Westwood One, Inc. Reports Results for the First Quarter 2010

        Westwood One, Inc. Reports Results for the First Quarter 2010

  PR Newswire

  NEW YORK, May 17

NEW YORK, May 17 /PRNewswire-FirstCall/ -- Westwood One, Inc. (Nasdaq: WWON),
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 first quarter ended March 31, 2010.

"In the first quarter of 2010, revenue increased by $6.9 million or 8.1%, from
$85.9 million to $92.8 million, which was Westwood One's first year-over-year
quarterly revenue increase since 2005," said Rod Sherwood, President. "Revenue
increased in both of our businesses, with Network Radio up 8.6% and Metro
Traffic up 7.5%, reflecting increased advertising spending both nationally and
locally. In addition to reflecting the initial signs of growth in the economy,
this increase is also a result of our strategic focus on meeting the needs of
our advertising and affiliate customers, and investing in areas with the most
potential for revenue growth."

Westwood One's earnings (on an Adjusted EBITDA basis) increased approximately
$9.0 million, from a loss of $6.9 million in the first quarter of 2009 to an
Adjusted EBITDA profit of $2.1 million in the first quarter of 2010. This
increase is primarily the result of increased advertising revenue, and lower
operating costs resulting from the Company's cost reduction initiatives.

"The measures we took in 2009 positioned us to take advantage of a recovering
economy with a re-structured balance sheet, a strengthened sales force, and
strong programming to attract targeted audiences for our advertisers and
affiliates," said Sherwood. "We are beginning to see positive results from our
actions, and early pacing for the second quarter is encouraging."

In Network Radio, Westwood One's leadership position in play-by-play sports
programming provided many opportunities to effectively reach consumers and
listeners. As the exclusive network radio partner of the NFL, Westwood One
broadcast every game of the NFL playoffs, capping off the season with a Super
Bowl broadcast which aired on a record-breaking 650 radio stations.

Westwood One's first quarter sports line-up also included the 2010 NCAA Men's
Basketball Championship, leading up to, and including, the Final Four, which
aired on a record-breaking 500 affiliate stations. In addition, Westwood One
and the Masters Tournament renewed the longest-running national radio
partnership in all of sports, maintaining Westwood One as the exclusive 2010
radio play-by-play provider from Augusta National Golf Club.

In another development, Westwood One announced an agreement with Harpo Radio
to bring The Gayle King Show to terrestrial broadcast radio listeners
nationwide in June 2010, as well as to launch a new nightly music program
hosted by the acclaimed newscaster and television personality entitled Night &
Gayle. In addition, Westwood One will also present a daily feature from Dr.
Mehmet Oz, host of daytime television's newest hit, The Dr. Oz Show .

Westwood One also introduced The Fab 30 Countdown with Perez Hilton in
partnership with C-Student Entertainment. The four-hour weekend countdown
show, broadcast live from Los Angeles, features hit music selected by
celebrity blogger Perez Hilton, plus his unique take on entertainment stories,
and celebrity interviews.

In Metro Traffic, the Company announced the acquisition of the Sigalert
business from Jaytu Technologies, LLC, a leading regional provider of traffic
information. Sigalert is a source for the most up-to-date, useful traffic
information in Southern California, one of the most highly congested traffic
areas in the country. In 2010, Westwood One's Sigalert product will provide
affiliate radio stations the best on-air, on-line and mobile traffic products,
and will give Metro's television affiliates a "three-screen" solution with a
consistent look across their television, Web and mobile products.

Three Months Ended March 31, 2010

For the three months ended March 31, 2010, revenue increased $6.9 million or
8.1%, to $92.8 million compared with $85.9 million for the three months ended
March 31, 2009. This increase in revenue for the first quarter was the first
year-over-year quarterly increase since the second quarter of 2005.

For the first three months of 2010, Network revenue increased to $55.6 million
from $51.2 million for the first three months of 2009, an increase of $4.4
million, or 8.6%. Network advertising sales, the largest component of Network
revenue, increased by 10%. This resulted primarily from increased sports
advertising revenue, including the 2010 Winter Olympics and the NCAA Men's
Basketball Championship and NFL games, as well as new programming for The
Weather Channel.

