WASHINGTON, Aug. 1, 2019 /PRNewswire/ -- Urban One, Inc.
(NASDAQ: UONEK and UONE) today reported its results for the quarter
ended June 30, 2019. Net
revenue was approximately $121.6
million, an increase of 5.5% from the same period in 2018.
Broadcast and digital operating income1 was
approximately $46.3 million, an
increase of 4.5% from the same period in 2018. The Company reported
operating income of approximately $30.5
million for the three months ended June 30, 2019, compared to approximately
$24.8 million for the same period in
2018. Net income was approximately $6.6
million or $0.15 per share
(basic) compared to net income of approximately $23.6 million or $0.51 per share (basic) for the same period in
2018. Adjusted EBITDA2 was approximately $41.1 million for the three months ended
June 30, 2019, compared to
approximately $39.0 million for the
same period in 2018.
Alfred C. Liggins, III, Urban
One's CEO and President stated, "We had a very strong quarter from
an advertising revenue standpoint: radio advertising was up 6.8%,
TV advertising was up 9.4%, and digital was up 16.8%. Our radio
division is also pacing up approximately 8% for the third quarter,
with robust demand for national business in our larger markets. We
had a tough comp on TV affiliate fees, due to a $2.0 million one-time MVPD settlement in Q2 of
2018. Our digital division continued their turn-around from 2018,
with positive Adjusted EBITDA for the quarter and year-to-date.
Reach Media benefited from another successful cruise event, with
the Tom Joyner Fantastic Voyage posting 12% year over year revenue
growth. On the Cable TV business, as anticipated, we invested some
additional programing and marketing expenses related to the DL
Hughley Show as we continue to create and promote engaging new
content. Overall, I am happy with our progress this quarter, and
believe we can carry this positive momentum into the second half of
the year."
RESULTS OF
OPERATIONS
|
|
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|
|
|
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|
|
|
|
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|
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Three Months Ended
June 30,
|
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Six Months Ended June
30,
|
|
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2019
|
|
2018
|
|
2019
|
|
2018
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited)
|
|
|
(in thousands, except
share data)
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(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
121,571
|
|
$
115,206
|
|
$
220,020
|
|
$
214,827
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
30,497
|
|
30,375
|
|
61,427
|
|
62,522
|
|
Selling, general and
administrative, excluding stock-based compensation
|
44,730
|
|
40,490
|
|
77,758
|
|
75,467
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
8,214
|
|
10,155
|
|
17,803
|
|
19,117
|
|
Stock-based
compensation
|
200
|
|
1,125
|
|
711
|
|
2,501
|
|
Depreciation and
amortization
|
3,584
|
|
8,248
|
|
11,858
|
|
16,536
|
|
Impairment of
long-lived assets
|
3,800
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|
-
|
|
3,800
|
|
6,556
|
|
Total operating
expenses
|
91,025
|
|
90,393
|
|
173,357
|
|
182,699
|
|
Operating income
|
30,546
|
|
24,813
|
|
46,663
|
|
32,128
|
|
INTEREST
INCOME
|
63
|
|
17
|
|
86
|
|
161
|
|
INTEREST
EXPENSE
|
22,003
|
|
19,155
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|
44,154
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|
38,436
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GAIN ON RETIREMENT OF
DEBT
|
-
|
|
(626)
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|
-
|
|
(865)
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OTHER INCOME,
net
|
(1,649)
|
|
(2,014)
|
|
(3,370)
|
|
(3,915)
|
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Income (loss) before provision for (benefit from) income taxes
and noncontrolling interest in income of
subsidiaries
|
10,255
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|
8,315
|
|
5,965
|
|
(1,367)
|
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PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
3,118
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(15,581)
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|
5,366
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(2,741)
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CONSOLIDATED NET
INCOME
|
7,137
|
|
23,896
|
|
599
|
|
1,374
|
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NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
546
|
|
306
|
|
671
|
|
339
|
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CONSOLIDATED NET
INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS
|
$
6,591
|
|
$
23,590
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$
(72)
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|
$
1,035
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AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
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CONSOLIDATED NET
INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS
|
$
6,591
|
|
$
23,590
|
|
$
(72)
|
|
$
