WASHINGTON, May 3, 2011 /Radio One, Inc. (the “Company” or “Radio One”) (Nasdaq: ROIAK; ROIA) today announced updated preliminary results for the quarter ended March 31, 2011. The Company anticipates net revenue of approximately $65.0 million, an increase of $6.0 million from the same period in 2010, an increase of 10.2%. The Company now anticipates Adjusted EBITDA(1) of approximately $9.9 million to $10.9 million. However, the Company now anticipates a net loss of $1.22 to $1.24 per share for the quarter ended March 31, 2011. The Company had previously anticipated a net loss of $0.37 to $0.39 per share for the period. The increase in the anticipated net loss is primarily the result of a non-cash charge related to its provision for income taxes. The Company now anticipates a provision for income taxes for the quarter ended March 31, 2011 of $45.6 million irrespective of the Company continuing to hold net operating losses of approximately $548.0 million. Approximately $45.3 million of 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.
The Company also made two announcements concerning its investment in TV One, LLC (“TV One”). First, Radio One announced that TV One has closed upon the redemption of a 12.4% ownership interest held by DIRECTV. As an effect of the redemption, Radio One’s ownership interest in TV One has now increased to approximately 50.9 percent, giving Radio One a majority interest in TV One. Further, Radio One announced that it will account for TV One on a consolidated basis as of April 14, 2011. The Company made the announcement after having executed an amendment to the TV One operating agreement 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.
Cautionary Information Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements represent management’s current expectations and are based upon information available to the Company at the time of this press release. These forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond the Company’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 the Company’s reports on Forms 10-K, 10-Q, 10-Q/A and other filings with the SEC.