Metro Traffic revenue for the first three months of 2010 was $37.3 million, an
increase of $2.6 million, or 7.5%, from $34.7 million for the first three
months of 2009. The increase in Metro Traffic revenue was principally related
to an increase in revenue from television and radio advertising, primarily in
the automotive and quick service restaurant sectors.

The operating loss in the first quarter of 2010 was $6.6 million compared with
an operating loss of $19.6 million in 2009, or a decrease in operating loss of
$13.0 million. The decreased loss reflects the increase in revenue, lower
operating costs, and lower restructuring and special charges. These were
partially offset by higher depreciation and amortization expense of $2.4
million, primarily attributable to the increase in the fair value of
amortizable intangibles that were recorded as a result of the April 2009
refinancing ("Refinancing").

Adjusted EBITDA (1) for the first quarter of 2010 was $2.1 million compared
with a loss of $6.9 million in 2009. The improvement was due to increased
Network Radio, Metro television, and Metro Traffic radio revenue and lower
operating costs resulting from our cost reduction programs, primarily enacted
in late 2008 and 2009.

Interest expense in the first quarter of 2010 increased $2.3 million, or
70.6%, to $5.6 million from $3.3 million in the first quarter of 2009. This
reflects the higher average interest rates on our outstanding debt, which
resulted from the Refinancing, and increased interest expense related to
capital leases incurred in connection with the December 2009Culver City
sale-leaseback transaction. 

The Company's tax benefit decreased $2.2 million to $5.2 million in 2010
compared to $7.4 million in 2009 due to a lower pre-tax loss in the first
quarter of 2010 as compared to the first quarter of 2009, partially offset by
a higher effective tax rate.

For the first quarter of 2010, net loss was $6.9 million, or $0.34 per diluted
share, compared with a net loss in the first quarter of 2009 of $15.2 million,
or $33.95 per diluted share. Per share amounts reflect the effect of the
200-for-1 reverse stock split of our common stock that occurred on August 3,
2009. First quarter 2009 average share amounts are significantly lower than
first quarter 2010 as a result of the conversions of shares of preferred stock
in July and August 2009.

Free cash flow (2) in the first quarter of 2010 increased to $2.7 million from
$1.0 million in 2009, an increase of $1.7 million. This was due to the
favorable change in net loss of $8.3 million, partially offset by changes in
working capital of $5.6 million and higher capital expenditures of $1.0
million. 

2010 Outlook

We remain cautiously optimistic about growth in advertising spending during
2010. Industry research sources are revising their earlier forecasts slightly
upward, but local radio remains at relatively low levels of growth. Magna, a
division of IPG's Mediabrands, forecasts that local radio is expected to grow
by 0.6%. Other industry sources forecast increases in local radio of 2%, and
network radio of 6%.

Our strategies remain consistent with those stated at the end of 2009. While
continuing revenue gains will likely improve our operating leverage, we will
continue to make targeted investments in the business to enhance our
competitive position in 2010 and beyond. That said, we will continue to
evaluate our cost structure to maintain the appropriate levels of liquidity. 

We will continue to invest in new programming, while also identifying, and
investing in, opportunities for expanded content and distribution in Metro
television and digital. We will maintain our focus on improving our
infrastructure and we will continue to seek opportunities to complement our
organic growth strategy with strategic partnerships and select business
development activity like SigAlert.

About Westwood One

Westwood One, Inc. (NASDAQ: WWON) is one of the nation's largest providers of
network radio programming and one of the largest domestic outsourced 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 170 television stations. Westwood One also provides digital
and other cross-platform delivery of its Network and Metro Traffic content to
over 700 radio, television and newspaper affiliates.

