Financial Press Releases

WESTWOOD ONE, INC.
2001 THIRD QUARTER OPERATING RESULTS

RECORD THIRD QUARTER RESULTS
NET INCOME UP 3%
FREE CASH FLOW UP 9%
FREE CASH FLOW PER SHARE UP 15%

New York, NY – November 1, 2001 -- Westwood One, Inc. (NYSE:WON) today reported third quarter 2001 operating results.

Net free cash flow (defined as net income plus depreciation and amortization less capital expenditures) for the third quarter of 2001 was a record $25,306,000 as compared with $23,199,000 in the third quarter of 2000, an increase of $2,107,000, or 9%.Net free cash flow per share for the third quarter of 2001 was $.23 per diluted share as compared with $.20 per diluted share in the third quarter of 2000, an increase of $.03, or 15%.

Net revenues for the third quarter of 2001 were $123,983,000 as compared with $139,014,000 for the third quarter of 2000, a decrease of approximately $15,031,000, or 11%. The decrease was principally due to the non-recurrence of approximately $10 million of revenues from the 2000 Summer Olympics, a slowdown in the advertising market generally and revenue losses attributable to the events of September 11. On a pro forma basis, excluding the revenue from the 2000 Summer Olympics from 2000’s reported revenue, net revenues decreased 5%.

EBITDA (defined as operating income plus depreciation and amortization) for the third quarter of 2001 was $40,126,000 as compared with $40,014,000 in the third quarter of 2000, an increase of approximately $112,000. The third quarter 2001 EBITDA was affected by the lost revenue from the Summer Olympics and the revenue losses, as well as an increase in news related costs, resulting from the events of September 11.

Joel Hollander, President and Chief Executive Officer of Westwood One stated: “Westwood achieved its record free cash flow results in spite of a slowing economy and the events of September 11.” Mr. Hollander added “The Company was able to achieve these results primarily by controlling costs and attracting new advertisers to the Company’s comprehensive traffic information and network platforms represented by its affiliate base of over 7500 stations.”

Depreciation and amortization expense for the third quarter of 2001 was $17,015,000 as compared with $15,834,000 in the third quarter of 2000, an increase of $1,181,000, or 7%. The increase was principally attributable to the amortization of goodwill resulting from the Company’s November 2000 acquisition of the operating assets of SmartRoute Systems.

Operating income for the third quarter of 2001 was $23,111,000 as compared with $24,180,000 in the third quarter of 2000, a decrease of approximately $1,069,000, or 4%.

Income tax expense for the third quarter of 2001 was $10,930,000 as compared with $11,988,000 for the third quarter of 2000, a decrease of $1,058,000, or 9%. The Company’s effective income tax rate for the third quarter of 2001 was 52% compared with the 55% in the third quarter of 2000. The decrease in the effective income tax rate is principally a result of lower state tax expense.

Net income for the third quarter of 2001 was $10,181,000 ($.10 per basic share and $.09 diluted share) as compared with $9,870,000 ($.09 per basic and diluted share) in the third quarter of 2000, an increase of $311,000, or 3%.

The weighted average shares outstanding for the third quarter of 2001 were 106,852,000 basic shares and 111,165,000 diluted shares, as compared with 110,057,000 basic shares and 114,929,000 diluted shares in the third quarter of 2000 a decrease of 3% for both basic and diluted shares. In the third quarter of 2001, the Company continued to repurchase its Common Stock, acquiring 2.4 million shares for approximately $62.8 million. In the first ten months of 2001, the Company repurchased approximately $118 million of its securities.

2001 Outlook

The Company believes that based on current business trends, 2001 EBITDA is expected to be comparable to full year 2000 EBITDA of $165 million and 2001 Free Cash Flow will be approximately $100 million as compared with the $95 million achieved in 2000. Free cash flow per share for full year 2001 is expected to be $.90 per diluted share as compared with the $.82 per diluted share in 2000.

Westwood One provides over 150 news, sports, music, talk, entertainment programs, features, live events and 24/7 Formats. Through its subsidiaries, Metro Networks/Shadow Broadcast Services, Westwood One provides local content to the radio and TV industries including news, sports, weather, traffic, video news services and other information. SmartRoute Systems manages update information centers for state and local departments of transportation, and markets traffic and travel content to wireless, Internet, in-vehicle navigation systems and voice portal customers. Westwood One serves more than 7,500 radio stations. Westwood One, Inc. is managed by Infinity Broadcasting Corporation, a wholly-owned subsidiary of Viacom, Inc.

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: changes in economic conditions in the U.S. and in other countries in which Westwood One, Inc. currently does business (both general and relative to the advertising and entertainment industries); fluctuations in interest rates: changes in industry conditions; changes in operating performance; shifts in population and other demographics; changes in the level of competition for advertising dollars; fluctuations in operating costs; technological changes and innovations; changes in labor conditions; changes in governmental regulations and policies and actions of regulatory bodies; changes in tax rates; changes in capital expenditure requirements and access to capital markets. Other key risks are described in the Company’s reports filed with the U.S. Securities and Exchange Commission. Except as otherwise state in this news announcement, Westwood One, Inc. does no undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

