 1 - -

CONSOLIDATED NET
INCOME (LOSS) 101,267 (16,287) 300 (1,437) (1,908) 120,599
NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTERESTS 2,717 - - - - 2,717
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON
STOCKHOLDERS $98,550 $(16,287) $300 $(1,437) $(1,908) $117,882


Adjusted EBITDA4 $27,227 $24,079 $1,454 $(485) $7,664 $(5,485)





Six Months Ended June 30, 2012
------------------------------
(in thousands, unaudited)
------------------------

Corporate/
Radio Reach Cable Eliminations/
Consolidated One Media Internet Television Other
------------ --- ----- -------- ---------- -----

STATEMENT OF OPERATIONS:

NET REVENUE $208,958 $114,493 $22,099 $10,207 $64,490 $(2,331)
OPERATING
EXPENSES:
Programming and
technical 64,123 26,088 11,981 4,079 24,101 (2,126)
Selling, general
and
administrative 70,362 44,285 7,716 6,283 12,691 (613)
Corporate selling,
general and
administrative 19,390 - 3,610 - 4,118 11,662
Stock-based
compensation 90 32 - - - 58
Depreciation and
amortization 19,427 3,228 593 1,637 13,511 458
Impairment of
long-lived
assets 313 313 - - - -

Total operating
expenses 173,705 73,946 23,900 11,999 54,421 9,439

Operating income
(loss) 35,253 40,547 (1,801) (1,792) 10,069 (11,770)
INTEREST INCOME 47 - 4 - 14 29
INTEREST EXPENSE 46,675 499 - - 6,078 40,098
OTHER EXPENSE
(INCOME), net 603 (15) - - 1 617

(Loss) income
before from
provision discontinued
for (benefit operations
from) income
taxes,
noncontrolling
interest in
income of
subsidiaries
and income (11,978) 40,063 (1,797) (1,792) 4,004 (52,456)
PROVISION FOR
(BENEFIT FROM)
INCOME TAXES 16,763 17,387 (624) - - -

Net (loss)
income from
continuing
operations (28,741) 22,676 (1,173) (1,792) 4,004 (52,456)
INCOME FROM
DISCONTINUED
OPERATIONS, net
of tax 21 21 - - - -

CONSOLIDATED NET
(LOSS) INCOME (28,720) 22,697 (1,173) (1,792) 4,004 (52,456)
NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTERESTS 7,854 - - - - 7,854
NET (LOSS) INCOME
ATTRIBUTABLE TO
COMMON
STOCKHOLDERS $(36,574) $22,697 $(1,173) $(1,792) $4,004 $(60,310)


Adjusted EBITDA4 $55,083 $44,120 $(1,208) $(155) $23,580 $(11,254)





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

Corporate/
Radio Reach Cable Eliminations/
Consolidated One Media Internet Television Other
------------ --- ----- -------- ---------- -----

STATEMENT OF OPERATIONS:

NET REVENUE $162,070 $108,419 $24,500 $7,821 $25,166 $(3,836)
OPERATING
EXPENSES:
Programming and
technical 49,549 26,105 10,609 4,683 11,773 (3,621)
Selling, general
and
administrative 59,925 41,775 8,301 5,156 5,813 (1,120)
Corporate selling,
general and
administrative 14,772 - 3,347 - (84) 11,509
Stock-based
compensation 2,136 318 - 58 - 1,760
Depreciation and
amortization 14,321 3,433 1,974 2,037 6,429 448
Total operating
expenses 140,703 71,631 24,231 11,934 23,931 8,976

Operating income
(loss) 21,367 36,788 269 (4,113) 1,235 (12,812)
INTEREST INCOME 17 - 9 - 5 3
INTEREST EXPENSE 42,249 - 29 - 3,148 39,072
GAIN ON INVESTMENT
IN AFFILIATED
COMPANY 146,879 - - - - 146,879
LOSS ON RETIREMENT
OF DEBT 7,743 - - - - 7,743
EQUITY IN INCOME
OF AFFILIATED
COMPANY 3,287 - - - - 3,287
OTHER EXPENSE
(INCOME), net 22 31 - - - (9)

Income (loss)
before discontinued
provision operations
for income
taxes,
noncontrolling
interest in
income of
subsidiaries
and (loss)
income from 121,536 36,757 249 (4,113) (1,908) 90,551
PROVISION FOR
INCOME TAXES 84,230 84,152 78 - - -

Net income
(loss) from
continuing
operations 37,306 (47,395) 171 (4,113) (1,908) 90,551
(LOSS) INCOME FROM
DISCONTINUED
OPERATIONS, net
of tax (81) (82) - 1 - -

CONSOLIDATED NET
INCOME (LOSS) 37,225 (47,477) 171 (4,112) (1,908) 90,551
NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTERESTS 2,920 - - - - 2,920
NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON
STOCKHOLDERS $34,305 $(47,477) $171 $(4,112) $(1,908) $87,631


Adjusted EBITDA4 $37,824 $40,539 $2,243 $(2,018) $7,664 $(10,604)





Radio One, Inc. will hold a conference call to discuss its results for second fiscal quarter of 2012. This conference call is scheduled for Thursday, August 2, 2012 at 10:00 a.m. Eastern Daylight Time. To participate on this call, U.S. callers may dial toll-free 1-800-230-1093; international callers may dial direct (+1) 612-332-0107.

A replay of the conference call will be available from 12:00 p.m. EDT August 2, 2012 until 11:59 p.m. August 5, 2012. 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 255002. 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. (http://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 or operating 54 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. (http://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 (http://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. (http://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 (http://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 station operating income is a significant basis used by our management to measure the operating performance of our stations within the various markets because station operating income provides helpful information about our results of operations apart from expenses associated with our fixed assets and long-lived intangible assets, income taxes, investments, debt financings and retirements, overhead, stock-based compensation, impairment charges, and asset sales. Our measure of station operating income may not be comparable to similarly titled measures of other companies as our definition includes the results of all four segments (radio broadcasting, Reach Media, internet and cable television). Station operating income does not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as an alternative to those measurements as an indicator of our performance. A reconciliation of net income (loss) to station operating income has been provided in this release.

2 For the three months ended June 30, 2012 and 2011, Radio One had 50,006,085 and 50,831,560 shares of common stock outstanding on a weighted average basis (basic), respectively. For the six months ended June 30, 2012 and 2011, Radio One had 49,997,752 and 51,474,556 shares of common stock outstanding on a weighted average basis (basic), respectively.

3 For the three months ended June 30, 2012 and 2011, Radio One had 50,124,418 and 52,905,060 shares of common stock outstanding on a weighted average basis (fully diluted), for outstanding stock options, respectively. For the six months ended June 30, 2012 and 2011, Radio One had 49,997,752 and 53,646,473 shares of common stock outstanding on a weighted average basis (fully diluted), for outstanding stock options, respectively.

4 "Adjusted EBITDA" consists of net loss plus (1) depreciation, amortization, income taxes, interest expense, noncontrolling interest in income of subsidiaries, impairment of long-lived assets, stock-based compensation, loss on retirement of debt, loss from discontinued operations, net of tax, less (2) equity in income of affiliated company, other income, interest income, gain on retirement of debt and gain on purchase of affiliated company. Net income before interest income, interest expense, income taxes, depreciation and amortization is commonly referred to in our business as "EBITDA." Adjusted EBITDA and EBITDA are not measures of financial performance under generally accepted accounting principles. 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 income (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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