NEW YORK, Nov. 9 /PRNewswire-FirstCall/ -- Westwood One, Inc. (OTC Bulletin Board: WWOZ), a leading independent provider of network radio content and traffic information to the radio, television and on-line sectors, today reported operating results for the third quarter ended September 30, 2009.
"Westwood One is positioned to take advantage of an economic recovery once advertising spending in the radio industry begins to improve," said Rod Sherwood, President and CFO of Westwood One. "Our strategic focus has been on realigning our capital structure, reducing operating expenses, and completing our operational turnaround, along with implementing revenue initiatives. We have invested in the strategic revenue drivers of the business by developing new programming, increasing our sales force and expanding our distribution channels," said Sherwood. "We are single-mindedly focused on our core mission of meeting our affiliates' and advertising customers' needs with quality programming and services that will help build their businesses."
Business Update
In September, Westwood One announced it will be the exclusive affiliate and advertising sales representative for The Weather Channel Radio Network (TWCRN), which serves nearly 700 radio stations in the U.S. and is in 42 of the top 50 markets. "Westwood One is bringing the best known brand of weather information to our affiliate and advertising partners to help them build their audiences with listeners who seek 'must-have' weather information," said Sherwood.
Also in September, the Company announced the expansion of The Billy Bush Show to CHR audiences nationwide. In addition, the Company signed Dennis Miller to a new multi-year agreement to continue hosting The Dennis Miller Show, airing on over 250 stations nationwide, including those in 22 of the top 25 markets. Fred Thompson, host of The Fred Thompson Show, continues to generate buzz in both the political and entertainment worlds. New network digital products included three mobile iPhone applications for The Dennis Miller Show, The Fred Thompson Show, and Loveline. Westwood One also produced the first ever radio remote for 15 key top market stations at the MTV VMA Awards from New York City which was sponsored on the Westwood One network.
In total, Westwood One introduced twelve new network programs and features so far this year.
In sports, Westwood One announced that it will be the exclusive radio broadcaster for the 2010 Olympic Winter Games live from Vancouver, Canada from February 12 - 28, 2010, in partnership with U.S. Olympic rightsholder NBC Universal. Also in sports, Westwood One continues to be the leader in broadcasting the most play-by-play sports in America, including a full schedule of NFL games, The NFL Playoffs and The Super Bowl. The Company's NFL prime time package is ahead of last year's pace with 450 stations cleared.
In the Metro Traffic business, the Company launched a new mobile product, Traffic on the Go, for iPhones, BlackBerrys and other mobile devices, at the National Association of Broadcasters (NAB) Radio convention in Philadelphia. Traffic on the Go is the easiest-to-use mobile traffic service delivering instant, live camera images of traffic conditions to smartphones and other mobile devices.
The Company also increased the inventory of 15 second sponsorships by 10% through September, by converting stations from 10 second to 15 second sponsorships.
In television, Metro Traffic introduced market-leading technology products to its affiliates including the new TrafficLand broadcaster tool, TrafficLand's video distribution system and "Traffic on the Go." As part of the Company's multi-platform strategy, Metro Traffic's digital advertising network increased from 445 to 526 radio, TV and newspaper affiliates.
"Metro Traffic is the only company offering such a powerful combination of multi-platform traffic solutions to consumers today," said Sherwood.
2009 Third Quarter Radio Business Environment
Industry sources estimate that revenue for the radio industry declined by 19% in the third-quarter versus the comparable period in 2008. This was an improvement from previous reports that radio industry revenues were down about 23% in the first half of 2009 versus the comparable period in 2008.
Revenues for the radio industry were also impacted by the timing of the television upfront in 2009. In previous years, the TV upfront (where advertisers purchase commercial airtime for the upcoming television season several months before the season begins), concluded in the second quarter. This year, upfront advertising sales were not completed until the end of August. During this period, advertisers were also slow to commit to buying commercial airtime for the third quarter of 2009, which kept additional downward pressure on radio revenues.
