Having announced preliminary Q1 financial results when its board of directors approved a stock buyback last month, Radio One has now updated its preliminary numbers. One big change is due to a hit from the tax man.
Rather than $65.4 million in revenues, Radio One is now anticipating $65.0 million in revenues for Q1. That’s still a gain of 10.2% from a year ago, but not quite as good as the 10.9% gain of the previous guidance. Adjusted EBITDA is now expected to be in a range of $9.9-10.9 million, which is up from the previous $9.2-10.2 range.
The big revision is in the net loss per share for Q1, which had previously been pegged at 37-39 cents. That’s now grown to $1.22-1.24.
“The increase in the anticipated net loss is primarily the result of a non-cash charge related to its provision for income taxes. The Company now anticipates a provision for income taxes for the quarter ended March 31, 2011 of $45.6 million irrespective of the Company continuing to hold net operating losses of approximately $548.0 million. Approximately $45.3 million of the amount reflects the increase in deferred tax liabilities associated with the amortization of certain of the Company’s radio broadcast licenses for tax purposes,” Radio One explained in an announcement on Tuesday (5/3).