1,035
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic3
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45,061,821
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|
46,033,402
|
|
45,175,521
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|
46,321,633
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Weighted average
shares outstanding - diluted4
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45,701,655
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48,438,693
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|
45,175,521
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48,777,798
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Three Months Ended
June 30,
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Six Months Ended June
30,
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2019
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2018
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|
2019
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2018
|
PER SHARE DATA -
basic and diluted:
|
(unaudited)
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|
(unaudited)
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|
(unaudited)
|
|
(unaudited)
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(in thousands, except
per share data)
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(in thousands, except
per share data)
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|
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Consolidated net income (loss)
attributable to common stockholders (basic)
|
$
0.15
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|
$
0.51
|
|
$
(0.00)
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|
$
0.02
|
|
|
|
|
|
|
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Consolidated net income (loss)
attributable to common stockholders (diluted)
|
$
0.14
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|
$
0.49
|
|
$
(0.00)
|
|
$
0.02
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
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|
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|
Broadcast and digital
operating income 1
|
$
46,344
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|
$
44,341
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|
$
80,835
|
|
$
76,838
|
Broadcast and digital
operating income margin (% of net revenue)
|
38.1%
|
|
38.5%
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|
36.7%
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|
35.8%
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|
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|
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|
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Broadcast and
digital operating income reconciliation:
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|
|
|
|
|
|
|
|
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Consolidated net income (loss)
attributable to common stockholders
|
$
6,591
|
|
$
23,590
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|
$
(72)
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|
$
1,035
|
Add back
non-broadcast and digital operating income items included in
consolidated net
income (loss):
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Interest
income
|
(63)
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|
(17)
|
|
(86)
|
|
(161)
|
Interest expense
|
22,003
|
|
19,155
|
|
44,154
|
|
38,436
|
Provision for (benefit
from) income taxes
|
3,118
|
|
(15,581)
|
|
5,366
|
|
(2,741)
|
Corporate selling,
general and administrative expenses
|
8,214
|
|
10,155
|
|
17,803
|
|
19,117
|
Stock-based
compensation
|
200
|
|
1,125
|
|
711
|
|
2,501
|
Gain on retirement of
debt
|
-
|
|
(626)
|
|
-
|
|
(865)
|
Other income,
net
|
(1,649)
|
|
(2,014)
|
|
(3,370)
|
|
(3,915)
|
Depreciation and
amortization
|
3,584
|
|
8,248
|
|
11,858
|
|
16,536
|
Noncontrolling
interest in income of subsidiaries
|
546
|
|
306
|
|
671
|
|
339
|
Impairment of
long-lived assets
|
3,800
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|
-
|
|
3,800
|
|
6,556
|
Broadcast and digital
operating income
|
$
46,344
|
|
$
44,341
|
|
$
80,835
|
|
$
76,838
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
41,055
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|
$
38,987
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|
$
70,092
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|
$
67,476
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|
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|
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Adjusted EBITDA
reconciliation:
|
|
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|
|
|
|
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Consolidated net income (loss)
attributable to common stockholders:
|
$
6,591
|
|
$
23,590
|
|
$
(72)
|
|
$
1,035
|
Interest
income
|
(63)
|
|
(17)
|
|
(86)
|
|
(161)
|
Interest
expense
|
22,003
|
|
19,155
|
|
44,154
|
|
38,436
|
Provision for (benefit
from) income taxes
|
3,118
|
|
(15,581)
|
|
5,366
|
|
(2,741)
|
Depreciation and
amortization
|
3,584
|
|
8,248
|
|
11,858
|
|
16,536
|
EBITDA
|
$
35,233
|
|
$
35,395
|
|
$
61,220
