
Radio One has issued its second quarterly report and it shows a loss of $11.7 million..the company says its average ad prices are down 5%...here is their Business wire press release..
Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the quarter ended June 30, 2008. Net revenue was approximately $83.4 million, an increase of 1% from the same period in 2007. Station operating income
1 was approximately $35.2 million, a decrease of 11% from the same period in 2007. Operating income of approximately $11.8 million was adversely impacted by one-time charges, resulting in a decrease of 44% from the operating income in the same period in 2007. Net loss was approximately $11.7 million or $0.12 per basic share, an increase from the reported net loss of $5.1 million in the same period in 2007. On a pro forma basis after adjusting for the impact of one-time charges, the net loss for the three months ended June 30, 2008 was approximately $1.3 million or $0.01 per basic share, a decrease from the pro forma net loss of approximately $4.0 million in the same period in 2007.
Alfred C. Liggins, III, Radio One’s CEO and President stated, , “It was a very busy quarter for us, complete with acquisitions, including the purchase of Community Connect Inc. (“CCI”), asset sales, debt de-leveraging and stock buy-backs, yet I am pleased we were focused and delivered better than market results. While the soft economy and continuing fall off in national revenues impacted our radio business, we once again outperformed the markets we operate in by over 200 basis points. Our core radio revenues declined 3%, yet our local revenue performance significantly offset the continuing drag we experienced in our national business. Other positives impacting the quarter for radio were strong political spending, internet revenue growth of 36% and a doubling of revenue from a series of new syndicated shows.
We continue to invest in our internet business, and generated over $3.7 million in revenue from our April 2008 acquisition of CCI, in addition to revenue from other internally launched sites, which helped push our overall revenue growth for the quarter up 1%.
Given the backdrop of the weak economy and declining revenues in radio, we once again focused on cutting back on operating expenses and improving our balance sheet. Setting aside consolidation of CCI’s expenses, our internet investments and one-time charges for a new executive employment agreement, as well as spending on the 2007 stock options review, we under spent inflation, and almost held expenses flat. On the balance sheet, we wrapped up the purchase WPRS-FM for our Washington, DC market. In addition, proceeds from our Los Angeles and Miami asset sales positioned us to accomplish net debt pay downs and bond retirements of $77 million, as well as the buy-back of over 2 million shares.
My outlook for the rest of 2008 and into 2009 remains cautious, yet I am excited about our internet growth opportunities, and I am confident our management team will continue to outperform the market.”
RESULTS OF OPERATIONS |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2008 |
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2007 |
|
2008 |
|
2007 |
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(as adjusted)2 |
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(as adjusted)2 |
STATEMENT OF OPERATIONS |
|
(unaudited) |
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(unaudited) |
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(in thousands) |
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(in thousands) |
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NET REVENUE |
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$ |
83,432 |
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$ |
82,620 |
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$ |
155,930 |
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$ |
156,660 |
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OPERATING EXPENSES: |
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Programming and technical |
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20,764 |
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17,844 |
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39,796 |
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35,914 |
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Selling, general and administrative |
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27,489 |
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25,466 |
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52,007 |
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47,334 |
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Corporate selling, general and administrative |
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17,551 |
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8,110 |
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23,958 |
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15,660 |
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Stock-based compensation |
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|
629 |
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|
777 |
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|
957 |
|
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|
1,592 |
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Depreciation and amortization |
|
|
5,171 |
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|
3,667 |
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|
|
8,835 |
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|
|
7,383 |
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Impairment of long-lived assets |
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- |
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5,506 |
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- |
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5,506 |
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Total operating expenses |
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71,604 |
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61,370 |
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125,553 |
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113,389 |