Three Months Ended September 30, 2009
Revenue for the third quarter of 2009 was $78.5 million, a decrease of $17.8 million, or 18.5%, compared to revenue of $96.3 million in the third quarter of 2008. The decrease in revenue is primarily attributable to significant declines in advertising revenue in the radio industry that have continued throughout 2009. The revenue decrease was in line with industry trends of 19% declines in the radio business.
Network radio revenue was $40.4 million, a decrease of $7.7 million or 16%, compared to revenue of $48.1 million in the comparable quarter in 2008. The decrease was principally due to a decline in advertising spending which affected our Network revenue from news and talk programs and sport events, cancellation of certain programs, and lower revenues from our RADAR network inventory.
Revenue for Metro Traffic was $38.0 million, a decrease of $10.2 million or 21%, compared to $48.2 million in the third quarter of 2008. The decline was principally due to a weak local advertising marketplace spanning various categories, including retail and telecommunications.
While the radio industry experienced continued downward pressures on advertising revenues, Westwood One maintained its emphasis on reducing operating expenses with a range of cost-saving initiatives. Strategically, these cost-saving initiatives have resulted in increased operating efficiency and have helped establish a foundation for future long-term growth. Westwood One continued to achieve significant cost reductions in the third quarter, primarily due to its Metro Traffic re-engineering and other costs savings initiatives.
Operating expenses for the quarter decreased $11.2 million, or 13.0%, to $74.9 million as compared to operating expenses of $86.1 million in the comparable period of 2008. We have recognized $42.0 million of savings from both the Metro Traffic re-engineering and additional cost reduction initiatives undertaken through the end of the third quarter of 2009, of which $5.5 million was recognized during 2008. The Company continues to be on track to achieve our previously announced goal of annual operating savings of $53.0 to $61.0 million in 2009. These savings will be offset somewhat by specific strategic investment areas, including: strengthening the Company's sales force in both the Network and Metro Traffic businesses, investments in new programming, investments in the digital area, improvements in systems infrastructure, TV inventory outlays, incremental costs related to our TrafficLand license agreement, and increased expenses under the Company's distribution arrangement with CBS Radio, which has resulted partly from increased clearance levels by CBS Radio.
Operating loss in the third quarter of 2009 was $60.1 million, compared with operating loss of $7.6 million for the third quarter of 2008. The increased operating loss is primarily due to a non-cash goodwill impairment charge of $50.4 million.
Depreciation and amortization increased $5.7 million to $8.1 million compared to $2.4 million in the comparable quarter in 2008. The increase was principally due to the increase in amortization for the fair value of intangibles recorded as a result of the application of acquisition accounting and to increased depreciation and amortization for additional investments in systems and infrastructure, partially offset by decreased depreciation for leasehold improvements from the closure and consolidation of facilities in connection with the Metro re-engineering that began in the third quarter 2008.
Special and restructuring charges in the third quarter of 2009 were $2.2 million compared with $11.3 million in the comparable quarter of 2008.
Adjusted EBITDA for the third quarter of 2009, defined as net income (loss) adjusted to exclude non-cash items, specifically, depreciation and amortization, stock-based compensation and goodwill impairment, and cash items including interest expense, income taxes and restructuring and special charges, is $2.2 million compared with $8.1 million in the third quarter of 2008, a decrease of $5.9 million. The decline in Adjusted EBITDA is primarily due to the decrease in revenue which was impacted by the current economic downturn and related weakness in the advertising market, partially offset by a reduction in operating costs attributable to the Metro Traffic re-engineering and other cost savings initiatives. Adjusted EBITDA is not a performance measure calculated in accordance with Generally Accepted Accounting Principles ("GAAP").
