WASHINGTON, Aug. 4, 2016 /PRNewswire/ -- Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended June 30, 2016. Net revenue was approximately $122.7 million, an increase of 2.4% from the same period in 2015. Station operating income was approximately $48.9 million, an increase of 5.5% from the same period in 2015. The Company reported operating income of approximately $27.7 million for the three months ended June 30, 2016, compared to operating income of $24.8 million for the same period in 2015. Net income was approximately $7.3 million or $0.15 per share (basic) compared to a net loss of $13.0 million or $0.27 per share (basic) for the same period in 2015.

Alfred C. Liggins, III, Radio One's CEO and President stated, 'I was pleased that our core radio advertising was positive at +1.4% for the quarter, and that we outperformed our markets overall. Disciplined cost management allowed us to grow our radio division cash flow, with Adjusted EBITDA up 10% for the quarter. We improved Adjusted EBITDA for each of our operating segments in Q2, leading to an overall increase of 9.6%. Our cable television advertising revenues in Q2 were impacted by some under-delivery against ratings estimates, however, sequential Q3 delivery is significantly improved, currently up by 9.5% in the primetime 25-54 demo, and our overall EBITDA guidance for the year still holds. During the quarter, we repurchased $20 million of our 2020 notes at an average price of 85.9, which both reduces our ongoing interest burden and helps move us towards our long term goal of lower leverage.'

RESULTS OF OPERATIONS

Three Months Ended June 30,

Six Months Ended June 30,

2016

2015

2016

2015

STATEMENT OF OPERATIONS

(unaudited)

(unaudited, as reclassified)

(unaudited)

(unaudited, as reclassified)

(in thousands, except share data)

(in thousands, except share data)

NET REVENUE

$ 122,719

$ 119,821

$ 231,807

$ 225,584

OPERATING EXPENSES

Programming and technical, excluding stock-based compensation

30,693

31,425

64,696

65,882

Selling, general and administrative, excluding stock-based compensation

43,092

42,002

78,541

77,017

Corporate selling, general and administrative, excluding stock-based
compensation

11,878

11,429

23,252

21,458

Stock-based compensation

765

1,198

1,537

2,779

Depreciation and amortization

8,572

8,980

17,254

18,068

Total operating expenses

95,000

95,034

185,280

185,204

Operating income

27,719

24,787

46,527

40,380

INTEREST INCOME

55

28

123

35

INTEREST EXPENSE

20,531

20,019

41,169

39,264

GAIN (LOSS) ON RETIREMENT OF DEBT

2,646

(7,091)

2,646

(7,091)

OTHER (INCOME) EXPENSE, net

(43)

437

(54)

285

Income (loss) before provision for income taxes and
noncontrolling interest in income of subsidiaries

9,932

(2,732)

8,181

(6,225)

PROVISION FOR INCOME TAXES

2,183

9,942

3,958

18,472

CONSOLIDATED NET INCOME (LOSS)

7,749

(12,674)

4,223

(24,697)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

435

365

856

6,831

CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS

$ 7,314

$ (13,039)

$ 3,367

$ (31,528)

AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS

CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS

$ 7,314

$ (13,039)

$ 3,367

$ (31,528)

Weighted average shares outstanding - basic

48,110,440

48,062,991

48,387,482

47,840,082

Weighted average shares outstanding - diluted

49,279,142

48,062,991

49,561,381

47,840,082

Three Months Ended June 30,

Six Months Ended June 30,

2016

2015

2016

2015

PER SHARE DATA - basic and diluted:

(unaudited)

(unaudited, as reclassified)

(unaudited)

(unaudited, as reclassified)

(in thousands, except per share data)

(in thousands, except per share data)

Consolidated net income (loss) attributable to common stockholders (basic)

$ 0.15

$ (0.27)

$ 0.07

$ (0.66)

Consolidated net income (loss) attributable to common stockholders (diluted)

$ 0.15

$ (0.27)