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Operating Income |
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11,828 |
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21,250 |
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30,377 |
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43,271 |
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INTEREST INCOME |
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|
(130 |
) |
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|
(294 |
) |
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(331 |
) |
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(561 |
) |
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INTEREST EXPENSE |
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15,160 |
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18,577 |
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32,419 |
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36,647 |
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GAIN ON RETIREMENT OF DEBT |
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(1,015 |
) |
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- |
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(1,015 |
) |
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- |
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EQUITY IN (INCOME) LOSS OF AFFILIATED COMPANY3 |
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(29 |
) |
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3,088 |
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2,799 |
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7,306 |
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OTHER EXPENSE, net |
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33 |
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- |
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44 |
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8 |
|
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(Loss) before provision for income taxes, minority interest in income of subsidiaries and discontinued operations |
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(2,191 |
) |
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(121 |
) |
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(3,539 |
) |
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(129 |
) |
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PROVISION (BENEFIT) FOR INCOME TAXES |
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9,761 |
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(801 |
) |
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18,659 |
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|
651 |
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MINORITY INTEREST IN INCOME OF SUBSIDIARIES |
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1,058 |
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|
919 |
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1,881 |
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1,825 |
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Net Loss from continuing operations |
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(13,010 |
) |
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(239 |
) |
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(24,079 |
) |
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(2,605 |
) |
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INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax |
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1,334 |
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(4,832 |
) |
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(6,447 |
) |
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(5,448 |
) |
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Net Loss |
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$ |
(11,676 |
) |
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$ |
(5,071 |
) |
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$ |
(30,526 |
) |
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$ |
(8,053 |
) |
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Weighted average shares outstanding - basic4 |
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98,403,298 |
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98,710,633 |
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98,560,790 |
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98,710,633 |
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Weighted average shares outstanding - diluted5 |
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98,403,298 |
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98,710,633 |
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98,560,790 |
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|
98,710,633 |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2008 |
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2007 |
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2008 |
|
2007 |
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(as adjusted)2 |
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|
(as adjusted)2 |
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|
(unaudited) |
|
(unaudited) |
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(in thousands, except per share data) |
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(in thousands, except per share data) |
PER SHARE DATA - basic and diluted: |
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Loss from continuing operations per share |
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$ |
(0.13 |
) |
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$ |
0.00 |
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$ |
(0.24 |
) |
|
$ |
(0.03 |
) |
* |
Loss from discontinued operations per share |
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$ |
0.01 |
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$ |
(0.05 |
) |
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$ |
(0.07 |
) |
|
$ |
(0.06 |
) |
* |
Net loss per share |
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$ |
(0.12 |
) |
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$ |
(0.05 |
) |
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$ |
(0.31 |
