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April 18, 2011 /PRNewswire/ --Radio One, Inc. (the "Company" or "Radio One") (Nasdaq: ROIAK; ROIA) today announced that its Board of Directors has approved a stock repurchase authorization. The Company has been authorized, but is not obligated, to repurchase up to
$15 million worth of its Class A and/or Class D common stock prior to
April 13, 2013. Repurchases will be made from time to time in the open market or in privately negotiated transactions in accordance with applicable laws and regulations. The timing and extent of any repurchases will depend upon prevailing market conditions, the trading price of the Company's Class A and/or Class D common stock and other factors, and subject to restrictions under applicable law. Radio One expects to implement this stock repurchase program in a manner consistent with market conditions and the interests of the stockholders, including maximizing stockholder value. Based on the closing stock price of Radio One's Class D common stock on
Friday, April 15, 2011, the newly authorized repurchase would represent approximately 12.1% of the Company's outstanding shares.
Radio One also announced preliminary results for the quarter ended
March 31, 2011. The Company anticipates net revenue of approximately
$65.4 million, an increase of
$6.4 million from the same period in 2010, an increase of 10.9%. Station operating income(1) is anticipated to be approximately
$17.2 million to $18.2 million for the three months ended
March 31, 2011. The Company further anticipates Adjusted EBITDA(2) of approximately
$9.2 million to $10.2 million. The Company anticipates a net loss of
$0.37 to $0.39 per share for the quarter ended
March 31, 2011.
Further, Radio One made two announcements with respect to its ownership in TV One. First, it announced that in connection with its recent increased ownership in TV One, it expects to begin to account for TV One on a consolidated basis once certain approvals from other members of TV One have been received. Radio One expects to receive these approvals by no later than
April 30, 2011. Finally, Radio One expects that TV One will redeem the ownership interests held by DIRECTV on or about
April 30, 2011. One effect of the redemption will be to increase the ownership interests of the remaining members, increasing Radio One's ownership to approximately 50.8 percent.
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.