$ 0.07

$ (0.66)

SELECTED OTHER DATA

Station operating income

$ 48,934

$ 46,394

$ 88,570

$ 82,685

Station operating income margin (% of net revenue)

39.9%

38.7%

38.2%

36.7%

Station operating income reconciliation:

Consolidated net income (loss) attributable to common stockholders

$ 7,314

$ (13,039)

$ 3,367

$ (31,528)

Add back non-station operating income items included in consolidated net income (loss):

Interest income

(55)

(28)

(123)

(35)

Interest expense

20,531

20,019

41,169

39,264

Provision for income taxes

2,183

9,942

3,958

18,472

Corporate selling, general and administrative expenses

11,878

11,429

23,252

21,458

Stock-based compensation

765

1,198

1,537

2,779

(Gain) loss on retirement of debt

(2,646)

7,091

(2,646)

7,091

Other (income) expense, net

(43)

437

(54)

285

Depreciation and amortization

8,572

8,980

17,254

18,068

Noncontrolling interest in income of subsidiaries

435

365

856

6,831

Station operating income

$ 48,934

$ 46,394

$ 88,570

$ 82,685

Adjusted EBITDA

$ 39,933

$ 36,429

$ 70,666

$ 63,534

Adjusted EBITDA reconciliation:

Consolidated net income (loss) attributable to common stockholders:

$ 7,314

$ (13,039)

$ 3,367

$ (31,528)

Interest income

(55)

(28)

(123)

(35)

Interest expense

20,531

20,019

41,169

39,264

Provision for income taxes

2,183

9,942

3,958

18,472

Depreciation and amortization

8,572

8,980

17,254

18,068

EBITDA

$ 38,545

$ 25,874

$ 65,625

$ 44,241

Stock-based compensation

765

1,198

1,537

2,779

(Gain) loss on retirement of debt

(2,646)

7,091

(2,646)

7,091

Other (income) expense, net

(43)

437

(54)

285

Noncontrolling interest in income of subsidiaries

435

365

856

6,831

Employment Agreement Award and incentive plan award expenses

2,536

1,094

4,775

1,462

Severance-related costs*

341

370

573

845

Adjusted EBITDA

$ 39,933

$ 36,429

$ 70,666

$ 63,534

*The Company has modified the definition of Adjusted EBITDA for the inclusion of severance-related costs.

All prior periods have been reclassified to conform to the current period presentation.

June 30, 2016

December 31, 2015

(unaudited)

(in thousands)

SELECTED BALANCE SHEET DATA:

Cash and cash equivalents

$ 54,131

$ 67,376

Intangible assets, net

1,032,172

1,042,956

Total assets

1,350,645

1,346,524

Total debt (including current portion, net of original issue discount and issuance costs)

1,005,349

1,024,337

Total liabilities

1,403,605

1,407,062

Total deficit

(65,391)

(71,824)

Redeemable noncontrolling interest

12,431

11,286

Current Amount Outstanding

Applicable Interest Rate

(in thousands)

SELECTED LEVERAGE DATA:

2015 Credit Facility, net of original issue discount and issuance costs of approximately
$10.1 million (subject to variable rates) (a)

$ 336,428

5.14%

9.25% senior subordinated notes due February 2020, net of original issue discount and
issuance costs of approximately $2.6 million (fixed rate)

312,364

9.25%

7.375% senior secured notes due April 2022, net of original issue discount and issuance
costs of approximately $5.3 million (fixed rate)

344,685

7.375%

Comcast Note due April 2019 (fixed rate)

11,872

10.47%

(a) Subject to variable Libor plus a spread that is 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 consists of gross revenue, net of local and national agency and outside sales representative commissions. Agency and outside sales representative commissions are calculated based on a stated percentage applied to gross billing.