|
|
$
53,105
|
Stock-based
compensation
|
200
|
|
1,125
|
|
711
|
|
2,501
|
Gain on retirement of
debt
|
-
|
|
(626)
|
|
-
|
|
(865)
|
Other income,
net
|
(1,649)
|
|
(2,014)
|
|
(3,370)
|
|
(3,915)
|
Noncontrolling
interest in income of subsidiaries
|
546
|
|
306
|
|
671
|
|
339
|
Employment Agreement
Award, incentive plan award expenses and other
compensation
|
806
|
|
2,285
|
|
2,713
|
|
3,873
|
Contingent
consideration from acquisition
|
90
|
|
(79)
|
|
167
|
|
1,451
|
Severance-related
costs
|
401
|
|
801
|
|
822
|
|
999
|
Cost method investment
income from MGM National Harbor
|
1,628
|
|
1,794
|
|
3,358
|
|
3,432
|
Impairment of
long-lived assets
|
3,800
|
|
-
|
|
3,800
|
|
6,556
|
Adjusted
EBITDA
|
$
41,055
|
|
$
38,987
|
|
$
70,092
|
|
$
67,476
|
|
June 30,
2019
|
|
December 31,
2018
|
(unaudited)
|
|
|
|
|
(in
thousands)
|
SELECTED BALANCE
SHEET DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
$
15,331
|
|
$
15,890
|
|
Intangible assets,
net
|
891,080
|
|
916,824
|
|
Total
assets
|
1,269,308
|
|
1,237,409
|
|
Total debt (including
current portion, net of original issue discount and issuance
costs)
|
894,596
|
|
912,463
|
|
Total
liabilities
|
1,076,934
|
|
1,048,477
|
|
Total stockholders'
equity
|
181,206
|
|
178,700
|
|
Redeemable
noncontrolling interest
|
11,168
|
|
10,232
|
|
|
|
|
|
|
|
June 30,
2019
|
|
Applicable
Interest
Rate
|
|
(in
thousands)
|
|
|
SELECTED LEVERAGE
DATA:
|
|
|
2017 Credit Facility,
net of original issue discount and issuance costs of
approximately
$6.1 million (subject to variable rates) (a)
|
$
316,206
|
|
6.44%
|
|
7.375% senior secured
notes due April 2022, net of original issue discount and
issuance
costs of approximately $2.9 million (fixed rate)
|
347,121
|
|
7.375%
|
|
2018 Credit Facility,
net of original issue discount and issuance costs of
approximately
$4.2 million (fixed rate)
|
173,608
|
|
12.875%
|
|
MGM National Harbor
Loan, net of original issue discount and issuance costs of
approximately $2.4 million (fixed rate)
|
48,661
|
|
11.00%
|
|
Asset-backed credit
facility (subject to variable rates) (a)
|
9,000
|
|
6.00%
|
|
(a)
Subject to variable Libor or Prime plus a spread that is
incorporated into the applicable interest rate set forth
above.
|
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements represent management's current expectations and are
based upon information available to Urban One at the time of this
release. These forward-looking statements involve known and unknown
risks, uncertainties and other factors, some of which are beyond
Urban One's control, that may cause the actual results to differ
materially from any future results, performance or achievements
expressed or implied by such forward-looking statements.
Important factors that could cause actual results to differ
materially are described in Urban One's reports on Forms 10-K,
10-Q, 8-K and other filings with the Securities and Exchange
Commission (the "SEC"). Urban One does not undertake any duty to
update any forward-looking statements.
Net revenue consists of gross revenue, net of local and national
agency and outside sales representative commissions. Agency and
outside sales representative commissions are calculated based on a
stated percentage applied to gross billing.
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
$
Change
|
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
52,194
|
|
$
|
48,880
|
|
$
|
3,314
|
|
|
6.8%
|
Political
Advertising
|
|
|
317
|
|
|
1,182
|
|
|
(865)
|
|
|
-73.2%
|
Digital
Advertising
|
|
|
7,663
|
|
|
6,559
|
|
|
1,104
|
|
|
16.8%
|
Cable Television
Advertising
|
|
|
19,816
|
|
|
18,118
|
|
|
1,698
|
|
|
9.4%
|
Cable Television
Affiliate Fees
|
|
|
26,599
|
|
|
28,020
|
|
|
(1,421)
|
|
|
-5.1%
|
Event Revenues &
Other
|
|
|
14,982
|
|
|
12,447
|
|
|
2,535
|
|
|
20.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
121,571
|
|
$
|
115,206
|
|
$
|
6,365
|
|
|
5.5%
|
Net revenue increased to approximately $121.6 million for the quarter ended June 30, 2019, from approximately $115.2 million for the same period in 2018. Net
revenues from our radio broadcasting segment increased 6.2%
compared to the same period in 2018. We experienced net revenue
declines most significantly in our Charlotte, Cincinnati, Columbus, and Richmond markets, with our Atlanta, Cleveland, Houston, Raleigh and Washington DC markets experiencing growth for
the quarter. We recognized approximately $46.4 million of revenue from our cable
television segment during the three months ended June 30, 2019, compared to approximately
$46.8 million for the same period in
2018, with an increase primarily in advertising sales, which was
offset by a decline in affiliate sales and other revenue. Net
revenue from our Reach Media segment increased 14.6% for the
quarter ended June 30, 2019, compared
to the same period in 2018 due primarily to higher special event
revenue. The "Tom Joyner Fantastic Voyage" took place during the
second quarters of 2019 and 2018 and generated revenue of
approximately $10.4 million and
$9.3 million, respectively for Reach
Media. In addition, the Tom Joyner One More Time Experience, a
multi-city tour event for 2019 added revenue for the quarter.
