Radio One May Need To Restate Earnings Dating Back To 1999
February 21, 2007 at 3:35 PM (PT)
RADIO ONE announced today (2/21) that it may need to restate financial data because preliminary findings show incorrect dates on some stock option grants made from 1999 to 2005. In a filing with the SEC, the company said that it does not expect any restatement to impact its previously reported revenues, cash flows or total stockholders' equity. Still, RADIO ONE says any financial statements released since JANUARY 1, 1999 "should no longer be relied upon."
"In light of these preliminary findings, management and the company's audit committee anticipate that the company will be required to restate its historical financial statements to record additional non-cash stock-based compensation expense with respect to those stock option grants over the vesting periods of the options," RADIO ONE said in a press release. "The company has not yet determined the tax consequences that may result from these matters or whether tax consequences will give rise to monetary liabilities which may have to be satisfied in any future period."
The full impact of the restatement will be set forth in RADIO ONE's annual report for the fiscal year ended DECEMBER 31, 2006.