Exhibit 99.1
NEWS RELEASE Contact: Scott R. Royster, Chief Financial Officer
August 2, 2001 (301) 429-2642
FOR IMMEDIATE RELEASE
Washington, DC
RADIO ONE, INC. REPORTS RECORD RESULTS FOR ITS SECOND QUARTER OF 2001
Same Station Net Revenue Increases 4%
Same Station Broadcast Cash Flow Increases 12%
After-Tax Cash Flow of $0.16 per share
Company Achieves Highest Quarterly
Revenue and BCF in its History
Washington, DC: - Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported record
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results for the quarter ended June 30, 2001. Net broadcast revenue was $62.3
million, up 91% from the same period in 2001. Broadcast cash flow was $34.0
million, an increase of 106% from the same period in 2001 while the broadcast
cash flow margin improved to 54.7% from 50.4%. After-tax cash flow was $14.0
million or $0.16 cents per share.
On a same station basis the Company's net broadcast revenue increased 4% and
broadcast cash flow increased 12% from last year while the broadcast cash flow
margin improved to 54.4% from 50.4% in the previous year's second quarter.
Alfred C. Liggins, III, the Company's CEO and President stated, "Despite the
very weak advertising market and the very difficult comparables from last year's
second quarter, we are pleased to report that we were able to meet the consensus
after-tax cash flow per share estimates for the quarter. We have been growing
significantly faster than the radio industry overall and expect this to persist
in the second half of 2001 as our ratings strength continues to provide us with
positive momentum. Further, with the Blue Chip acquisition expected to close by
August 15, we believe the upside in our portfolio of stations will be enhanced
in the upcoming quarters."
For the year-to-date period ending June 30, 2001, net broadcast revenue was
$110.2 million, up 101% from the same period in 2001. Broadcast cash flow was
$56.0 million, an increase of 115% from the same period in 2001 while the
broadcast cash flow margin improved to 50.8% from 47.6%. After-tax cash flow
was $16.0 million or $0.18 cents per share.
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PAGE 2 -- RADIO ONE, INC. REPORTS RECORD SECOND QUARTER RESULTS
RESULTS OF OPERATIONS
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Comparison of periods ended June 30, 2001 to the periods ended June 30, 2000
(all periods are unaudited - all numbers in 000s except per share data).
Three months Three months Six months Six months
ended ended ended ended
June 30, 2001 June 30, 2000 June 30, 2001 June 30, 2000
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STATEMENT OF OPERATIONS DATA:
REVENUE:
Broadcast revenue $70,930 $ 37,231 $125,203 $ 62,355
Less: Agency commissions 8,645 4,588 14,993 7,560
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Net broadcast revenue 62,285 32,643 110,210 54,795
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OPERATING EXPENSES:
Programming and technical 9,151 4,697 18,007 8,937
Selling, G&A 19,090 11,492 36,206 19,791
Corporate expenses 1,683 1,282 3,523 2,400
Non-cash compensation 237 - 475 -
Depreciation & amortization 30,851 7,182 62,375 12,671
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Total operating expenses 61,012 24,653 120,586 43,799
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Operating income (loss) 1,273 7,990 (10,376) 10,996
INTEREST EXPENSE 14,717 3,665 30,418 7,247
GAIN ON SALE OF INVESTMENT - - 4,272 -
OTHER (EXPENSE) INCOME, net (596) 5,470 - 9,707
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(Loss) income before
(benefit) provision for
income taxes (14,040) 9,795 (36,522) 13,456
(BENEFIT) PROVISION FOR INCOME
TAXES (4,633) 4,218 (11,942) 5,818
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Net (loss) income before
extraordinary item (9,407) 5,577 (24,580) 7,638
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EXTRAORDINARY LOSS ON DEBT
RETIREMENT, net of tax 5,207 - 5,207 -
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Net (loss) income $(14,614) $ 5,577 $(29,787) $ 7,638
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Net (loss) income
applicable to common
stockholders $(19,646) $ 5,577 $(39,857) $ 7,638
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PAGE 3 -- RADIO ONE, INC. REPORTS RECORD SECOND QUARTER RESULTS
Three months Three months Six months Six months
ended ended ended ended
June 30, 2001 June 30, 2000 June 30, 2001 June 30, 2000
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BASIC PER SHARE DATA (d):
Net (loss) income per share before
extraordinary loss applicable to common
shareholders $ (0.16) $ 0.07 $ (0.40) $ 0.09
Net (loss) income per share
applicable to common shareholders (0.22) 0.07 (0.46)
0.09
After-tax cash flow per share 0.16 0.14 0.24
0.18
DILUTED PER SHARE DATA (e):
Net (loss) income per share $ (0.16) $ 0.07 $ (0.34) $ 0.09
Preferred dividends per share 0.06 - 0.11 -
Net (loss) income per share applicable to
common shareholders $ (0.22) $ 0.07 $ (0.45) $ 0.09
After-tax cash flow per share 0.16 0.14 0.18 0.24
OTHER DATA:
Broadcast cash flow (a) $ 34,044 $ 16,454 $ 55,997 $ 26,067
Broadcast cash flow margin (a) 54.7% 50.4% 50.8% 47.6%
EBITDA (b) $ 32,361 $ 15,172 $ 52,474 $ 23,667
EBITDA margin (b) 52.0% 46.5% 47.6% 43.2%
After-tax cash flow (c) $ 13,963 $ 12,277 $ 16,078 $ 19,726
Capital expenditures 1,189 829 2,840 1,397
SAME STATION RESULTS:
Net revenue $ 34,036 $ 32,618 $ 57,239 $ 54,770
Broadcast cash flow 18,501 16,428 28,798 26,041
Broadcast cash flow margin 54.4% 50.4% 50.3% 47.5%
Weighted average shares outstanding-- 88,252 84,994 87,532 83,038
basic (d)
Weighted average shares outstanding-- 88,917 85,256 88,036 83,316
diluted (e)
June 30, 2001 December 31, 2000
(unaudited) (unadited)
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SELECTED BALANCE SHEET DATA:
Cash and cash equivalents $ 9,519 $ 20,879
Current assets 68,957 78,982
Total assets 1,708,722 1,765,218
Senior debt 350,057 562,588
Subordinated debt 300,000 84,368
Preferred stock (liquidation value) 310,000 310,000
Total shareholders--equity 1,011,373 1,057,069
AFTER-TAX CASH FLOW (c): Q2 -- 2001 Q2 -- 2000
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Pre-tax (loss) income $ (14,040) $ 9,795
Plus: Depreciation, amortization and non-cash 31,088 7,182
compensation
Plus: Write-down of investment 1,206 -
Plus: Tax benefit (liability) 250 (4,700)
Plus: Non-cash interest 491 -
Less: Preferred Dividends 5,032 -
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TOTAL $ 13,963 $ 12,277
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PAGE 4 -- RADIO ONE, INC. REPORTS RECORD SECOND QUARTER RESULTS
Net broadcast revenue increased to approximately $62.3 million for the quarter
ended June 30, 2001 from approximately $32.6 million for the quarter ended June
30, 2000 or 91%. Net broadcast revenue increased to approximately $110.2
million for the six months ended June 30, 2001 from approximately $54.8 million
for the six months ended June 30, 2000 or 101%. These increases in net
broadcast revenue were the result of continuing broadcast revenue growth in many
of the Company's markets in which it has operated for at least one year as the
Company benefited from historical ratings increases at certain of its radio
stations. Additional revenue gains were derived primarily from the Company's
2000 acquisition of radio stations from Clear Channel Communications and AMFM.
Operating expenses excluding depreciation, amortization and non-cash
compensation increased to approximately $29.9 million for the quarter ended June
30, 2001 from approximately $17.5 million for the quarter ended June 30, 2000 or
71%. Operating expenses excluding depreciation, amortization and non-cash
compensation increased to approximately $57.7 million for the six months ended
June 30, 2001 from approximately $31.1 million for the six months ended June 30,
2000 or 86%. These increases in expenses were related to the Company's rapid
expansion within all of the markets in which it operates including increased
variable costs associated with increased revenue, as well as start-up and
expansion expenses in its newer markets as well as higher costs associated with
operating as a public company.
Interest expense increased to approximately $14.7 million for the quarter ended
June 30, 2001 from approximately $3.7 million for the quarter ended June 30,
2000 or 297%. Interest expense increased to approximately $30.4 million for the
six months ended June 30, 2001 from approximately $7.2 million for the six
months ended June 30, 2000 or 322%. These increases relate primarily to
borrowings associated with the acquisition of radio stations from Clear Channel
and AMFM.
Other (expense) income was approximately $(0.6) million for the quarter ended
June 30, 2001 compared to approximately $5.5 million for the quarter ended June
30, 2000. This change was the result of an approximately $1.2 million write-
down of the Company's investment in NetNoir, Inc. partially offset by interest
income. Other income decreased to zero for the six months ended June 30, 2001
from approximately $9.7 million for the six months ended June 30, 2000. This
decrease was due to the Company having normalized cash balance levels during the
first half of 2001 as compared to high cash and investment balances resulting
from its follow-on equity offerings in November 2000 and March 2001 completed in
anticipation of the acquisition of radio stations from Clear Channel and AMFM
which was consummated in August, 2000.
(Loss) income before provision for income taxes was approximately $(14.0)
million for the quarter ended June 30, 2001 compared to approximately $9.8
million for the quarter ended June 30, 2000. (Loss) income before provision for
income taxes was approximately $(36.5) million for the six months ended June 30,
2001 compared to approximately $13.5 million for the six months ended June 30,
2000. These changes were due to lower operating income due to higher
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PAGE 5 -- RADIO ONE, INC. REPORTS RECORD SECOND QUARTER RESULTS
non-cash charges and higher interest expense due to higher levels of debt
outstanding as outlined above.