Finally, net revenues for our digital segment increased 17.0% for
the three months ended June 30, 2019,
compared to the same period in 2018, primarily due to increases in
direct and indirect revenues.
Operating expenses, excluding depreciation and amortization,
stock-based compensation and impairment of long-lived assets,
increased to approximately $83.4
million for the quarter ended June
30, 2019, up 3.0% from the approximately $81.0 million incurred for the comparable quarter
in 2018. The overall operating expense increase was driven
primarily by higher selling, general and administrative expenses,
due to stronger performance of special events as well as increased
expenses for certain marketing campaigns.
Depreciation and amortization expense decreased to approximately
$3.6 million for the quarter ended
June 30, 2019, compared to
approximately $8.2 million for the
quarter ended June 30, 2018.
The decrease in expense is due to the mix of assets
approaching or near the end of their useful lives, most notably the
Company's affiliate agreements.
Interest expense increased to approximately $22.0 million for the quarter ended June 30, 2019, compared to approximately
$19.2 million for the same period in
2018. During the quarter ended June 30,
2019, the Company recorded interest expense of approximately
$1.4 million on its operating leases
as a result of adopting ASC 842 on January
1, 2019. The Company made cash interest payments of
approximately $24.6 million on its
outstanding debt for the quarter ended June
30, 2019, compared to cash interest payments of
approximately $19.2 million on its
outstanding debt for the quarter ended June
30, 2018. On December 20,
2018, the Company closed on a new $192.0 million unsecured credit facility (the
"2018 Credit Facility") and a new $50.0
million loan secured by its interest in the MGM National
Harbor Casino (the "MGM National Harbor Loan"). As of June 30, 2019, the Company had approximately
$9.0 million in borrowings
outstanding on its ABL Facility.
The gain on retirement of debt of $626,000 for the quarter ended June 30, 2018, was due to the redemption of
approximately $14 million of our 2020
Notes at a discount.
The decrease in stock-based compensation for the three months
ended June 30, 2019, compared to the
same period in 2018, is primarily due to grants and vesting of
stock awards for certain executive officers and other management
personnel.
The impairment of long-lived assets for the three months ended
June 30, 2019, was related to a
non-cash impairment charge of approximately $3.8 million associated with our Detroit market radio broadcasting license.
For the three months ended June 30,
2019, we recorded a provision for income taxes of
approximately $3.1 million on pre-tax
income from continuing operations of approximately $10.3 million, which results in a tax rate of
30.4%. This tax rate is based on an estimated annual effective tax
rate of 30.9%. For the three months ended June 30, 2018, we recorded a benefit from income
taxes of approximately $15.6 million
on pre-tax income from continuing operations of approximately
$8.3 million, which results in a tax
rate of (187.4)%. This tax rate is based on an estimated
annual effective tax rate of (95.0)% and a discrete tax provision
benefit adjustment of approximately $3.2
million related to state rate and legislative changes.
The Company paid $383,000 and
$493,000 in taxes for the quarters
ended June 30, 2019 and 2018,
respectively.
Other income, net, was approximately $1.6
million and $2.0 million for
the quarters ended June 30, 2019 and
2018, respectively. For the three months ended June 30, 2019 and 2018, the Company recognized
approximately $1.6 million and
$1.8 million, respectively, of cost
method investment income from its MGM investment.
The increase in noncontrolling interests in income of
subsidiaries was due primarily to higher net income recognized by
Reach Media during the three months ended June 30, 2019, compared to the same period in
2018.
Other pertinent financial information includes capital
expenditures of approximately $1.4
million and $1.2 million for
the quarters ended June 30, 2019 and
2018, respectively.