In the third quarter of 2009, free cash flow, defined as net income (loss), plus non-cash items, specifically depreciation and amortization, stock-based compensation, goodwill impairment and amortization of deferred financing costs, and cash items including restructuring and special charges, less capital expenditures, decreased $7.9 million to $8.0 million, compared with $15.9 million, in 2008's third quarter. The change in free cash flow primarily reflects the increased net loss before impairment charges, partially offset by lower capital expenditures.
Capital expenditures were approximately $0.8 million in the current quarter compared with $0.2 million in the third quarter of 2008. The increase in capital expenditures reflects our investments in systems and infrastructure.
Interest expense was $4.9 million, an increase of $1.1 million, or 28.9%, compared to $3.8 million in the third quarter of 2008. The increase reflects the higher interest rate on our new debt from our April 2009 refinancing, partially offset by the reduction in the debt level.
Income tax benefit was $11.6 million, an increase of $12.8 million, compared to an expense of $1.2 million in the third quarter of 2008.
Net loss for the third quarter was $53.5 million, or $10.03 per share, compared with a net loss of less than $0.01 million, or $2.88 share, in the third quarter of 2008. This loss was largely due to the goodwill impairment of $50.4 million. Per share amounts reflect the effect of the 200:1 reverse stock split of our common stock consummated on August 3, 2009.
Economic conditions, namely the weak third quarter (which included a decline in advertising budgets and orders) and what we believe to be the likely continuation of these economic conditions caused us to reduce our forecast and perform a goodwill impairment assessment. Accordingly, in the third quarter, we performed a Step 1 analysis in accordance with Accounting Standards Codification 350 - Intangible, Goodwill and Others by comparing our recalculated fair value based on our new forecast to our current carrying value. The results indicated an impairment in our Metro Traffic segment and we performed a Step 2 analysis to compare the implied fair value of goodwill for Metro Traffic with the carrying value of its goodwill. As a result of the Step 2 analysis we recorded a non-cash impairment charge of $50.4 million. This non-cash charge does not have any impact on our future operations, nor does it affect our liquidity, Adjusted EBITDA, Free Cash Flow, cash flow from operating activities or debt covenants. The majority of the goodwill impairment charge is not deductible for income tax purposes. After this impairment, the Company's goodwill balances will be approximately $35.8 million.
2009 Company Outlook
"By realigning our capital structure, improving operational efficiency, expanding our sales force, and improving our systems infrastructure, we have strengthened the Company for the future," said Sherwood. "We are currently seeing some improvement in the pace of the industry, but remain cautious about the outlook for the rest of 2009."
"We will continue to focus on developing compelling branded programming in Network radio, delivering an enhanced technology-based product in Metro Traffic, and leveraging these and other revenue initiatives with a strengthened sales organization. We will also maintain a strict focus on keeping our operating expenses down."
"These strategies support our single-minded mission of meeting our customers' needs as we look toward an improved economic environment in 2010."
About Westwood One
Westwood One, Inc. (BULLETIN BOARD: WWOZ) is one of the nation's largest providers of network radio programming and one of the largest domestic providers of traffic information in the U.S. Westwood One serves approximately 5,000 radio and 170 television stations in the U.S. Westwood One provides over 150 news, sports, music, talk and entertainment programs, features and live events to numerous media partners. Through its Metro Traffic business, Westwood One provides traffic reporting and local news, sports and weather to approximately 2,200 radio and television stations. Westwood One also provides digital and other cross-platform delivery of its Network and Metro Traffic content to over 527 radio, television and newspaper affiliates.
