WASHINGTON, Nov. 7, 2019 /PRNewswire/ -- Urban One, Inc.
(NASDAQ: UONEK and UONE) today reported its results for the quarter
ended September 30, 2019. Net
revenue was approximately $111.1
million, an increase of 0.3% from the same period in 2018.
Broadcast and digital operating income1 was
approximately $44.8 million, an
increase of 3.2% from the same period in 2018. The Company reported
operating income of approximately $32.5
million for the three months ended September 30, 2019, compared to approximately
$32.1 million for the same period in
2018. Net income was approximately $5.4
million or $0.12 per share
(basic) compared to net income of approximately $23.0 million or $0.51 per share (basic) for the same period in
2018. Adjusted EBITDA2 was approximately $40.0 million for the three months ended
September 30, 2019, compared to
approximately $37.8 million for the
same period in 2018.
Alfred C. Liggins, III, Urban
One's CEO and President stated, "During the third quarter we
completed the sale of WDMK to Beasley Broadcasting, as a result of
which our cash position improved and net leverage was reduced. On a
same station basis, our third quarter radio revenues were up 4.2%,
and I was pleased that we were able to grow the Radio Broadcasting
segment Adjusted EBITDA by 6.6%. Same station core radio revenues,
excluding political, are currently pacing down low single digits
for the fourth quarter. Cable Television advertising was robust in
the quarter, up 7.8%. While digital revenues decreased by
6.4%, we were able to post significant Adjusted EBITDA growth in
that segment as a result of improved cost control. Overall, we were
able to grow Adjusted EBITDA by 5.8% for the quarter, and I believe
we are well positioned to achieve our strategic goals for the year,
with Adjusted EBITDA in the range of $138-$140
million."
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited)
|
|
|
(in thousands, except
share data)
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
111,055
|
|
$
110,730
|
|
$
331,075
|
|
$
325,557
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
30,389
|
|
30,952
|
|
91,816
|
|
93,474
|
|
Selling, general and
administrative, excluding stock-based compensation
|
35,862
|
|
36,364
|
|
113,620
|
|
111,831
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
7,863
|
|
1,846
|
|
25,666
|
|
20,963
|
|
Stock-based
compensation
|
1,881
|
|
1,134
|
|
2,592
|
|
3,635
|
|
Depreciation and
amortization
|
2,593
|
|
8,333
|
|
14,451
|
|
24,869
|
|
Impairment of
long-lived assets
|
-
|
|
-
|
|
3,800
|
|
6,556
|
|
Total operating
expenses
|
78,588
|
|
78,629
|
|
251,945
|
|
261,328
|
|
Operating income
|
32,467
|
|
32,101
|
|
79,130
|
|
64,229
|
|
INTEREST
INCOME
|
45
|
|
33
|
|
131
|
|
194
|
|
INTEREST
EXPENSE
|
21,589
|
|
18,987
|
|
65,743
|
|
57,423
|
|
GAIN ON RETIREMENT OF
DEBT
|
-
|
|
(120)
|
|
-
|
|
(985)
|
|
OTHER INCOME,
net
|
(1,299)
|
|
(1,935)
|
|
(4,669)
|
|
(5,850)
|
|
Income before
provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries
|
12,222
|
|
15,202
|
|
18,187
|
|
13,835
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
6,535
|
|
(8,173)
|
|
11,901
|
|
(10,914)
|
|
CONSOLIDATED NET
INCOME
|
5,687
|
|
23,375
|
|
6,286
|
|
24,749
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
328
|
|
331
|
|
999
|
|
670
|
|
CONSOLIDATED NET
INCOME ATTRIBUTABLE TO COMMON
STOCKHOLDERS
|
$
5,359
|
|
$
23,044
|
|
$
5,287
|
|
$
24,079
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
|
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME ATTRIBUTABLE TO COMMON
STOCKHOLDERS
|
$
5,359
|
|
$
23,044
|
|
$
5,287
|
|
$
24,079
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic3
|
44,315,077
|
|
45,128,341
|
|
44,912,673
|
|
45,946,820
|
|
Weighted average
shares outstanding - diluted4
|
46,118,702
|
|
47,462,358
|
|
46,965,245
|
|
48,376,362
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
PER SHARE DATA -
basic and diluted:
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(in thousands, except
per share data)
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
Consolidated net income attributable to common stockholders