During the three months ended June 30,
2019, the Company repurchased 26,171 shares of Class A
common stock in the amount of $56,000
and repurchased 899,765 shares of Class D common stock in the
amount of approximately $1.8 million.
During the three months ended June 30,
2018, the Company repurchased 232 shares of Class A common
stock and repurchased 760,113 shares of Class D common stock in the
amount of approximately $1.6 million.
During the three months ended June 30,
2018, the Company repurchased share-based equity awards in
the amount of approximately $1.1
million.
The Company, in connection with its 2009 stock plan, is
authorized to purchase shares of Class D common stock to satisfy
employee tax obligations in connection with the vesting of share
grants under the plan. During the three months ended June 30, 2019, the Company executed a Stock Vest
Tax Repurchase of 6,368 shares of Class D Common Stock in the
amount of $13,000. During the three
months ended June 30, 2018, the
Company executed a Stock Vest Tax Repurchase of 10,646 shares of
Class D Common Stock in the amount of $22,000.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three and six months ended
June 30, 2019 and 2018 are
included.
|
|
Three Months Ended
June 30, 2019
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
Corporate/
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
121,571
|
$
|
49,312
|
|
18,770
|
|
7,673
|
|
46,430
|
|
(614)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
30,497
|
|
10,124
|
|
4,015
|
|
2,642
|
|
14,156
|
|
(440)
|
|
Selling, general and
administrative
|
|
44,730
|
|
20,548
|
|
10,762
|
|
4,440
|
|
8,994
|
|
(14)
|
|
Corporate selling,
general and administrative
|
|
8,214
|
|
-
|
|
656
|
|
1
|
|
1,733
|
|
5,824
|
|
Stock-based
compensation
|
|
200
|
|
93
|
|
6
|
|
11
|
|
3
|
|
87
|
|
Depreciation and
amortization
|
|
3,584
|
|
851
|
|
59
|
|
460
|
|
1,901
|
|
313
|
|
Impairment of
long-lived assets
|
|
3,800
|
|
3,800
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
91,025
|
|
35,416
|
|
15,498
|
|
7,554
|
|
26,787
|
|
5,770
|
|
Operating income (loss)
|
|
30,546
|
|
13,896
|
|
3,272
|
|
119
|
|
19,643
|
|
(6,384)
|
|
INTEREST
INCOME
|
|
63
|
|
-
|
|
-
|
|
-
|
|
-
|
|
63
|
|
INTEREST
EXPENSE
|
|
22,003
|
|
1,196
|
|
77
|
|
71
|
|
2,220
|
|
18,439
|
|
OTHER INCOME,
net
|
|
(1,649)
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
(1,648)
|
|
Income (loss) before provision for (benefit from) income taxes
and
noncontrolling
interest in income of subsidiaries
|
|
10,255
|
|
12,701
|
|
3,195
|
|
48
|
|
17,423
|
|
(23,112)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
3,118
|
|
3,260
|
|
745
|
|
-
|
|
4,369
|
|
(5,256)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
7,137
|
|
9,441
|
|
2,450
|
|
48
|
|
13,054
|
|
(17,856)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
546
|
|
-
|
|
-
|
|
-
|
|
-
|
|
546
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
6,591
|
$
|
9,441
|
$
|
2,450
|
$
|
48
|
$
|
13,054
|
$
|
(18,402)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
41,055
|
$
|
18,775
|
$
|
3,337
|
$
|
719
|
$
|
21,658
|
$
|
(3,434)
|
|
|
Three Months Ended
June 30, 2018
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
Corporate/
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
115,206
|
$
|
46,452
|
$
|
16,380
|
$
|
6,559
|
$
|
46,828
|
$
|
(1,013)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
30,375
|
|
9,868
|
|
4,249
|
|
3,354
|
|
13,094
|
|
(190)
|
|
Selling, general and
administrative
|
|
40,490
|
|
18,973
|
|
9,415
|
|
5,652
|
|
7,288
|
|
(838)
|
|
Corporate selling,
general and administrative
|
|
10,155
|
|
-
|
|
782
|
|
4
|
|
2,228
|
|
7,141
|
|
Stock-based
compensation
|
|
1,125
|
|
134
|
|
12
|
|
13
|
|
-
|
|
966
|
|
Depreciation and
amortization
|
|
8,248
|
|
848
|
|
63
|
|
477
|
|
6,556
|
|
304
|
|