Certain statements in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The words or phrases "guidance," "expect," "anticipate," "estimates" and "forecast" and similar words or expressions are intended to identify such forward-looking statements. In addition any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this release include, but are not limited to: changes in economic conditions in the U.S. (which have constrained consumer spending and affected advertising revenue and rates), and in other countries in which Westwood One currently does business (both generally and relative to the broadcasting industry); continued declines in our operating income; our ability to achieve our financial forecast; the availability of additional financing; changes to our CBS arrangement; further impairment charges; Gores' influence over our corporate actions; the increased proliferation of free traffic content; our future cash flow from operations and access to additional financing; advertiser spending patterns, including the notion that orders are being placed in close proximity to air, limiting visibility of demand; changes in the level of competition for advertising dollars; technological changes and innovations; fluctuations in programming costs; acceptance of our content; shifts in population and other demographics; changes in labor conditions; and changes in governmental regulations and policies and actions of federal and state regulatory bodies. Other key risks are described in the Company's reports filed with the Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 10-K for the year ending December 31, 2008, and the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009. Except as otherwise stated in this news announcement, Westwood One, Inc. does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
WESTWOOD ONE, INC. SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION Adjusted EBITDA
The following tables set forth Westwood One's Adjusted EBITDA for the three and nine month periods ended September 30, 2009 and 2008. The Company defines "Adjusted EBITDA" as net income (loss) from its Statement of Operations adjusted to exclude the following non-cash items, specifically, depreciation and amortization, stock-based compensation and goodwill impairment, and cash items including interest expense, income taxes and restructuring and special charges. Adjusted EBITDA is not a performance measure calculated in accordance with GAAP.
Adjusted EBITDA is used by the Company to calculate its compliance with its debt covenants under the terms of its senior notes and senior credit facility. The Company believes this measure is relevant and useful for investors because it allows investors to view performance in the same manner as the Company's lenders (who also own approximately 23.0% of the Company's equity as a result of the April 2009 refinancing, excluding Gores).
Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, consolidated statements of operations and cash flow data prepared in accordance with GAAP. Adjusted EBITDA as the Company calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company's ability to fund its cash needs. The Company uses Adjusted EBITDA as a liquidity measure, which is different from operating cash flow, the most directly comparable GAAP financial measure calculated and prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions which are excluded. As required by the SEC, the Company has provided below a reconciliation of Adjusted EBITDA to operating cash flow, the most directly comparable amount reported under GAAP.
Three Months Nine Months Ended Ended September 30 September 30 -------------- -------------- (in millions) 2009 2008 2009 2008 ------ ------ ------ ------ Net Cash (Used) in Provided by Operating Activities (2.2) 14.0 (17.3) 9.2 Interest expense 4.9 3.7 12.8 13.5 Income Tax (Benefit) Expense (11.5) 1.2 (21.8) (2.0) Restructuring & Special Charges 2.2 11.5 20.8 20.4 Other non-operating income - 0.1 (0.6) Deferred Taxes 18.0 2.9 22.7 10.1 Amortization of Deferred Financing costs - (0.5) (0.3) (1.3) Change in assets and liabilities (9.2) (24.8) (12.0) (16.5) ------ ------ ------ ------ Adjusted EBITDA 2.2 8.1 4.3 33.4 ====== ====== ====== ====== Free Cash Flow
Free cash flow is defined by the Company as net income (loss), plus non-cash items, specifically depreciation and amortization, stock-based compensation, goodwill impairment and amortization of deferred financing costs, and cash items including restructuring and special charges, less capital expenditures. The Company uses free cash flow, among other measures, to evaluate its operating performance. Management believes free cash flow provides investors with an important perspective on the Company's cash available to service debt and the Company's ability to make strategic acquisitions and investments, maintain its capital assets, repurchase its common stock and fund ongoing operations. As a result, free cash flow is a significant measure of the Company's ability to generate long term value. The Company believes the presentation of free cash flow is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. In addition, free cash flow is also a primary measure used externally by the Company's investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry. Free cash flow per fully diluted weighted average common shares outstanding is defined by the Company as free cash flow divided by the fully diluted weighted average common shares outstanding.