Three Months Ended June 30,

2016

2015

$ Change

% Change

(Unaudited)

(in thousands)

Net Revenue:

Radio Advertising

$

56,068

$

55,298

$

770

1.4%

Political Advertising

852

449

403

89.8%

Digital Advertising

6,027

5,811

216

3.7%

Cable Television Advertising

20,170

20,608

(438)

-2.1%

Cable Television Affiliate Fees

27,403

24,975

2,428

9.7%

Event Revenues & Other

12,199

12,680

(481)

-3.8%

Net Revenue (as reported)

$

122,719

$

119,821

$

2,898

2.4%

Net revenue increased to approximately $122.7 million for the quarter ended June 30, 2016, from approximately $119.8 million for the same period in 2015, an increase of 2.4%. Net revenues from our radio broadcasting segment decreased 0.2% for the quarter ended June 30, 2016, versus the same period in 2015. We experienced net revenue growth in eight of our radio markets (most significantly in Washington D.C., Charlotte and Cleveland); however, this growth was offset by declines in other markets (with Columbus, Philadelphia, Houston and Detroit experiencing the most significant declines). Reach Media's net revenues increased 2.8% in the second quarter of 2016, compared to the same period in 2015. The 'Tom Joyner Fantastic Voyage' took place during the second quarters of 2016 and 2015 and generated revenue of approximately $8.8 million and $8.7 million, respectively, for Reach Media. We recognized approximately $47.6 million of revenue from our cable television segment during the three months ended June 30, 2016, compared to approximately $45.6 million for the same period in 2015, the increase due primarily from an increase in affiliate sales. Finally, net revenues for our internet business increased 7.9% for the three months ended June 30, 2016, compared to the same period in 2015 due to higher direct revenue.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $85.7 million for the quarter ended June 30, 2016, up 1.0% from the approximately $84.9 million incurred for the comparable quarter in 2015.

Depreciation and amortization expense decreased to approximately $8.6 million compared to approximately $9.0 million for the quarters ended June 30, 2016 and 2015, respectively, a decrease of 4.5%. The decrease was due to certain assets reaching the end of their useful lives.

Interest expense increased to approximately $20.5 million for the quarter ended June 30, 2016, compared to approximately $20.0 million for the same period in 2015. On April 17, 2015, the Company's 2011 Credit Agreement, and TV One notes were paid off, with balances of $367.6 million and $119.0 million, respectively. The payoffs were achieved by the Company entering into its new $350.0 million 2015 Credit Facility, issuing the 2022 Notes in an aggregate principal amount of $350.0 million and the Comcast Note in the aggregate principal amount of approximately $11.9 million. The Company made cash interest payments of approximately $18.6 million on its outstanding debt for the quarter ended June 30, 2016, compared to cash interest payments of approximately $2.6 million on the 2011 Credit Agreement and the notes that were outstanding with respect to the TV One debt for the quarter ended June 30, 2015. Thus, the increased interest expense and cash payments were made due to higher debt balances.

The gain on retirement of debt of approximately $2.6 million for the quarter ended June 30, 2016 was due to the redemption of approximately $20 million of our 2020 Notes at a discount. The loss on retirement of debt of approximately $7.1 million for the quarter ended June 30, 2015 was due to the retirement of the 2011 Credit Facility and payoff of the TV One Notes during the second quarter of 2015. This amount included a write-off of approximately $1.3 million of previously capitalized debt financing costs, a write-off of $844,000 of original issue discount associated with the 2011 Credit Agreement, as well as $827,000 associated with the call premium to refinance the credit facility, $106,000 associated with the consent to the existing holders of the 2020 Notes and approximately $4.0 million of costs associated with the financing transactions.

The provision for income taxes for the quarter ended June 30, 2016 was approximately $2.2 million and $9.9 million for the comparable period in 2015, with the change primarily attributable to the deferred tax liability ('DTL') for indefinite-lived intangible assets. The change in taxes was primarily due to the completion of tax amortization from previously acquired indefinite-lived intangible assets. The Company paid $352,000 and $276,000 in taxes for the quarters ended June 30, 2016 and 2015, respectively.

