Radio One may restate data
EmptyWASHINGTON -- Radio One Inc. said Wednesday it may need to restate financial data based on its preliminary findings of incorrect dates on some stock option grants made from 1999 to 2005.
Radio One, which owns or operates 70 radio stations, said all financial statements issued since Jan. 1, 1999 can no longer be relied upon.
In a filing with the U.S. Securities and Exchange Commission, the broadcaster said it does not expect any restatement to impact its previously reported revenues, cash flows or total stockholders' equity.
"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," it said.
Radio One said it was continuing its internal investigation into its stock option grants.
"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," it said.
The full impact of the stock options review will be detailed in the company's annual report for the fiscal year ended Dec. 31, 2006 when it is able to file the report, Radio One said.
Radio One is the seventh largest U.S. radio broadcasting company, based on net broadcast revenue.