Net (loss) income was approximately $(14.6) million for the quarter ended June
30, 2001 compared to $5.6 million for the quarter ended June 30, 2000. Net
(loss) income was approximately $(29.8) million for the six months ended June
30, 2001 compared to approximately $7.6 million for the six months ended June
30, 2000. These changes were due to the (loss) before provision for income
taxes versus income before provision for income taxes in the previous year's
periods as well as an extraordinary charge in conjunction with the Company's
refinancing of its 12% senior subordinated notes with a new offering of 8-7/8%
senior subordinated notes in May, 2001, partially offset by a tax benefit
compared to a tax provision during last year's periods.
Broadcast cash flow increased to approximately $34.0 million for the quarter
ended June 30, 2001 from approximately $16.5 million for the quarter ended June
30, 2000 or 106%. Broadcast cash flow increased to approximately $56.0 million
for the six months ended June 30, 2001 from approximately $26.1 million for the
six months ended June 30, 2000 or 115%. These increases were attributable to
the increases in broadcast revenue partially offset by higher operating expenses
as described above.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), and
excluding non-cash compensation expense, increased to approximately $32.4
million for the quarter ended June 30, 2001 from approximately $15.2 million for
the quarter ended June 30, 2000 or 113%. Earnings before interest, taxes,
depreciation, and amortization (EBITDA), and excluding non-cash compensation
expense, increased to approximately $52.5 million for the six months ended June
30, 2001 from approximately $23.7 million for the six months ended June 30, 2000
or 122%. These increases were attributable to the increase in broadcast revenue
partially offset by higher operating expenses and higher corporate expenses
partially associated with the costs of operating as a public company.
Other Recent Events:
On June 21, 2001 the Company agreed to acquire WPEZ-FM, licensed to Macon,
Georgia, from U.S. Broadcasting Limited Partnership for approximately $55.0
million. The Company is in the process of moving the station closer to Atlanta,
Georgia thereby making it a viable Atlanta FM radio station. The move-in is
expected to be completed before the end of 2001.
On August 1, 2001 the Company completed the acquisition of radio stations from
Sinclair Telecable, Inc. and Commonwealth Broadcasting, LLC for approximately
$34.0 million.
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PAGE 6 -- RADIO ONE, INC. REPORTS RECORD SECOND QUARTER RESULTS
Radio One will be holding a conference call to discuss its results for the
fiscal second quarter of 2001. This conference call is scheduled for Thursday,
August 2, 2001 at 10:00 a.m. Eastern Daylight Time. Interested parties should
call 612-332-0107 or 612-288-0329 five minutes prior to the scheduled time of
the call and ask for the "Radio One 2001 Second Quarter Results Teleconference".
The conference call will be recorded and made available for replay from 1:30
p.m. the day of the call until midnight of the day following the call.
Interested parties may listen to the recording by calling (800) 475-6701 and
entering passcode 594939.
Radio One is the nation's seventh largest radio broadcasting company (based on
2000 pro forma revenue) in the United States and the largest primarily targeting
African-American and urban listeners. Pro forma for all announced acquisitions
and operating agreements, the Company owns and/or operates 65 radio stations
located in 22 of the largest markets in the United States.
Notes:
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. Because these statements apply to future events, they are
subject to risks and uncertainties that could cause actual results to differ
materially, including the absence of a combined operating history with an
acquired company or radio station and the potential inability to integrate
acquired businesses, need for additional financing, high degree of leverage,
seasonal nature of the business, granting of rights to acquire certain portions
of the acquired company's or radio station's operations, market ratings,
variable economic conditions and consumer tastes, as well as restrictions
imposed by existing debt and future payment obligations. Important factors that
could cause actual results to differ materially are described in the Company's
reports on Forms 10-K and 10-Q and other filings with the Securities and
Exchange Commission.
(a) "Broadcast cash flow" is defined as broadcast operating income plus
corporate expenses (including non-cash compensation) and depreciation and
amortization of both tangible and intangible assets.
(b) "EBITDA" is defined as earnings before interest, taxes, depreciation,
amortization and non-cash compensation.
(c) "After-tax cash flow" is defined as income before income taxes and
extraordinary items plus depreciation, amortization, non-cash compensation,
non-cash interest expense and non-cash loss/(gain) on investments, less the
current income tax liability/(benefit) and preferred stock dividends.
(d) As of June 30, 2001 the Company had 88,252,000 shares of Common Stock
outstanding on a weighted average basis for the quarter.
(e) As of June 30, 2001 the Company had 88,917,000 shares of Common Stock
outstanding on a weighted average basis for the quarter, diluted for
outstanding stock options. After-tax cash flow per share data was
calculated using the basic and diluted weighted average shares outstanding,
however, the per share amounts were the same because of the relatively
minor differences between the two weighted average share amounts.
The Company has presented broadcast cash flow, operating cash flow and after-tax
cash flow data, which the Company believes are comparable to the data provided
by other companies in the industry, because such data are commonly used as a
measure of performance for broadcast companies. However, broadcast cash flow,
operating cash flow and after-tax cash flow do not purport to represent cash
provided by operating activities as reflected in the Company's consolidated
statements of cash flow, are not a measure of financial performance under
generally accepted accounting principles and should not be considered in
isolation or as a substitute for measures of performance prepared in accordance
with generally accepted accounting principles.
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