The increase in noncontrolling interests in income of subsidiaries was due to greater net income generated by Reach Media.

Other pertinent financial information includes capital expenditures of approximately $1.1 million and $1.6 million for the quarters ended June 30, 2016 and 2015, respectively. As of June 30, 2016, the Company had total debt (net of cash balances and original issue discount) of approximately $951.2 million. During the three months ended June 30, 2016, the Company repurchased 575,608 shares of Class D common stock in the aggregate amount of approximately $1.1 million. During the six months ended June 30, 2016, the Company repurchased 636,174 shares of Class D common stock in the aggregate amount of approximately $1.2 million. The Company, in connection with its 2009 stock plan, is authorized to purchase shares of Class D common stock to satisfy employee's tax obligations in connection with the vesting of share grants under the plan. During the six months ended June 30, 2016, the Company repurchased 330,111 shares of Class D common stock, to satisfy employee tax obligations, in the amount of $568,000. During the three and six months ended June 30, 2015, the Company repurchased 345,293 shares of Class D common stock, to satisfy employee tax obligations, in the amount of approximately $1.4 million.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three and six months ended June 30, 2016 and 2015 are included. These detailed, unaudited and adjusted statements of operations include certain reclassifications. 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, 2016

(in thousands, unaudited)

Radio

Reach

Cable

Corporate/

Consolidated

Broadcasting

Media

Internet

Television

Eliminations

STATEMENT OF OPERATIONS:

NET REVENUE

$

122,719

$

53,135

$

18,829

$

4,874

$

47,553

$

(1,672)

OPERATING EXPENSES:

Programming and technical

30,693

10,074

5,789

1,877

14,151

(1,198)

Selling, general and administrative

43,092

21,336

9,681

3,237

9,311

(473)

Corporate selling, general and administrative

11,878

-

1,129

-

2,854

7,895

Stock-based compensation

765

55

10

4

-

696

Depreciation and amortization

8,572

1,077

47

438

6,552

458

Total operating expenses

95,000

32,542

16,656

5,556

32,868

7,378

Operating income (loss)

27,719

20,593

2,173

(682)

14,685

(9,050)

INTEREST INCOME

55

-

-

-

-

55

INTEREST EXPENSE

20,531

330

-

-

1,919

18,282

GAIN ON RETIREMENT OF DEBT

2,646

-

-

-

-

2,646

OTHER INCOME, net

(43)

(5)

-

-

-

(38)

Income (loss) before provision for income taxes and noncontrolling
interest in income of subsidiaries

9,932

20,268

2,173

(682)

12,766

(24,593)

PROVISION FOR INCOME TAXES

2,183

2,116

37

20

10

-

CONSOLIDATED NET INCOME (LOSS)

7,749

18,152

2,136

(702)

12,756

(24,593)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

435

-

-

-

-

435

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

7,314

$

18,152

$

2,136

$

(702)

$

12,756

$

(25,028)

Adjusted EBITDA

$

39,933

$

22,017

$

2,271

$

(238)

$

21,236

$

(5,353)

Three Months Ended June 30, 2015

(in thousands, unaudited, as reclassified)

Radio

Reach

Cable

Corporate/

Consolidated

Broadcasting

Media

Internet

Television

Eliminations

STATEMENT OF OPERATIONS:

NET REVENUE

$

119,821

$

53,243

$

18,315

$

4,516

$

45,594

$

(1,847)

OPERATING EXPENSES:

Programming and technical

31,425

10,270

5,621

1,996

14,732

(1,194)

Selling, general and administrative

42,002

23,211

9,519

3,192

7,352

(1,272)

Corporate selling, general and administrative

11,429

-

1,138

-

3,488

6,803

Stock-based compensation

1,198

32

-

17

-

1,149

Depreciation and amortization

8,980

1,169

268

473

6,542

528

Total operating expenses

95,034

34,682

16,546

5,678

32,114

6,014

Operating income (loss)