(basic)
|
$
0.12
|
|
$
0.51
|
|
$
0.12
|
|
$
0.52
|
|
|
|
|
|
|
|
|
Consolidated net income attributable to common stockholders
(diluted)
|
$
0.12
|
|
$
0.49
|
|
$
0.11
|
|
$
0.50
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
Broadcast and digital
operating income 1
|
$
44,804
|
|
$
43,414
|
|
$
125,639
|
|
$
120,252
|
Broadcast and digital
operating income margin (% of net revenue)
|
40.3%
|
|
39.2%
|
|
37.9%
|
|
36.9%
|
|
|
|
|
|
|
|
|
Broadcast and
digital operating income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income attributable to common
stockholders
|
$
5,359
|
|
$
23,044
|
|
$
5,287
|
|
$
24,079
|
Add back non-broadcast and digital operating income items included
in consolidated net
income:
|
|
|
|
|
|
|
|
Interest
income
|
(45)
|
|
(33)
|
|
(131)
|
|
(194)
|
Interest
expense
|
21,589
|
|
18,987
|
|
65,743
|
|
57,423
|
Provision for
(benefit from) income taxes
|
6,535
|
|
(8,173)
|
|
11,901
|
|
(10,914)
|
Corporate selling,
general and administrative expenses
|
7,863
|
|
1,846
|
|
25,666
|
|
20,963
|
Stock-based
compensation
|
1,881
|
|
1,134
|
|
2,592
|
|
3,635
|
Gain on retirement of
debt
|
-
|
|
(120)
|
|
-
|
|
(985)
|
Other income,
net
|
(1,299)
|
|
(1,935)
|
|
(4,669)
|
|
(5,850)
|
Depreciation and
amortization
|
2,593
|
|
8,333
|
|
14,451
|
|
24,869
|
Noncontrolling
interest in income of subsidiaries
|
328
|
|
331
|
|
999
|
|
670
|
Impairment of
long-lived assets
|
-
|
|
-
|
|
3,800
|
|
6,556
|
Broadcast and digital
operating income
|
$
44,804
|
|
$
43,414
|
|
$
125,639
|
|
$
120,252
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
40,021
|
|
$
37,811
|
|
$
110,113
|
|
$
105,287
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income attributable to common
stockholders:
|
$
5,359
|
|
$
23,044
|
|
$
5,287
|
|
$
24,079
|
Interest
income
|
(45)
|
|
(33)
|
|
(131)
|
|
(194)
|
Interest
expense
|
21,589
|
|
18,987
|
|
65,743
|
|
57,423
|
Provision for
(benefit from) income taxes
|
6,535
|
|
(8,173)
|
|
11,901
|
|
(10,914)
|
Depreciation
and amortization
|
2,593
|
|
8,333
|
|
14,451
|
|
24,869
|
EBITDA
|
$
36,031
|
|
$
42,158
|
|
$
97,251
|
|
$
95,263
|
Stock-based
compensation
|
1,881
|
|
1,134
|
|
2,592
|
|
3,635
|
Gain on
retirement of debt
|
-
|
|
(120)
|
|
-
|
|
(985)
|
Other income,
net
|
(1,299)
|
|
(1,935)
|
|
(4,669)
|
|
(5,850)
|
Noncontrolling
interest in income of subsidiaries
|
328
|
|
331
|
|
999
|
|
670
|
Employment
Agreement Award, incentive plan award expenses and other
compensation
|
860
|
|
(6,355)
|
|
3,576
|
|
(2,481)
|
Contingent
consideration from acquisition
|
53
|
|
265
|
|
219
|
|
1,715
|
Severance-related costs
|
358
|
|
622
|
|
1,178
|
|
1,621
|
Cost method
investment income from MGM National Harbor
|
1,809
|
|
1,711
|
|
5,167
|
|
5,143
|
Impairment of
long-lived assets
|
-
|
|
-
|
|
3,800
|
|
6,556
|
Adjusted
EBITDA
|
$
40,021
|
|
$
37,811
|
|
$
110,113
|
|
$
105,287
|
|
September 30,
2019
|
|
December 31,
2018
|
(unaudited)
|
|
|
|
|
(in
thousands)
|
SELECTED BALANCE
SHEET DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
$
31,903
|
|
$
15,890
|
|
Intangible assets,
net
|
889,724
|
|
916,824
|
|
Total
assets
|
1,261,501
|
|
1,237,409
|
|
Total debt (including
current portion, net of original issue discount and issuance
costs)
|
879,170
|
|
912,463
|
|
Total
liabilities
|
1,062,573
|
|
1,048,477
|
|
Total stockholders'
equity
|
189,681
|
|
178,700
|
|
Redeemable
noncontrolling interest
|
9,247
|
|
10,232
|
|
|
|
|
|
|
|
September 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)
|
$
315,739
|
|
6.12%
|
|
7.375% senior secured
notes due April 2022, net of original issue discount and
issuance
costs of approximately $2.9 million (fixed rate)
|
347,351
|
|
7.375%
|
|
2018 Credit Facility,
net of original issue discount and issuance costs of
approximately
$4.2 million (fixed rate)
|
166,755
|
|
12.875%
|
|
MGM National Harbor
Loan, net of original issue discount and issuance costs of
approximately $2.4 million (fixed rate)
|
49,325
|
|
11.00%
|
|
Asset-backed credit
facility (subject to variable rates) (a)
|
-
|
|
0.00%
|
|
|
|
|
|
|
(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