As free cash flow is not a measure of performance calculated in accordance with GAAP, free cash flow should not be considered in isolation of, or as a substitute for, net income as an indicator of operating performance or net cash provided by operating activities as a measure of liquidity. Free cash flow, as the Company calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, free cash flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of the Company's ability to fund its cash needs. In arriving at free cash flow, the Company adjusts net cash provided by operating activities to remove the impact of cash flow timing differences to arrive at a measure which the Company believes more accurately reflects funds available for discretionary use. Specifically, the Company adjusts net cash provided by operating activities (the most directly comparable GAAP financial measure) for capital expenditures, special charges, and deferred taxes, in addition to removing the impact of sources and or uses of cash resulting from changes in operating assets and liabilities. Accordingly, users of this financial information should consider the types of events and transactions which are not reflected. The Company provides below a reconciliation of free cash flow to the most directly comparable amount reported under GAAP, net cash provided by operating activities.
The following table presents a reconciliation of the Company's net loss to free cash flow:
Free Cash Flow calculation Three Months Nine Months Ended Ended September 30 September 30 -------------- -------------- (in millions) 2009 2008 2009 2008 ------ ------ ------ ------ Net (Loss) (53.5) - (78.7) (205.1) Plus (Minus) Depreciation and amortization 8.1 2.4 16.5 8.8 Goodwill and Intangible impairment, restructuring & special charges 52.7(a) 11.3 71.3(a) 226.4(b) Stock-based compensation 1.5 1.8 4.5 4.2 Amortization of deferred financing cost - 0.5 0.3 1.3 (Less) Capital expenditures (0.8) (0.1) (3.7) (6.2) ------ ------ ------ ------ Free Cash Flow 8.0 15.9 10.2 29.4 ====== ====== ====== ====== Diluted weighted-average shares outstanding (c) 13.1 0.5 4.8 0.5 ====== ====== ====== ====== Free Cash Flow per Share $0.61 $31.55 $2.14 $60.62 ====== ====== ====== ====== (a) Includes goodwill impairment of $50.4 (b) Includes goodwill impairment of $206.1 (c) Includes the effect of a 200:1 reverse stock split of our Common stock, consummated on August 3, 2009. Combined Statement of Operations
As a result of our April 2009 refinancing, we applied the acquisition method of accounting, as described by SFAS 141R, and applied the SEC rules and guidance regarding "push down" accounting treatment. Accordingly, our consolidated financial statements and transactional records prior to the closing of the refinancing reflect the historical accounting basis in our assets and liabilities and are labeled predecessor company, while such records subsequent to the refinancing are labeled successor company and reflect the push down basis of accounting for the new fair values in our financial statements. This is presented in our consolidated financial statements by a vertical black line division which appears between the columns entitled predecessor company and successor company on the statements and relevant notes. The black line signifies that the amounts shown for the periods prior to and subsequent to the refinancing are not comparable. Management, however, continues to use such statements to measure the Company's performance against comparable prior periods. For purposes of presenting a comparison of our 2009 results to prior periods, we have presented our 2009 results as the mathematical addition of the predecessor company and successor company periods. We believe that this presentation provides the most meaningful information about our results of operations. This approach is not consistent with GAAP, may yield results that are not strictly comparable on a period-to-period basis, and may not reflect the actual results we would have achieved.