Total operating
expenses
|
|
90,393
|
|
29,823
|
|
14,521
|
|
9,500
|
|
29,166
|
|
7,383
|
|
Operating income (loss)
|
|
24,813
|
|
16,629
|
|
1,859
|
|
(2,941)
|
|
17,662
|
|
(8,396)
|
|
INTEREST
INCOME
|
|
17
|
|
-
|
|
-
|
|
-
|
|
-
|
|
17
|
|
INTEREST
EXPENSE
|
|
19,155
|
|
351
|
|
-
|
|
-
|
|
1,919
|
|
16,885
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
(626)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(626)
|
|
OTHER INCOME,
net
|
|
(2,014)
|
|
(220)
|
|
-
|
|
-
|
|
-
|
|
(1,794)
|
|
Income (loss) before (benefit from) provision for income taxes
and
noncontrolling interest in income of subsidiaries
|
|
8,315
|
|
16,498
|
|
1,859
|
|
(2,941)
|
|
15,743
|
|
(22,844)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(15,581)
|
|
4,047
|
|
433
|
|
(239)
|
|
3,902
|
|
(23,724)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
23,896
|
|
12,451
|
|
1,426
|
|
(2,702)
|
|
11,841
|
|
880
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
306
|
|
-
|
|
-
|
|
-
|
|
-
|
|
306
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
23,590
|
$
|
12,451
|
$
|
1,426
|
$
|
(2,702)
|
$
|
11,841
|
$
|
574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
38,987
|
$
|
17,818
|
$
|
1,934
|
$
|
(2,435)
|
$
|
25,005
|
$
|
(3,335)
|
|
|
Six Months Ended June
30, 2019
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
Corporate/
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
220,020
|
$
|
86,061
|
|
25,743
|
|
15,110
|
|
94,253
|
|
(1,147)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
61,427
|
|
19,820
|
|
8,080
|
|
5,538
|
|
28,906
|
|
(917)
|
|
Selling, general and
administrative
|
|
77,758
|
|
37,644
|
|
12,301
|
|
9,071
|
|
18,807
|
|
(65)
|
|
Corporate selling,
general and administrative
|
|
17,803
|
|
-
|
|
1,390
|
|
1
|
|
3,142
|
|
13,270
|
|
Stock-based
compensation
|
|
711
|
|
188
|
|
20
|
|
28
|
|
8
|
|
467
|
|
Depreciation and
amortization
|
|
11,858
|
|
1,719
|
|
118
|
|
921
|
|
8,477
|
|
623
|
|
Impairment of
long-lived assets
|
|
3,800
|
|
3,800
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
173,357
|
|
63,171
|
|
21,909
|
|
15,559
|
|
59,340
|
|
13,378
|
|
Operating income (loss)
|
|
46,663
|
|
22,890
|
|
3,834
|
|
(449)
|
|
34,913
|
|
(14,525)
|
|
INTEREST
INCOME
|
|
86
|
|
-
|
|
-
|
|
-
|
|
-
|
|
86
|
|
INTEREST
EXPENSE
|
|
44,154
|
|
2,390
|
|
153
|
|
142
|
|
4,337
|
|
37,132
|
|
OTHER INCOME,
net
|
|
(3,370)
|
|
2
|
|
-
|
|
-
|
|
-
|
|
(3,372)
|
|
Income (loss) before provision for (benefit from) income taxes
and
noncontrolling interest in income of
subsidiaries
|
|
5,965
|
|
20,498
|
|
3,681
|
|
(591)
|
|
30,576
|
|
(48,199)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
5,366
|
|
5,253
|
|
858
|
|
2
|
|
7,667
|
|
(8,414)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
599
|
|
15,245
|
|
2,823
|
|
(593)
|
|
22,909
|
|
(39,785)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
671
|
|
-
|
|
-
|
|
-
|
|
-
|
|
671
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(72)
|
$
|
15,245
|
$
|
2,823
|
$
|
(593)
|
$
|
22,909
|
$
|
(40,456)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
70,092
|
$
|
28,899
|
$
|
3,990
|
$
|
892
|
$
|
43,524
|
$
|
(7,213)
|
|
|
Six Months Ended June
30, 2018
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
Corporate/
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
214,827
|
$
|
85,965
|
$
|
22,899
|
$
|
14,705
|
$
|
93,014
|
$
|
(1,756)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
62,522
|
|
19,511
|
|
8,535
|
|
6,833
|
|
27,906
|
|
(263)
|
|
Selling, general and
administrative
|
|
75,467
|
|
36,393
|
|
10,855
|
|
12,557
|
|
17,172
|
|
(1,510)
|
|
Corporate selling,
general and administrative
|
|
19,117
|
|
-
|
|
1,540
|
|
5
|
|
4,195
|
|
13,377
|
|
Stock-based
compensation
|
|
2,501
|
|
312
|
|
29
|
|
72
|
|
3
|
|
2,085
|
|
Depreciation and
amortization
|
|
16,536