September 30,
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
$
Change
|
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
50,813
|
|
$
|
51,293
|
|
$
|
(480)
|
|
|
-0.9%
|
|
Political
Advertising
|
|
|
300
|
|
|
917
|
|
|
(617)
|
|
|
-67.3%
|
|
Digital
Advertising
|
|
|
8,171
|
|
|
8,734
|
|
|
(563)
|
|
|
-6.4%
|
|
Cable Television
Advertising
|
|
|
20,649
|
|
|
19,157
|
|
|
1,492
|
|
|
7.8%
|
|
Cable Television
Affiliate Fees
|
|
|
25,330
|
|
|
26,244
|
|
|
(914)
|
|
|
-3.5%
|
|
Event Revenues &
Other
|
|
|
5,792
|
|
|
4,385
|
|
|
1,407
|
|
|
32.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
111,055
|
|
$
|
110,730
|
|
$
|
325
|
|
|
0.3%
|
|
Net revenue increased to approximately $111.1 million for the quarter ended September 30, 2019, from approximately
$110.7 million for the same period in
2018. Net revenues from our radio broadcasting segment increased
1.1% compared to the same period in 2018. We experienced net
revenue declines most significantly in our Detroit and Indianapolis markets, with our Atlanta, Baltimore, Charlotte, Raleigh, St.
Louis, and Washington DC
markets experiencing the most significant growth for the quarter.
As previously announced, we sold our Detroit WDMK-FM station as of
August 31, 2019 and we sold our
Detroit WPZR-FM station as of August 8,
2018. We recognized approximately $46.0 million of revenue from our cable
television segment during the three months ended September 30, 2019, compared to approximately
$45.4 million for the same period in
2018, with an increase primarily in advertising sales, which was
partially offset by a decline in affiliate sales. Net revenue from
our Reach Media segment increased marginally for the quarter ended
September 30, 2019, compared to the
same period in 2018. 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 decreased 6.6% for
the three months ended September 30,
2019, compared to the same period in 2018, primarily due to
decreases in direct revenues.
Operating expenses, excluding depreciation and amortization,
stock-based compensation and impairment of long-lived assets,
increased to approximately $74.1
million for the quarter ended September 30, 2019, up 7.2% from the
approximately $69.2 million incurred
for the comparable quarter in 2018. The overall operating expense
increase was driven primarily by higher corporate selling, general
and administrative expenses, which was partially offset by lower
programming and technical expenses as well as lower selling,
general and administrative expenses. The increase in
corporate expenses was primarily due to a change in methodology
used in calculating the fair value of the Company's Employment
Agreement Award liability. The revised methodology resulted in a
one-time reduction of approximately $6.6
million during the quarter ended September 30, 2018 to reflect this change in
estimate.
Depreciation and amortization expense decreased to approximately
$2.6 million for the quarter ended
September 30, 2019, compared to
approximately $8.3 million for the
quarter ended September 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 $21.6 million for the quarter ended September 30, 2019, compared to approximately
$19.0 million for the same period in
2018. During the quarter ended September 30,
2019, the Company recorded interest expense of approximately
$1.3 million on its operating leases
as a result of adopting ASC 842 on January
1, 2019. The Company made cash interest payments of
approximately $11.7 million on its
outstanding debt for the quarter September
30, 2019, compared to cash interest payments of
approximately $17.5 million on its
outstanding debt for the quarter ended September 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
September 30, 2019, the Company did
not have any borrowings outstanding on its ABL Facility.
The gain on retirement of debt of $120,000 for the quarter ended September 30, 2018, was due to the redemption of
approximately $5.0 million of our
2020 Notes at a discount.
The increase in stock-based compensation for the three months
ended September 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.