Footnotes to Press Release

(1) Adjusted EBITDA is a non-GAAP financial measure that is reconciled to net
cash provided by (used in) operating activities, its most directly comparable
GAAP measure, in the accompanying financial tables. Adjusted EBITDA is
defined as net cash provided by (used in) operating activities adjusted to
exclude the following: interest expense, income tax expense (benefit),
restructuring charges, special charges, other non-operating income,
amortization of deferred financing costs and changes in assets and liabilities
including deferred tax assets and liabilities.

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 22.5% of the Company's equity as a result
of the 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. 

(2) Free cash flow is a non-GAAP financial measure that is reconciled to net
cash provided by (used in) operating activities, its most directly comparable
GAAP measure, in the accompanying financial tables. Free cash flow is defined
by the Company as net cash provided by (used in) operating activities, 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 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. 

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 (used in) 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 (used
in) 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 (used in) 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. 

Forward-Looking Statements

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: continued declines in our operating income; the availability of
additional financing; our future cash flow from operations and access to
additional financing; our ability to achieve our financial forecast; a
significant amount of indebtedness that contain various covenants, which could
adversely affect our liquidity and future business operations and accelerate
repayment; changes to our CBS arrangement; increased proliferation of free
traffic content; maintenance of an effective system of internal controls;
technological changes and innovations; failure to obtain or retain the rights
in popular programming; acceptance of our content; consolidation in the radio
broadcast industry; further impairment charges; Gores' influence over our
corporate actions; and changes in governmental regulations and policies and
actions of federal and state regulatory bodies. Our key risks are described in
our reports filed with the SEC, including our Annual Report on Form 10-K for
the year ending December 31, 2009 and our Quarterly Report on Form 10-Q for
the quarter ended March 31, 2010. 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
                    CONSOLIDATED STATEMENT OF OPERATIONS
             (In thousands, except share and per share amounts)
                                 (unaudited)
                                Successor Company      Predecessor Company
                                Three Months Ended      Three Months Ended
                                  March 31, 2010          March 31, 2009
                                 $            $           
Revenue                                   92,842                   85,867
Operating costs                             89,341                     91,393
Depreciation and amortization                4,496                      2,063
Corporate general and
administrative expenses                      3,019                      2,766
Restructuring charges                          743                      3,440
Special charges                              1,823                      5,809
Total operating costs                       99,422                    105,471
Operating loss                             (6,580)                   (19,604)
Interest expense                             5,565                      3,263
Other expense (income)                           1                      (300)
Loss before income tax                    (12,146)                   (22,567)
Income tax benefit                         (5,234)                    (7,381)
                                 $            $           
Net loss                                (6,912)                  (15,186)
Net loss attributable to common  $            $           
stockholders                            (6,912)                  (16,650)
(Loss) earnings per share
        Common Stock
                                 $            $           
                  Basic                 (0.34)                  (33.95)
                                 $            $           
                  Diluted               (0.34)                  (33.95)
        Class B stock
                                                      $           
                  Basic                                              -
                                                      $           
                  Diluted                                            -
Weighted average shares
outstanding:
        Common Stock
                  Basic                     20,544                        490
                  Diluted                   20,544                        490
        Class B stock
                  Basic                                                     1
                  Diluted                                                   1

