Radio One Reports Preliminary Fourth Quarter Results

Radio One Inc. said on Wednesday that it posted a fourth-quarter loss based on preliminary results

Net broadcast revenue was approximately $89.2 million, a decrease of 2% from the same period in 2005. Station operating income(1) was approximately $39.7 million, a decrease of 9% from the same period in 2005. Adjusted EBITDA(2) was approximately $33.5 million, a decrease of 9% from the same period in 2005. Operating income was approximately $29.4 million, a decrease of 2% from the same period in 2005. Net loss applicable to common stockholders(3) was approximately $22.9 million or $0.23 per diluted share compared with a profit of $9.5 million, or 10 cents a share, a year ago.

Alfred C. Liggins, III, Radio One's CEO and President stated, "This was another soft quarter for the radio industry and while Radio One underperformed the industry, our problems are truly isolated to one market - Los Angeles. Given the significant changes we implemented at our LA station late last year, I am confident that that market will be a growth driver for us in the not too distant future. The early research is very positive and we have a great team in place out there. Overall, I am optimistic that, in the back half of 2007, we will have an opportunity to resume our historical out-performance of the radio industry."

Radio One Inc. received a letter of informal inquiry from the SEC regarding the review of stock option accounting. The SEC's letter notes that the request should not be construed as any indication by the SEC or its staff that a violation of the federal securities laws has occurred nor should it be considered a reflection upon any person, entity or security. The company said its stock-option probe is still on.