For the three months ended September 30,
2019, we recorded a provision for income taxes of
approximately $6.5 million on pre-tax
income from continuing operations of approximately $12.2 million, which results in a tax rate of
53.5%. This tax rate is based on an estimated annual
effective tax rate of 35.5%, and discrete tax provision adjustments
of approximately $1.9 million related
to provision to return adjustments and legislative changes.
For the three months ended September 30,
2018, we recorded a benefit from income taxes of
approximately $8.2 million on pre-tax
income from continuing operations of approximately $15.2 million, which resulted in an effective tax
rate of (53.8)%. This tax rate is based on an estimated annual
effective tax rate of (66.1)% and discrete tax provision
adjustments of approximately $2.3
million related to state rate and legislative changes. The
Company received a net tax refund of $16,000 and paid $48,000 in taxes for the quarters ended
September 30, 2019 and 2018,
respectively.
Other income, net, was approximately $1.3
million and $1.9 million for
the quarters ended September 30, 2019
and 2018, respectively. For the three months ended September 30, 2019 and 2018, the Company
recognized approximately $1.8 million
and $1.7 million, respectively, of
cost method investment income from its MGM investment.
The decrease in noncontrolling interests in income of
subsidiaries was due primarily to lower net income recognized by
Reach Media during the three months ended September 30, 2019, compared to the same period
in 2018.
Other pertinent financial information includes capital
expenditures of approximately $1.8
million and $1.6 million for
the quarters ended September 30, 2019
and 2018, respectively.
During the three months ended September
30, 2019, the Company repurchased 6,345 shares of Class A
common stock in the amount of $14,000
and repurchased 448,742 shares of Class D common stock in the
amount of $975,000. During the three
months ended September 30, 2018, the
Company repurchased 3,928 shares of Class A common stock in the
amount of $9,000 and repurchased
702,282 shares of Class D common stock in the amount of
approximately $1.5 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 September 30, 2019, the Company executed a Stock
Vest Tax Repurchase of 13,264 shares of Class D Common Stock in the
amount of $25,000. During the three
months ended September 30, 2018, the
Company executed a Stock Vest Tax Repurchase of 20,787 shares of
Class D Common Stock in the amount of $44,000.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three and nine months ended
September 30, 2019 and 2018 are
included.
|
|
|
|
|
Three Months Ended
September 30, 2019
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
111,055
|
$
|
46,467
|
$
|
10,917
|
$
|
8,170
|
$
|
45,981
|
$
|
(480)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
30,389
|
|
9,707
|
|
4,070
|
|
2,899
|
|
14,153
|
|
(440)
|
|
Selling, general and
administrative
|
|
35,862
|
|
18,960
|
|
4,411
|
|
4,549
|
|
8,048
|
|
(106)
|
|
Corporate selling,
general and administrative
|
|
7,863
|
|
-
|
|
443
|
|
1
|
|
1,476
|
|
5,943
|
|
Stock-based
compensation
|
|
1,881
|
|
262
|
|
12
|
|
11
|
|
-
|
|
1,596
|
|
Depreciation and
amortization
|
|
2,593
|
|
791
|
|
60
|
|
474
|
|
953
|
|
315
|
|
Total operating
expenses
|
|
78,588
|
|
29,720
|
|
8,996
|
|
7,934
|
|
24,630
|
|
7,308
|
|
Operating income (loss)
|
|
32,467
|
|
16,747
|
|
1,921
|
|
236
|
|
21,351
|
|
(7,788)
|
|
INTEREST
INCOME
|
|
45
|
|
-
|
|
-
|
|
-
|
|
-
|
|
45
|
|
INTEREST
EXPENSE
|
|
21,589
|
|
1,184
|
|
75
|
|
69
|
|
2,163
|
|
18,098
|
|
OTHER (INCOME)
EXPENSE, net
|
|
(1,299)
|
|
515
|
|
-
|
|
-
|
|
-
|
|
(1,814)
|
|
Income (loss) before
provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries
|
|
12,222
|
|
15,048
|
|
1,846
|
|
167
|
|
19,188
|
|
