Exhibit 99.2
NEWS RELEASE
August 2, 2001
FOR IMMEDIATE RELEASE
RADIO ONE, INC.
UPDATES GUIDANCE FOR THE
THIRD QUARTER OF 2001
Washington, DC - Radio One, Inc. (NASDAQ: ROIAK and ROIA) today released updated
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guidance for its fiscal third quarter ending September 30, 2001. With the
adoption by the Securities and Exchange Commission of Regulation FD (Full
Disclosure), the Company believes that it is necessary to provide this important
information to all market participants. These estimates include expected
results for only those stations expected to be owned and/or operated by the
Company at some point during the third quarter of 2001. The acquisition of Blue
Chip Broadcasting is expected to close by August 15, 2001.
For the quarter ending September 30, 2001 the Company expects to report net
revenue of approximately $65.5-67.5 million, BCF of approximately $34.0-35.0
million, EBITDA of approximately $31.6-32.6 million and ATCF of approximately
$0.13-0.14 per share.
These changes are due to the following factors:
1. Continued weakness in the overall advertising market;
2. Significant investments in programming and/or promotions in several of the
Company's markets designed to enhance the long-term ratings potential of
certain stations;
3. Operating losses and LMA fees on two new "stick" stations to be operated by
the Company in the Atlanta market beginning in the third quarter of 2001;
4. An increase in the costs and size of the corporate infrastructure required
as the size of the Company has increased significantly, especially in the
past year.
Additionally, the Company now expects capital expenditures for the year of
approximately $8.0-10.0 million due to the addition of the Blue Chip stations
and investments in the Company's technical infrastructure.
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Page 2 - Radio One, Inc. Updates 2001 Guidance
Commenting on the revision to guidance for the balance of 2001, Alfred C.
Liggins, III, the Company's CEO and President, stated, "While we are never happy
to lower our expectations, the reality is that the economy and the radio
advertising market both continue to be fairly weak. While this weakness appears
to have moderated in recent months, we are not currently optimistic that the
second half will be as strong as we originally expected. We are certainly
pleased that our revenue growth expectations are well in excess of that which is
expected for the industry, and our ratings momentum continues to be strong, but
until there is more clarity with respect to the outlook for the economy, our
outlook for our third quarter performance has been tempered."
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.
This press release may include 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,
granting of rights to acquire certain portions of the acquired company's or
radio station's operations, 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.
For more information contact Scott R. Royster, Executive Vice President and
Chief Financial Officer at 301-429-2642.
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