24,787

18,561

1,769

(1,162)

13,480

(7,861)

INTEREST INCOME

28

-

-

-

(11)

39

INTEREST EXPENSE

20,019

305

-

-

2,254

17,460

LOSS ON RETIREMENT OF DEBT

(7,091)

-

-

-

-

(7,091)

OTHER EXPENSE, net

437

27

-

-

92

318

(Loss) income before provision for income taxes and noncontrolling
interest in income of subsidiaries

(2,732)

18,229

1,769

(1,162)

11,123

(32,691)

PROVISION FOR INCOME TAXES

9,942

9,912

30

-

-

-

CONSOLIDATED NET (LOSS) INCOME

(12,674)

8,317

1,739

(1,162)

11,123

(32,691)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

365

-

-

-

-

365

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(13,039)

$

8,317

$

1,739

$

(1,162)

$

11,123

$

(33,056)

Adjusted EBITDA

$

36,429

$

20,015

$

2,037

$

(654)

$

20,121

$

(5,090)

Six Months Ended June 30, 2016

(in thousands, unaudited)

Radio

Reach

Cable

Corporate/

Consolidated

Broadcasting

Media

Internet

Television

Eliminations

STATEMENT OF OPERATIONS:

NET REVENUE

$

231,807

$

97,894

$

29,798

$

10,294

$

97,036

$

(3,215)

OPERATING EXPENSES:

Programming and technical

64,696

19,969

11,578

3,695

31,732

(2,278)

Selling, general and administrative

78,541

40,887

11,718

6,630

20,243

(937)

Corporate selling, general and administrative

23,252

-

2,076

-

5,316

15,860

Stock-based compensation

1,537

139

21

6

-

1,371

Depreciation and amortization

17,254

2,221

89

881

13,105

958

Total operating expenses

185,280

63,216

25,482

11,212

70,396

14,974

Operating income (loss)

46,527

34,678

4,316

(918)

26,640

(18,189)

INTEREST INCOME

123

-

-

-

-

123

INTEREST EXPENSE

41,169

671

-

-

3,838

36,660

GAIN ON RETIREMENT OF DEBT

2,646

-

-

-

-

2,646

OTHER INCOME, net

(54)

(5)

-

-

-

(49)

Income (loss) before provision for income taxes and noncontrolling
interest in income of subsidiaries

8,181

34,012

4,316

(918)

22,802

(52,031)

PROVISION FOR INCOME TAXES

3,958

3,845

74

20

19

-

CONSOLIDATED NET INCOME (LOSS)

4,223

30,167

4,242

(938)

22,783

(52,031)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

856

-

-

-

-

856

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

3,367

$

30,167

$

4,242

$

(938)

$

22,783

$

(52,887)

Adjusted EBITDA

$

70,666

$

37,510

$

4,488

$

(22)

$

39,741

$

(11,051)

Six Months Ended June 30, 2015

(in thousands, unaudited, as reclassified)

Radio

Reach

Cable

Corporate/

Consolidated

Broadcasting

Media

Internet

Television

Eliminations

STATEMENT OF OPERATIONS:

NET REVENUE

$

225,584

$

98,212

$

29,022

$

10,260

$

91,327

$

(3,237)

OPERATING EXPENSES:

Programming and technical

65,882

20,446

11,271

4,299

32,181

(2,315)

Selling, general and administrative

77,017

44,463

11,392

6,578

16,745

(2,161)

Corporate selling, general and administrative

21,458

-

2,317

-

6,435

12,706

Stock-based compensation

2,779

139

-

38

-

2,602

Depreciation and amortization

18,068

2,325

532

1,112

13,046

1,053

Total operating expenses

185,204

67,373

25,512

12,027

68,407

11,885

Operating income (loss)

40,380

30,839

3,510

(1,767)

22,920

(15,122)

INTEREST INCOME

35

-

-

-

(93)