Below is a reconciliation of our financial statements to this non-GAAP measure:
Successor Company Predecessor Company Combined Total ================= =================== ============== For the For the For the Period Period Nine months ended April 24, 2009 to January 1, 2009 to September 30, 2009 September 30, 2009 April 23, 2009 -------- -------- -------- NET REVENUE $136,518 $111,474 $247,992 -------- -------- -------- Operating Costs 127,039 111,580 238,619 Depreciation and Amortization 13,909 2,585 16,494 Corporate General and Administrative Expenses 5,337 4,248 9,585 Goodwill and Intangible Impairment 50,501 - 50,501 Restructuring Charges 2,826 3,976 6,802 Special Charges 1,188 12,819 14,007 -------- -------- -------- 200,800 135,208 336,008 -------- -------- -------- OPERATING (LOSS) (64,282) (23,734) (88,016) Interest Expense (Income) 9,618 3,222 12,840 Other Income 66 (359) (293) -------- -------- -------- (LOSS) BEFORE INCOME TAX (73,966) (26,596) (100,562) INCOME TAX (BENEFIT) (14,231) (7,635) (21,866) -------- -------- -------- NET (LOSS) $(59,735) $(18,961) $(78,696) ======== ======== ======== WESTWOOD ONE, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) Successor Company Predecessor Company ================= =================== September 30, December 31, 2009 2008 ----------------- ------------------- (derived from (unaudited) audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $4,568 $6,437 Accounts receivable 80,864 94,273 Prepaid and other assets 21,834 18,758 ----------------- ------------------- Total Current Assets 107,266 119,468 Property and equipment, net 34,385 30,417 Goodwill 35,752 33,988 Intangible assets, net 106,519 2,660 Deferred tax asset - 14,220 Other assets 2,498 4,335 ----------------- ------------------- TOTAL ASSETS $286,420 $205,088 ================= =================== LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable $38,268 $27,807 Amounts payable to related parties 213 22,680 Deferred revenue 7,229 2,397 Accrued expenses and other liabilities 23,834 25,565 Current maturity of long-term debt - 249,053 ----------------- ------------------- Total Current Liabilities 69,544 327,502 Long-term debt 129,395 - Deferred tax liability 45,650 - Due to Gores 11,027 - Other liabilities 10,298 6,993 ----------------- ------------------- TOTAL LIABILITIES 265,914 334,495 ----------------- ------------------- Redeemable Preferred Stock: $.01 par value, authorized: 10,000 shares; issued and outstanding: 75 shares of 7.5% Series A Convertible Preferred Stock; liquidation preference $1,000 per share, plus accumulated dividends - 73,738 ----------------- ------------------- TOTAL PREFERRED STOCK - 73,738 ----------------- ------------------- SHAREHOLDERS' (DEFICIT) EQUITY Common stock, $.01 par value: authorized: 5,000,000 shares (2009) and 300,000 (2008); issued and outstanding: 20,312 (2009) and 101,308 (2008) 203 1,013 Class B stock, $.01 par value: authorized: 3,000 shares; issued and outstanding: - 0 - (2009) and 292 (2008) - 3 Additional paid-in capital 80,076 293,120 Net unrealized gain (38) 267 Accumulated deficit (59,735) (497,548) ----------------- ------------------- TOTAL SHAREHOLDERS' EQUITY (DEFICIT) 20,506 (203,145) ----------------- ------------------- TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY (DEFICIT) $286,420 $205,088 ================= =================== WESTWOOD ONE, INC. CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per share amounts) (unaudited) Successor Company Predecessor Company ================= =================== Three Months For the Three Months For the Nine Months Ended Period Ended Period Ended April 24, Jan. 1, 2009 to 2009 to Sept. 30, Sept. 30, Sept. 30, April 23, Sept. 30, 2009 2009 2008 2009 2008 -------- -------- -------- -------- -------- NET REVENUE $78,474 $136,518 $96,299 $111,474 $303,298 -------- -------- -------- -------- -------- Operating Costs 74,922 127,039 86,142 111,580 265,782 Depreciation and Amortization 8,064 13,909 2,366 2,585 8,763 Corporate General and Administrative Expenses 2,930 5,337 4,049 4,248 8,510 Goodwill and Intangible Impairment 50,501 50,501 - - 206,053 Restructuring