Click here for Westwood One's Consolidated Statements of Operations

FOR IMMEDIATE RELEASE CONTACT:
GARY J. YUSKO
(212) 641-2063


	**First Quarter 2001 Second Quarter 2001 Third Quarter 2001 *Fourth Quarter 2001***
: : :	WESTWOOD ONE, INC. 2001 THIRD QUARTER OPERATING RESULTS RECORD THIRD QUARTER RESULTS NET INCOME UP 3% FREE CASH FLOW UP 9% FREE CASH FLOW PER SHARE UP 15% New York, NY – November 1, 2001 -- Westwood One, Inc. (NYSE:WON) today reported third quarter 2001 operating results. Net free cash flow (defined as net income plus depreciation and amortization less capital expenditures) for the third quarter of 2001 was a record $25,306,000 as compared with $23,199,000 in the third quarter of 2000, an increase of $2,107,000, or 9%.Net free cash flow per share for the third quarter of 2001 was $.23 per diluted share as compared with $.20 per diluted share in the third quarter of 2000, an increase of $.03, or 15%. Net revenues for the third quarter of 2001 were $123,983,000 as compared with $139,014,000 for the third quarter of 2000, a decrease of approximately $15,031,000, or 11%. The decrease was principally due to the non-recurrence of approximately $10 million of revenues from the 2000 Summer Olympics, a slowdown in the advertising market generally and revenue losses attributable to the events of September 11. On a pro forma basis, excluding the revenue from the 2000 Summer Olympics from 2000’s reported revenue, net revenues decreased 5%. EBITDA (defined as operating income plus depreciation and amortization) for the third quarter of 2001 was $40,126,000 as compared with $40,014,000 in the third quarter of 2000, an increase of approximately $112,000. The third quarter 2001 EBITDA was affected by the lost revenue from the Summer Olympics and the revenue losses, as well as an increase in news related costs, resulting from the events of September 11. Joel Hollander, President and Chief Executive Officer of Westwood One stated: “Westwood achieved its record free cash flow results in spite of a slowing economy and the events of September 11.” Mr. Hollander added “The Company was able to achieve these results primarily by controlling costs and attracting new advertisers to the Company’s comprehensive traffic information and network platforms represented by its affiliate base of over 7500 stations.” Depreciation and amortization expense for the third quarter of 2001 was $17,015,000 as compared with $15,834,000 in the third quarter of 2000, an increase of $1,181,000, or 7%. The increase was principally attributable to the amortization of goodwill resulting from the Company’s November 2000 acquisition of the operating assets of SmartRoute Systems. Operating income for the third quarter of 2001 was $23,111,000 as compared with $24,180,000 in the third quarter of 2000, a decrease of approximately $1,069,000, or 4%. Income tax expense for the third quarter of 2001 was $10,930,000 as compared with $11,988,000 for the third quarter of 2000, a decrease of $1,058,000, or 9%. The Company’s effective income tax rate for the third quarter of 2001 was 52% compared with the 55% in the third quarter of 2000. The decrease in the effective income tax rate is principally a result of lower state tax expense. Net income for the third quarter of 2001 was $10,181,000 ($.10 per basic share and $.09 diluted share) as compared with $9,870,000 ($.09 per basic and diluted share) in the third quarter of 2000, an increase of $311,000, or 3%. The weighted average shares outstanding for the third quarter of 2001 were 106,852,000 basic shares and 111,165,000 diluted shares, as compared with 110,057,000 basic shares and 114,929,000 diluted shares in the third quarter of 2000 a decrease of 3% for both basic and diluted shares. In the third quarter of 2001, the Company continued to repurchase its Common Stock, acquiring 2.4 million shares for approximately $62.8 million. In the first ten months of 2001, the Company repurchased approximately $118 million of its securities. 2001 Outlook The Company believes that based on current business trends, 2001 EBITDA is expected to be comparable to full year 2000 EBITDA of $165 million and 2001 Free Cash Flow will be approximately $100 million as compared with the $95 million achieved in 2000. Free cash flow per share for full year 2001 is expected to be $.90 per diluted share as compared with the $.82 per diluted share in 2000. Westwood One provides over 150 news, sports, music, talk, entertainment programs, features, live events and 24/7 Formats. Through its subsidiaries, Metro Networks/Shadow Broadcast Services, Westwood One provides local content to the radio and TV industries including news, sports, weather, traffic, video news services and other information. SmartRoute Systems manages update information centers for state and local departments of transportation, and markets traffic and travel content to wireless, Internet, in-vehicle navigation systems and voice portal customers. Westwood One serves more than 7,500 radio stations. Westwood One, Inc. is managed by Infinity Broadcasting Corporation, a wholly-owned subsidiary of Viacom, Inc. 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: changes in economic conditions in the U.S. and in other countries in which Westwood One, Inc. currently does business (both general and relative to the advertising and entertainment industries); fluctuations in interest rates: changes in industry conditions; changes in operating performance; shifts in population and other demographics; changes in the level of competition for advertising dollars; fluctuations in operating costs; technological changes and innovations; changes in labor conditions; changes in governmental regulations and policies and actions of regulatory bodies; changes in tax rates; changes in capital expenditure requirements and access to capital markets. Other key risks are described in the Company’s reports filed with the U.S. Securities and Exchange Commission. Except as otherwise state in this news announcement, Westwood One, Inc. does no undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise. Click here for Westwood One's Consolidated Statements of Operations FOR IMMEDIATE RELEASE CONTACT: GARY J. YUSKO (212) 641-2063