                              WESTWOOD ONE, INC
                         CONSOLIDATED BALANCE SHEETS
                  (In thousands, except per share amounts)
                                         March 31, 2010     December 31, 2009
                                           (unaudited)          (audited)
ASSETS
Current assets:
                                             $        $        
  Cash and cash equivalents                         6,794           4,824
  Accounts receivable, net of
  allowance for doubtful accounts                   86,487             87,568
  Income tax receivable                             12,945             12,355
  Prepaid and other assets                          19,278             20,994
       Total current assets                        125,504            125,741
Property and equipment, net                         35,446             36,265
Intangible assets, net                             100,671            103,400
Goodwill                                            39,745             38,917
Other assets                                         3,276              2,995
                                                            $        
       TOTAL ASSETS                     $     304,642           307,318
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
                                                            $        
  Accounts payable                     $      44,592           40,164
  Amounts payable to related parties                   490                129
  Deferred revenue                                   2,517              3,682
  Accrued expenses and other
  liabilities                                       30,183             28,864
  Current maturity of long-term debt                10,000             13,500
       Total current liabilities                    87,782             86,339
Long-term debt                                     126,967            122,262
Deferred tax liability                              47,781             50,932
Due to Gores                                        10,984             11,165
Other liabilities                                   20,067             18,636
       TOTAL LIABILITIES                           293,581            289,334
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Common stock, $.01 par value:
authorized: 5,000,000 shares 
  issued and outstanding: 20,544
  (2010) and 20,544 (2009)                             205                205
Class B stock, $.01 par value:
authorized: 3,000 shares;
  issued and outstanding: 0                              -                  -
Additional paid-in capital                          81,171             81,268
Net unrealized gain                                    197                111
Accumulated deficit                               (70,512)           (63,600)
       TOTAL STOCKHOLDERS' EQUITY                   11,061             17,984
       TOTAL LIABILITIES AND                                $        
       STOCKHOLDERS' EQUITY             $     304,642           307,318

                              WESTWOOD ONE, INC
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                 (unaudited)
                                  Successor Company      Predecessor Company
                                 Three Months Ended      Three Months Ended
                                   March 31, 2010          March 31, 2009
CASH FLOWS FROM OPERATING
ACTIVITIES:
                                $             $          
Net loss                                    (6,912)              (15,186)
Adjustments to reconcile net
loss to net cash
 provided by operating
activities:
 Depreciation and amortization                  4,496                   2,063
 Deferred taxes                               (4,306)                 (6,698)
 Non-cash stock compensation                    1,059                   1,352
 Amortization of deferred
 financing costs                                    -                     308
 Net change in assets and
liabilities                                    10,578                  20,295
 Net cash provided by operating
 activities                                     4,915                   2,134
CASH FLOWS FROM INVESTING
ACTIVITIES:
 Capital expenditures                         (2,183)                 (1,169)
 Net cash used in investing
 activities                                   (2,183)                 (1,169)
CASH FLOWS FROM FINANCING
ACTIVITIES:
 Proceeds from Revolving Credit
 Facility                                       3,000                       -
 Repayments of Senior Notes                   (3,500)                       -
 Payments of capital lease
 obligations                                    (262)                   (203)
 Net cash used in financing
 activities                                     (762)                   (203)
  Net increase in cash and
 cash equivalents                               1,970                     762
  Cash and cash equivalents
 at beginning of period                         4,824                   6,437
  Cash and cash equivalents   $             $          
 at end of period                             6,794                7,199

                              WESTWOOD ONE, INC
                       ADJUSTED EBITDA RECONCILIATION
                               (In thousands)
                                               Three Months Ended
                                                    March 31,
                                          2010                    2009
Net  cash  provided  by   operating 
activities                               $   4,915            $   2,134
Interest expense                                5,565                   3,263
Income tax benefit                            (5,234)                 (7,381)
Restructuring and special charges 
(a)                                             3,162                   9,249
Other     non-operating     expense 
(income)                                            1                   (300)
Deferred taxes                                  4,306                   6,698
Amortization of deferred  financing 
costs                                               -                   (308)
Change in assets and liabilities             (10,578)                (20,295)
Adjusted EBITDA                          $   2,137           $   (6,940)
(a) Includes $597 of special charges classified as operating costs in the
Statement of Operations for the three months ended March 31, 2010.

                              WESTWOOD ONE, INC
                        FREE CASH FLOW RECONCILIATION
                               (In thousands)
                                            Three Months Ended March 31,
                                             2010                2009
Net cash provided by operating         $            $        
activities                                         4,915                2,134
(Less) Capital expenditures                      (2,183)              (1,169)
                                       $          $         
Free Cash Flow                                     2,732                 965

SOURCE Westwood One, Inc.

Website: http://www.westwoodone.com
Contact: Chris Miller of Westwood One, +1-212-641-2108,
chris_miller@westwoodone.com
 
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