128

INTEREST EXPENSE

39,264

610

-

-

5,293

33,361

LOSS ON RETIREMENT OF DEBT

(7,091)

-

-

-

-

(7,091)

OTHER EXPENSE, net

285

55

-

-

92

138

(Loss) income before provision for income taxes and noncontrolling
interest in income of subsidiaries

(6,225)

30,174

3,510

(1,767)

17,442

(55,584)

PROVISION FOR INCOME TAXES

18,472

18,411

61

-

-

-

CONSOLIDATED NET (LOSS) INCOME

(24,697)

11,763

3,449

(1,767)

17,442

(55,584)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

6,831

-

-

-

-

6,831

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(31,528)

$

11,763

$

3,449

$

(1,767)

$

17,442

$

(62,415)

Adjusted EBITDA

$

63,534

$

33,963

$

4,046

$

(581)

$

36,103

$

(9,997)

Radio One, Inc. will hold a conference call to discuss its results for second fiscal quarter of 2016. The conference call is scheduled for Thursday, August 04, 2016 at 10:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free 1-800-230-1085; 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 04, 2016 until 11:59 p.m. EDT August 06, 2016. 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 397824. Access to live audio and a replay of the conference call will also be available on Radio One's corporate website at www.radio-one.com. The replay will be made available on the website for seven days after the call.

Radio One, Inc.(radio-one.com), together with its subsidiaries, is a diversified media company that primarily targets African-American and urban consumers. It is one of the nation's largest radio broadcasting companies, currently owning and/or operating 56 stations in 16 urban markets in the United States. Through its controlling interest in Reach Media, Inc. (blackamericaweb.com), the Company also operates syndicated programming including the Tom Joyner Morning Show, the Russ Parr Morning Show, the Rickey Smiley Morning Show, the DL Hughley Show, Bishop T.D. Jakes'Empowering Moments, and the Reverend Al Sharpton Show.

Beyond its core radio broadcasting franchise, Radio One owns Interactive One (interactiveone.com), the fastest growing and definitive digital resource for Black and Latin Americans, reaching millions each month through social content, news, information, and entertainment. Interactive One operates a number of branded sites including News One (news), The Urban Daily (men), Hello Beautiful (women), Global Grind (Millennials) and social networking websites such as BlackPlanet and MiGente. The Company also owns TV One, LLC (tvone.tv), a cable/satellite network programming serving more than 57 million households, offering a broad range of real-life and entertainment-focused original programming, classic series, movies and music designed to entertain, inform and inspire a diverse audience of adult Black viewers. Additionally, One Solution combines the dynamics of Radio One's holdings to provide brands with an integrated and effectively engaging marketing approach that reaches 82% of Black Americans throughout the country.

Notes:
 1 'Station operating income' consists of net loss before depreciation and amortization, corporate expenses, stock-based compensation, 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, and interest income. 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 Certain reclassifications have been made to prior year balances to conform to the current year 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 Reclassified.'

3 For the three months ended June 30, 2016 and 2015, Radio One had 48,110,440 and 48,062,991 shares of common stock outstanding on a weighted average basis (basic), respectively. For the six months ended June 30, 2016 and 2015, Radio One had 48,387,482 and 47,840,082 shares of common stock outstanding on a weighted average basis (basic), respectively.

4 For the three months ended June 30, 2016 and 2015, Radio One had 49,279,142 and 48,062,991 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock options), respectively. For the six months ended June 30, 2016 and 2015, Radio One had 49,561,381 and 47,840,082 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, Employment Agreement and incentive plan award expenses, severance-related costs, less (2) other income and interest income. 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. However, 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, 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, including, but not limited to the fact that our definition includes the results of all four segments (radio broadcasting, Reach Media, internet and cable television). 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.

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SOURCE Radio One, Inc.

Peter D. Thompson, EVP and CFO, (301) 429-4638

Radio One Inc. published this content on 04 August 2016 and is solely responsible for the information contained herein.
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