Radio One To Restate 2007-2010 Financials
July 29, 2010 at 4:15 AM (PT)
RADIO ONE informed the SEC WEDNESDAY (7/28) that it will restate its annual financials for 2007 through 2009 and the first quarter financials for 2010.
The company says, "the restatement is solely the result of an error of measurement and classification of a noncontrolling interest in REACH MEDIA as presented on the consolidated balance sheet and on the consolidated statement of changes in stockholders’ equity. The effects of this error overstated consolidated stockholders’ equity and understated mezzanine equity at the end of each reporting period by equal amounts. The adjustment will not affect any previously reported financial results in the consolidated statements of operations or consolidated statements of cash flows for the Company, and, hence, will not affect previously reported net income or earnings per share."
The trouble resulted from the company's noncontrolling interest being recorded at historical cost basis adjusted for the portion of earnings attributable to the noncontrolling interests, rather than at fair value.