Radio One Restates Financials
June 15, 2007 at 5:45 AM (PT)
RADIO ONE has restated its financials for 1999 through 2005 (NET NEWS 2/21) and disclosed that it lost $6.7 million (7 cents/share) last year, off from a profit of $48.6 million (44 cents/share) in 2005. The company's overall revenue fell slightly to $367 million, blamed on the problems at the company's LOS ANGELES station.
The restatement notice filed with the SEC, which disclosed that an investigation by law firm COVINGTON AND BURLING found no fraud or intentional wrongdoing, reduced the company's profit in that time by $10.1 million due to stock option recording errors, with another error correction widening the company's net operating loss by $1.9 million. The company admitted to issuing nine improperly backdated option grants totalling $7.8 million to its executive officers and directors, mostly in OCTOBER 2000 and APRIL 2001.
The SEC continues to probe RADIO ONE's option practices, and the late 2006 financial statement has NASDAQ threatening the company with delisting.
Read the SEC 10-K annual report summary section by clicking here.