Radio One, Inc. Reports First Quarter Results
WASHINGTON, May 12, 2011 /PRNewswire via COMTEX/ –
Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended March 31, 2011. Net revenue was approximately $65.0 million, an increase of 10.2% from the same period in 2010. Station operating income(1) remained flat at approximately $17.8 million, for both periods ended March 31, 2011 and 2010. The Company reported operating income of approximately $5.5 million compared to operating income of $3.8 million for the same period in 2010. Net loss was approximately $64.2 million or $1.23 per share, an increase in the amount of the net loss of $4.6 million or $0.09 per share, for the same period in 2010. Approximately $0.88 per share of the net loss is the result of a non-cash charge related to its provision for income taxes. The amount reflects the increase in deferred tax liabilities associated with the amortization of certain of the Company’s radio broadcast licenses for tax purposes.
Alfred C. Liggins, III, Radio One’s CEO and President stated, “Q1 2011 was challenging with our overall radio net revenues down 1.5% in the first quarter compared to last year. Reach Media net revenues increased 83.8% and were impacted by Reach Media assuming operational and financial control and responsibility for the ongoing cruise event, the “Tom Joyner Fantastic Voyage.” The “Tom Joyner Fantastic Voyage” took place in March 2011 and generated approximately $6.6 million of revenue for Reach Media. Our internet business revenues increased 1.0% this quarter compared to the first quarter of 2010; we continue to believe that our on-line platform will be a major source of revenue and EBITDA growth for the future.
During the first quarter 2011, the Company closed upon a new senior secured credit facility comprised of a $25.0 million “super-priority” revolving credit facility and a $386.0 million term loan (the “New Senior Credit Facility”). The revolving portion of the credit facility is available for general corporate purposes while the proceeds of the term portion of the New Senior Credit Facility were used to refinance all of the Company’s outstanding indebtedness under its prior senior credit facility.
TV One continues to perform strongly. TV One had Q1 net revenues of $30.8 million (+19.7% vs. Q1 2010) and EBITDA of $7.6 million (+83.7% vs. Q1 2010). On April 25, 2011, TV One closed on the redemption of a 12.4% ownership interest held by DIRECTV using funds from the private debt offering of $119 million managed by Canyon Capital Advisors LLC and the capital commitment funding completed on April 19, 2011 with the remaining members of TV One. This redemption was in addition to the redemption of 15.4% of its outstanding membership interests from certain financial investors and 2.0% of its outstanding membership interests held by TV One management (representing approximately 50% of interests held by management) completed on February 25, 2011. Radio One’s ownership interest in TV One is now approximately 50.9%, giving Radio One a majority interest in TV One. Additionally, Radio One expects to account for TV One on a consolidated basis beginning in the second quarter of 2011 after an amendment to the TV One operating agreement was executed with the remaining members of TV One concerning certain governance issues separate and apart from the redemption transaction increasing Radio One’s interest in TV One.
Second quarter 2011 radio pacings have deteriorated over the past several weeks, and we now expect Q2 2011 radio revenues to be relatively flat compared to prior year, although this will be mitigated by the strong growth in TV One revenues, which will be consolidated for the first time in Q2 2011.”
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