|
|
1,718
|
|
126
|
|
953
|
|
13,113
|
|
626
|
|
Impairment of
long-lived assets
|
|
6,556
|
|
6,556
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
182,699
|
|
64,490
|
|
21,085
|
|
20,420
|
|
62,389
|
|
14,315
|
|
Operating income (loss)
|
|
32,128
|
|
21,475
|
|
1,814
|
|
(5,715)
|
|
30,625
|
|
(16,071)
|
|
INTEREST
INCOME
|
|
161
|
|
-
|
|
-
|
|
-
|
|
-
|
|
161
|
|
INTEREST
EXPENSE
|
|
38,436
|
|
688
|
|
-
|
|
-
|
|
3,838
|
|
33,910
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
(865)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(865)
|
|
OTHER INCOME,
net
|
|
(3,915)
|
|
(438)
|
|
-
|
|
-
|
|
-
|
|
(3,477)
|
|
(Loss) income before (benefit from) provision for income taxes
and
noncontrolling interest in income of subsidiaries
|
|
(1,367)
|
|
21,225
|
|
1,814
|
|
(5,715)
|
|
26,787
|
|
(45,478)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(2,741)
|
|
5,163
|
|
483
|
|
(747)
|
|
6,606
|
|
(14,246)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
1,374
|
|
16,062
|
|
1,331
|
|
(4,968)
|
|
20,181
|
|
(31,232)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
339
|
|
-
|
|
-
|
|
-
|
|
-
|
|
339
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
1,035
|
$
|
16,062
|
$
|
1,331
|
$
|
(4,968)
|
$
|
20,181
|
$
|
(31,571)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
67,476
|
$
|
30,424
|
$
|
1,969
|
$
|
(3,131)
|
$
|
44,925
|
$
|
(6,711)
|
Urban One, Inc. will hold a conference call to discuss its
results for the second fiscal quarter of 2019. The conference call
is scheduled for Thursday, August 01,
2019 at 10:00 a.m. EDT. To
participate on this call, U.S. callers may dial toll-free
1-800-230-1059; international callers may dial direct (+1)
612-234-9959.
A replay of the conference call will be available from
12:00 p.m. EDT August 01, 2019 until 11:59 a.m. EDT August 08,
2019. Callers may access the replay by calling
1-800-475-6701; international callers may dial direct (+1)
320-365-3844. The replay Access Code is 469279.
Access to live audio and a replay of the conference call will
also be available on Urban One's corporate website at
www.urban1.com. The replay will be made available on the website
for seven days after the call.
Urban One, Inc. (urban1.com), together with its
subsidiaries, is the largest diversified media company that
primarily targets Black Americans and urban consumers in
the United States. The Company
owns TV One, LLC (tvone.tv), a television network serving
more than 59 million households, offering a broad range of original
programming, classic series and movies designed to entertain,
inform and inspire a diverse audience of adult Black viewers. As
one of the nation's largest radio broadcasting companies, Urban
One currently owns and/or operates 60 broadcast stations
(including all HD stations, translator stations and the low power
television station we operate) branded under the tradename "Radio
One" in 15 urban markets in the United
States. Through its controlling interest in Reach Media,
Inc. (blackamericaweb.com), the Company also operates
syndicated programming including the Tom Joyner Morning
Show, the Rickey Smiley Morning
Show, the Russ Parr Morning
Show and the DL Hughley Show. In addition to its
radio and television broadcast assets, Urban One owns iOne
Digital (ionedigital.com), our wholly owned digital
platform serving the African-American community through social
content, news, information, and entertainment websites, including
its Cassius, Bossip, HipHopWired and MadameNoire digital platforms
and brands. We also have invested in a minority ownership interest
in MGM National Harbor, a gaming resort located in Prince George's County, Maryland. Through our
national multi-media operations, we provide advertisers with a
unique and powerful delivery mechanism to the African-American and
urban audiences.