(24,027)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
6,535
|
|
3,869
|
|
485
|
|
(13)
|
|
4,892
|
|
(2,698)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
5,687
|
|
11,179
|
|
1,361
|
|
180
|
|
14,296
|
|
(21,329)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
328
|
|
-
|
|
-
|
|
-
|
|
-
|
|
328
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
5,359
|
$
|
11,179
|
$
|
1,361
|
$
|
180
|
$
|
14,296
|
$
|
(21,657)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
40,021
|
$
|
17,963
|
$
|
1,993
|
$
|
780
|
$
|
22,345
|
$
|
(3,060)
|
|
|
|
|
|
Three Months Ended
September 30, 2018
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
110,730
|
$
|
45,958
|
$
|
10,822
|
$
|
8,749
|
$
|
45,401
|
$
|
(200)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
30,952
|
|
10,327
|
|
4,266
|
|
3,423
|
|
13,056
|
|
(120)
|
|
Selling, general and
administrative
|
|
36,364
|
|
18,880
|
|
3,607
|
|
5,928
|
|
8,028
|
|
(79)
|
|
Corporate selling,
general and administrative
|
|
1,846
|
|
-
|
|
855
|
|
-
|
|
1,704
|
|
(713)
|
|
Stock-based
compensation
|
|
1,134
|
|
166
|
|
12
|
|
12
|
|
7
|
|
937
|
|
Depreciation and
amortization
|
|
8,333
|
|
872
|
|
63
|
|
482
|
|
6,577
|
|
339
|
|
Total operating
expenses
|
|
78,629
|
|
30,245
|
|
8,803
|
|
9,845
|
|
29,372
|
|
364
|
|
Operating income (loss)
|
|
32,101
|
|
15,713
|
|
2,019
|
|
(1,096)
|
|
16,029
|
|
(564)
|
|
INTEREST
INCOME
|
|
33
|
|
-
|
|
-
|
|
-
|
|
-
|
|
33
|
|
INTEREST
EXPENSE
|
|
18,987
|
|
337
|
|
-
|
|
-
|
|
1,919
|
|
16,731
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
(120)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(120)
|
|
OTHER INCOME,
net
|
|
(1,935)
|
|
(204)
|
|
-
|
|
-
|
|
(2)
|
|
(1,729)
|
|
Income (loss) before
(benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries
|
|
15,202
|
|
15,580
|
|
2,019
|
|
(1,096)
|
|
14,112
|
|
(15,413)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(8,173)
|
|
3,586
|
|
458
|
|
117
|
|
3,534
|
|
(15,868)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
23,375
|
|
11,994
|
|
1,561
|
|
(1,213)
|
|
10,578
|
|
455
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
331
|
|
-
|
|
-
|
|
-
|
|
-
|
|
331
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
23,044
|
$
|
11,994
|
$
|
1,561
|
$
|
(1,213)
|
$
|
10,578
|
$
|
124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
37,811
|
$
|
16,854
|
$
|
2,107
|
$
|
(110)
|
$
|
22,935
|
$
|
(3,975)
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
331,075
|
$
|
132,528
|
$
|
36,660
|
$
|
23,280
|
$
|
140,234
|
$
|
(1,627)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
91,816
|
|
29,527
|
|
12,150
|
|
8,438
|
|
43,058
|
|
(1,357)
|
|
Selling, general and
administrative
|
|
113,620
|
|
56,603
|
|
16,712
|
|
13,620
|
|
26,856
|
|
(171)
|
|
Corporate selling,
general and administrative
|
|
25,666
|
|
-
|
|
1,834
|
|
2
|
|
4,617
|
|
19,213
|
|
Stock-based
compensation
|
|
2,592
|
|
450
|
|
31
|
|
39
|
|
9
|
|
2,063
|
|
Depreciation and
amortization
|
|
14,451
|
|
2,510
|
|
178
|
|
1,395
|
|
9,430
|
|
938
|
|
Impairment of
long-lived assets
|
|
3,800
|
|
3,800
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
251,945
|
|
92,890
|
|
30,905
|
|
23,494
|
|
83,970
|
|
20,686
|
|
Operating income (loss)
|
|
79,130
|
|
39,638
|
|
5,755
|
|
(214)
|
|
56,264
|
|
(22,313)
|
|
INTEREST
INCOME
|
|
131
|
|
-
|
|
-
|
|
-
|
|
-
|
|
131
|
|
INTEREST
EXPENSE
|
|
65,743
|
|
3,574
|
|
229
|
|
211
|
|
6,500
|
|
55,229
|
|
OTHER (INCOME)
EXPENSE, net
|
|
(4,669)
|
|
517
|
|
-
|
|
-
|
|
-
|
|
(5,186)
|
|
Income (loss) before
provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries
|
|
18,187
|
|
35,547
|
|
5,526
|
|
(425)
|
|
49,764
|
|
(72,225)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
11,901
|
|
9,121
|
|
1,343
|
|
(10)
|
|
12,559
|
|
(11,112)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
6,286
|
|
26,426
|
|
4,183
|
|
(415)
|
|
37,205