Charges 1,372 2,826 10,598 3,976 10,598 Special Charges 820 1,188 699 12,819 9,756 -------- -------- -------- -------- -------- 138,609 200,800 103,854 135,208 509,462 -------- -------- -------- -------- -------- OPERATING (LOSS) INCOME (60,135) (64,282) (7,555) (23,734) (206,164) Interest Expense 4,925 9,618 3,758 3,222 13,509 Other Expense (Income) 70 66 (12,453) (359) (12,538) -------- -------- -------- -------- -------- (Loss) Income before Income Tax (65,130) (73,966) 1,140 (26,597) (207,135) Income Tax (Benefit) Expense (11,581) (14,231) 1,150 (7,635) (2,044) -------- -------- -------- -------- -------- NET (LOSS) $(53,549) $(59,735) $(10) $(18,962) $(205,091) ======== ======== ======== ======== ======== NET (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $(131,686) $(141,283) $(1,451) $(22,037) $(206,720) ======== ======== ======== ======== ======== (Loss) per Share Common Stock Basic $(10.03) $(18.19) $(2.88) $(43.64) $(426.03) ======== ======== ======== ======== ======== Diluted $(10.03) $(18.19) $(2.88) $(43.64) $(426.03) ======== ======== ======== ======== ======== Class B Stock Basic $- $- $- $- $- ======== ======== ======== ======== ======== Diluted $- $- $- $- $- ======== ======== ======== ======== ======== Weighted Average Shares Outstanding: Common Stock Basic 13,135 7,769 504 505 485 ======== ======== ======== ======== ======== Diluted 13,135 7,769 504 505 485 ======== ======== ======== ======== ======== Class B Stock * Basic - 146 292 292 292 ======== ======== ======== ======== ======== Diluted - - 292 292 292 ======== ======== ======== ======== ======== * Class B Stock was converted into Common Stock prior to effectiveness of reverse stock split Successor Company Predecessor Company ================== ====================================== For the For the For the Period Period Nine months ended April 24, 2009 to January 1, 2009 to September 30, 2009 September 30, 2009 April 23, 2009 ------------------ ------------------- ------------------ CASH FLOW FROM OPERATING ACTIVITIES: Net (loss) $(59,735) $(18,961) $(205,091) Adjustments to reconcile net (loss) to net cash provided by operating activities: Depreciation and amortization 13,909 2,585 8,763 Goodwill and Intangible asset impairment 50,501 - 206,053 Loss on disposal of property and equipment 173 188 - Deferred taxes (15,824) (6,874) (10,149) Non-cash stock compensation 2,385 2,110 4,240 Gain on sale of marketable securities - - (12,420) Amortization of deferred financing costs - 331 1,272 Net change in assets and liabilities (net of effect of Refinancing): (7,887) 19,844 16,533 ------------------ ------------------- --------------- Net Cash (Used) in/Provided by Operating Activities (16,478) (777) 9,201 ------------------ ------------------- --------------- CASH FLOW FROM INVESTING ACTIVITIES: Capital expenditures (2,355) (1,384) (6,222) Proceeds from sale of marketable securities - - 12,741 ------------------ ------------------- --------------- Net Cash (Used) in/Provided by Investing Activities (2,355) (1,384) 6,519 ------------------ ------------------- --------------- CASH FLOW FROM FINANCING ACTIVITIES: Issuance of common stock - - 22,750 Issuance of series A convertible preferred stock and warrants - - 74,178 Issuance of series B convertible preferred stock 25,000 - - Debt repayments (25,000) - (113,000) Payments of capital lease obligations (376) (271) (538) Proceeds from term loan 20,000 - - Deferred financing costs - - (1,688) Deferred stock issuance costs (228) - - ------------------ ------------------- -------------- Net Cash Provided by/ (Used) in Financing Activities 19,396 (271) (18,298) ------------------ ------------------- --------------- Net Increase (Decrease) in Cash and Cash Equivalents 563 (2,432) (2,578) Cash and Cash Equivalents at Beginning of Period 4,005 6,437 6,187 ------------------ ------------------- --------------- Cash and Cash Equivalents at End of Period $4,568 $4,005 $3,609 ================== =================== ===============
Westwood One, Inc.
CONTACT: INVESTOR CONTACT, Rod Sherwood, +1-212-373-5311, PRESS CONTACT,
Chris Miller, +1-212-641-2108
Web Site: http://www.westwoodone.com/