Notes:
1
"Broadcast and digital operating income" consists of net (loss)
income before depreciation and amortization, corporate selling,
general and administrative expenses, stock-based compensation,
income taxes, noncontrolling interest in income (loss) of
subsidiaries, interest expense, impairment of long-lived assets,
other (income) expense, loss (gain) on retirement of debt, gain on
sale-leaseback and interest income. Broadcast and digital operating
income is not a measure of financial performance under generally
accepted accounting principles. Nevertheless, broadcast and digital
operating income is a significant measure used by our management to
evaluate the operating performance of our core operating segments
because broadcast and digital operating income provides helpful
information about our results of operations apart from expenses
associated with our fixed assets and long-lived intangible assets,
income taxes, investments, debt financings and retirements,
overhead, stock-based compensation, impairment charges, and asset
sales. Our measure of broadcast and digital operating income is
similar to industry use of station operating income; however, it
reflects our more diverse business and therefore is not completely
analogous to "station operating income" or other similarly titled
measures used by other companies. Broadcast and digital operating
income does not purport to represent operating income or cash flow
from operating activities, as those terms are defined under
generally accepted accounting principles, and should not be
considered as an alternative to those measurements as an indicator
of our performance. A reconciliation of net income (loss) to
broadcast and digital operating income has been provided in this
release.
2
"Adjusted EBITDA" consists of net loss plus (1) depreciation,
amortization, income taxes, interest expense, noncontrolling
interest in (loss) income of subsidiaries, impairment of long-lived
assets, stock-based compensation, (gain) loss on retirement of
debt, gain on sale-leaseback, Employment Agreement and incentive
plan award expenses and other compensation, contingent
consideration from acquisition, severance-related costs, cost
investment income, less (2) other income and interest income. Net
income before interest income, interest expense, income taxes,
depreciation and amortization is commonly referred to in our
business as "EBITDA." Adjusted EBITDA and EBITDA are not measures
of financial performance under generally accepted accounting
principles. However, we believe Adjusted EBITDA is often a useful
measure of a company's operating performance and is a significant
measure used by our management to evaluate the operating
performance of our business because Adjusted EBITDA excludes
charges for depreciation, amortization and interest expense that
have resulted from our acquisitions and debt financing, our taxes,
impairment charges, and gain on retirements of debt. Accordingly,
we believe that Adjusted EBITDA provides useful information about
the operating performance of our business, apart from the expenses
associated with our fixed assets and long-lived intangible assets
or capital structure. EBITDA is frequently used as one of the
measures for comparing businesses in the broadcasting industry,
although our measure of Adjusted EBITDA may not be comparable to
similarly titled measures of other companies, including, but not
limited to the fact that our definition includes the results of all
four segments (radio broadcasting, Reach Media, digital and cable
television). Adjusted EBITDA and EBITDA do not purport to
represent operating income or cash flow from operating activities,
as those terms are defined under generally accepted accounting
principles, and should not be considered as alternatives to those
measurements as an indicator of our performance. A reconciliation
of net income (loss) to EBITDA and Adjusted EBITDA has been
provided in this release.
3
For the three months ended June 30,
2019 and 2018, Urban One had 45,061,821 and 46,033,402
shares of common stock outstanding on a weighted average basis
(basic), respectively. For the six months ended June 30, 2019 and 2018, Urban One had 45,175,521
and 46,321,633 shares of common stock outstanding on a weighted
average basis (basic), respectively.
4
For the three months ended June 30,
2019 and 2018, Urban One had 45,701,655 and 48,438,693
shares of common stock outstanding on a weighted average basis
(fully diluted for outstanding stock awards), respectively.
For the six months ended June 30,
2019 and 2018, Urban One had 45,175,521 and 48,777,798
shares of common stock outstanding on a weighted average basis
(fully diluted for outstanding stock awards),
respectively.
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SOURCE Urban One, Inc.