|
|
(61,113)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
999
|
|
-
|
|
-
|
|
-
|
|
-
|
|
999
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
5,287
|
$
|
26,426
|
$
|
4,183
|
$
|
(415)
|
$
|
37,205
|
$
|
(62,112)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
110,113
|
$
|
46,863
|
$
|
5,982
|
$
|
1,670
|
$
|
65,869
|
$
|
(10,271)
|
|
|
|
|
|
Nine Months Ended
September 30, 2018
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
325,557
|
$
|
131,924
|
$
|
33,721
|
$
|
23,454
|
$
|
138,414
|
$
|
(1,956)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
93,474
|
|
29,839
|
|
12,801
|
|
10,256
|
|
40,962
|
|
(384)
|
|
Selling, general and
administrative
|
|
111,831
|
|
55,272
|
|
14,462
|
|
18,485
|
|
25,201
|
|
(1,589)
|
|
Corporate selling,
general and administrative
|
|
20,963
|
|
-
|
|
2,396
|
|
5
|
|
5,900
|
|
12,662
|
|
Stock-based
compensation
|
|
3,635
|
|
477
|
|
41
|
|
84
|
|
9
|
|
3,024
|
|
Depreciation and
amortization
|
|
24,869
|
|
2,590
|
|
189
|
|
1,435
|
|
19,690
|
|
965
|
|
Impairment of
long-lived assets
|
|
6,556
|
|
6,556
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
261,328
|
|
94,734
|
|
29,889
|
|
30,265
|
|
91,762
|
|
14,678
|
|
Operating income (loss)
|
|
64,229
|
|
37,190
|
|
3,832
|
|
(6,811)
|
|
46,652
|
|
(16,634)
|
|
INTEREST
INCOME
|
|
194
|
|
-
|
|
-
|
|
-
|
|
-
|
|
194
|
|
INTEREST
EXPENSE
|
|
57,423
|
|
1,026
|
|
-
|
|
-
|
|
5,756
|
|
50,641
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
(985)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(985)
|
|
OTHER INCOME,
net
|
|
(5,850)
|
|
(642)
|
|
-
|
|
-
|
|
(2)
|
|
(5,206)
|
|
Income (loss) before
(benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries
|
|
13,835
|
|
36,806
|
|
3,832
|
|
(6,811)
|
|
40,898
|
|
(60,890)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(10,914)
|
|
8,749
|
|
940
|
|
(630)
|
|
10,141
|
|
(30,114)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
24,749
|
|
28,057
|
|
2,892
|
|
(6,181)
|
|
30,757
|
|
(30,776)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
670
|
|
-
|
|
-
|
|
-
|
|
-
|
|
670
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
24,079
|
$
|
28,057
|
$
|
2,892
|
$
|
(6,181)
|
$
|
30,757
|
$
|
(31,446)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
105,287
|
$
|
47,279
|
$
|
4,075
|
$
|
(3,242)
|
$
|
67,857
|
$
|
(10,682)
|
Urban One, Inc. will hold a conference call to discuss its
results for the third fiscal quarter of 2019. The conference call
is scheduled for Thursday, November 07,
2019 at 10:00 a.m. EST. To
participate on this call, U.S. callers may dial toll-free
1-800-230-1096; international callers may dial direct (+1)
612-288-0337.
A replay of the conference call will be available
from 12:00 p.m. EST November 07,
2019 until 11:59 p.m. EST November 14, 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 472686.
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 58 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 September 30,
2019 and 2018, Urban One had 44,315,077 and 45,128,341
shares of common stock outstanding on a weighted average basis
(basic), respectively. For the nine months ended September 30, 2019 and 2018, Urban One had
44,912,673 and 45,946,820 shares of common stock outstanding on a
weighted average basis (basic), respectively.
4
For the three months ended September 30,
2019 and 2018, Urban One had 46,118,702 and 47,462,358
shares of common stock outstanding on a weighted average basis
(fully diluted for outstanding stock awards), respectively. For the
nine months ended September 30, 2019
and 2018, Urban One had 46,965,245 and 48,376,362 shares of common
stock outstanding on a weighted average basis (fully diluted
for outstanding stock awards), respectively.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/urban-one-inc-reports-third-quarter-results-300953438.html
SOURCE Urban One, Inc.