) |
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$ |
(0.08 |
) |
* |
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SELECTED OTHER DATA |
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Station operating income 1 |
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$ |
35,179 |
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$ |
39,310 |
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$ |
64,127 |
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|
$ |
73,412 |
|
|
Station operating income margin (% of net revenue) |
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|
42.2 |
% |
|
|
47.6 |
% |
|
|
41.1 |
% |
|
|
46.9 |
% |
|
Station operating income reconciliation: |
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|
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Net (loss) |
|
$ |
(11,676 |
) |
|
$ |
(5,071 |
) |
|
$ |
(30,526 |
) |
|
$ |
(8,053 |
) |
|
Plus: Depreciation and amortization |
|
|
5,171 |
|
|
|
3,667 |
|
|
|
8,835 |
|
|
|
7,383 |
|
|
Plus: Corporate selling, general and administrative expenses |
|
|
17,551 |
|
|
|
8,110 |
|
|
|
23,958 |
|
|
|
15,660 |
|
|
Plus: Stock-based compensation |
|
|
629 |
|
|
|
777 |
|
|
|
957 |
|
|
|
1,592 |
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|
Plus: Equity in (income) loss of affiliated company3 |
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(29 |
) |
|
|
3,088 |
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|
|
2,799 |
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|
|
7,306 |
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|
Plus: Provision (benefit) for income taxes |
|
|
9,761 |
|
|
|
(801 |
) |
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|
18,659 |
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|
|
651 |
|
|
Plus: Minority interest in income of subsidiaries |
|
|
1,058 |
|
|
|
919 |
|
|
|
1,881 |
|
|
|
1,825 |
|
|
Plus: Interest expense |
|
|
15,160 |
|
|
|
18,577 |
|
|
|
32,419 |
|
|
|
36,647 |
|
|
Plus: Impairment of long-lived assets |
|
|
- |
|
|
|
5,506 |
|
|
|
- |
|
|
|
5,506 |
|
|
Plus: Other expense |
|
|
33 |
|
|
|
- |
|
|
|
44 |
|
|
|
8 |
|
|
Less: (Gain) on retirement of debt |
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|
(1,015 |
) |
|
|
- |
|
|
|
(1,015 |
) |
|
|
- |
|
|
Plus: Loss (Income) from discontinued operations, net of tax |
|
|
(1,334 |
) |
|
|
4,832 |
|
|
|
6,447 |
|
|
|
5,448 |
|
|
Less: Interest income |
|
|
(130 |
) |
|
|
(294 |
) |
|
|
(331 |
) |
|
|
(561 |
) |
|
Station operating income |
|
$ |
35,179 |
|
|
$ |
39,310 |
|
|
$ |
64,127 |
|
|
$ |
73,412 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA6 |
|
$ |
17,628 |
|
|
$ |
31,200 |
|
|
$ |
40,169 |
|
|
$ |
57,752 |
|
|
Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(11,676 |
) |
|
$ |
(5,071 |
) |
|
$ |
(30,526 |
) |
|
$ |
(8,053 |
) |
|
Plus: Depreciation and amortization |
|
|
5,171 |
|
|
|
3,667 |
|
|
|
8,835 |
|
|
|
7,383 |
|
|
Plus: Provision (Benefit) for income taxes |
|
|
9,761 |
|
|
|
(801 |
) |
|
|
18,659 |
|
|
|
651 |
|
|
Plus: Interest expense |
|
|
15,160 |
|
|
|
18,577 |
|
|
|
32,419 |
|
|
|
36,647 |
|
|
Less: Interest income |
|
|
(130 |
) |
|
|
(294 |
) |
|
|
(331 |
) |
|
|
(561 |
) |
|
EBITDA |
|
$ |
18,286 |
|
|
$ |
16,078 |
|
|
$ |
29,056 |
|
|
$ |
36,067 |
|
|
Plus: Equity in (income) loss of affiliated company3 |
|
|
(29 |
) |
|
|
3,088 |
|
|
|
2,799 |
|
|
|
7,306 |
|
|
Plus: Minority interest in income of subsidiaries |
|
|
1,058 |
|
|
|
919 |
|
|
|
1,881 |
|
|
|
1,825 |
|
|
Plus: Impairment of long-lived assets |
|
|
- |
|
|
|
5,506 |
|
|
|
- |
|
|
|
5,506 |
|
|
Plus: Stock-based compensation |
|
|
629 |
|
|
|
777 |
|
|
|
957 |
|
|
|
1,592 |
|
|
Plus: Other expense |
|
|
33 |
|
|
|
- |
|
|
|
44 |
|
|
|
8 |
|
|
Less: (Gain) on retirement of debt |
|
|
(1,015 |
) |
|
|
- |
|
|
|
(1,015 |
) |
|
|
- |
|
|
Plus: Loss (Income) from discontinued operations, net of tax |
|
|
(1,334 |
) |
|
|
4,832 |
|
|
|
6,447 |
|
|
|
5,448 |
|
|
Adjusted EBITDA |
|
$ |
17,628 |
|
|
$ |
31,200 |
|
|
$ |
40,169 |
|
|
$ |
57,752 |
|
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|
|
|
|
|
|
|
|
|
|
*Per share amounts may not add due to rounding. |
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|
June 30, 2008 |
|
December 31, 2007 |
|
|
|
(unaudited) |
|
(as adjusted)2 |
SELECTED BALANCE SHEET DATA: |
|
(in thousands) |
|
Cash and cash equivalents |
|
$ |
10,681 |
|
$ |
24,247 |
|
|
Intangible assets, net |
|
|
1,373,145 |
|
|
1,310,321 |
|
|
Total assets |
|
|
1,570,428 |
|
|
1,663,342 |
|
|
Total debt (including current portion) |
|
|
744,122 |
|
|
815,504 |
|
|
Total liabilities |
|
|
973,269 |
|
|
1,030,736 |
|
|
Total stockholders' equity |
|
|
594,846 |
|
|
628,717 |
|
|
Minority interest in subsidiaries |
|
|
2,313 |
|
|
3,889 |
|
|
|
|
|
|
|
|
|
|
Current Amount Outstanding |
|
Applicable Interest Rate (a) |
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|
(in thousands) |
|
|
SELECTED LEVERAGE AND SWAP DATA: |
|
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|
|
|
Senior bank term debt (swap matures 6/16/2012) (a) |
|
$ |
25,000 |
|
|
6.72 |
% |
|
Senior bank term debt (swap matures 6/16/2010) (a) |
|
|
25,000 |
|
|
6.52 |
% |
|
Senior bank term debt (at variable rates) (b) |
|
|
134,100 |
|
|
5.13 |
% |
|
Senior bank term debt (at variable rates) (b) |
|
|
67,500 |
|
|
5.13 |
% |
|
8-7/8% senior subordinated notes (fixed rate) |
|
|
292,000 |
|
|
8.88 |
% |
|
6-3/8% senior subordinated notes (fixed rate) |
|
|
200,000 |
|
|
6.38 |
% |
|
Seller financed loan |
|
|
17 |
|
|
5.10 |
% |
|
Capital lease obligation |
|
|
527 |
|
|
6.24 |
% |
|
|
(a) |
|
A total of $50.0 million is subject to fixed rate swap agreements that became effective in June 2005. Under our fixed rate swap agreements, we pay a fixed rate plus a spread based on our leverage ratio, as defined in our Credit agreement. That spread is currently set at 2.25% and is incorporated into the applicable interest rates set forth above. |
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|
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|
|
(b) |
|
Subject to rolling 90-day LIBOR plus a spread currently at 2.25% and incorporated into the applicable interest rate set forth above. This tranche is not covered by swap agreements described in footnote (a). |