WASHINGTON, March 20, 2020 /PRNewswire/ -- Urban One,
Inc. (NASDAQ: UONEK and UONE) today reported its results for the
quarter ended December 31, 2019. Net
revenue was approximately $105.9
million, a decrease of 6.8% from the same period in 2018.
Broadcast and digital operating income1 was
approximately $34.3 million, a
decrease of approximately $10.3
million from the same period in 2018. The Company reported
operating income of approximately $12.1
million for the three months ended December 31, 2019, compared to approximately
$9.4 million for the same period in
2018. Net loss was approximately $7.9
million or $0.18 per share
(basic) compared to net income of approximately $116.9 million or $2.62 per share (basic) for the same period in
2018. Adjusted EBITDA2 was approximately $27.5 million for the three months ended
December 31, 2019, compared to
approximately $35.3 million for the
same period in 2018.
Alfred C. Liggins, III, Urban
One's CEO and President stated, "Our Adjusted EBITDA for the year
of approximately $133.5 million was
adversely impacted by the re-classification of operating lease
expenses out of interest expense as previously reported through Q3,
absent which accounting reclassification we would have been above
the mid-point of our guidance. Our same station radio revenue
excluding political advertising was -2.9%, which was in line with
our previously reported low-single digit decline in core pacings.
With tough political comps (-83.5%) this made for a difficult
quarter, but in line with expectations. The first quarter of 2020
started brightly, with both January and February radio division
revenues ahead of prior year, and strong political revenues. The
Covid-19 outbreak has reversed that growth, with cancellations from
clients whose businesses revolve around events, travel, leisure and
entertainment. On a same station basis our radio division is
currently pacing up mid-single digits including political, and down
low single digits excluding political revenue. As a result of the
pandemic, we have postponed our annual Tom
Joyner's Fantastic Voyage cruise, which will impact our Q2
revenue and EBITDA, and we are monitoring all of our larger public
events with a view towards mitigating risk and keeping our
employees, clients and listeners safe."
RESULTS OF
OPERATIONS
|
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|
|
|
|
|
|
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|
|
|
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|
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Three Months Ended
December 31,
|
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Year Ended December
31,
|
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2019
|
|
2018
|
|
2019
|
|
2018
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited)
|
|
|
(in thousands, except
share data)
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
105,854
|
|
$
113,541
|
|
$
436,929
|
|
$
439,098
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
34,947
|
|
31,842
|
|
128,726
|
|
125,316
|
|
Selling, general and
administrative, excluding stock-based compensation
|
36,617
|
|
37,136
|
|
151,791
|
|
148,967
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
10,702
|
|
11,056
|
|
36,947
|
|
32,019
|
|
Stock-based
compensation
|
2,192
|
|
1,076
|
|
4,784
|
|
4,711
|
|
Depreciation and
amortization
|
2,534
|
|
8,320
|
|
16,985
|
|
33,189
|
|
Impairment of
long-lived assets
|
6,800
|
|
14,700
|
|
10,600
|
|
21,256
|
|
Total operating
expenses
|
93,792
|
|
104,130
|
|
349,833
|
|
365,458
|
|
Operating income
|
12,062
|
|
9,411
|
|
87,096
|
|
73,640
|
|
INTEREST
INCOME
|
19
|
|
46
|
|
150
|
|
240
|
|
INTEREST
EXPENSE
|
19,753
|
|
19,244
|
|
81,400
|
|
76,667
|
|
LOSS ON RETIREMENT OF
DEBT
|
-
|
|
2,794
|
|
-
|
|
1,809
|
|
OTHER INCOME,
net
|
(2,406)
|
|
(2,152)
|
|
(7,075)
|
|
(8,002)
|
|
(Loss) income before
provision for (benefit from) income taxes
and noncontrolling interest in income of
subsidiaries
|
(5,266)
|
|
(10,429)
|
|
12,921
|
|
3,406
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
2,522
|
|
(127,844)
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|
10,864
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|
(138,758)
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CONSOLIDATED NET
(LOSS) INCOME
|
(7,788)
|
|
117,415
|
|
2,057
|
|
142,164
|
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NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
133
|
|
493
|
|
1,132
|
|
1,163
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CONSOLIDATED NET
(LOSS) INCOME ATTRIBUTABLE TO
COMMON STOCKHOLDERS
|
$
(7,921)
|
|
$
116,922
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|
$
925
|
|
$
141,001
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|
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AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
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|
|
|
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CONSOLIDATED NET
(LOSS) INCOME ATTRIBUTABLE TO
COMMON STOCKHOLDERS
|
$
(7,921)
|
|
$
116,922
|
|
$
925
|
|
$
141,001
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic3
|
44,172,147
|
|
44,663,033
|
|
44,699,586
|
|
45,647,696
|
|
Weighted average
shares outstanding - diluted4
|
44,172,147
|
|
46,874,741
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|
47,921,671
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|
48,000,957
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Three Months Ended
December 31,
|
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Year Ended December
31,
|
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2019
|
|
2018
|
|
2019
|
|
2018
|
PER SHARE DATA -
basic and diluted:
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(in thousands, except
per share data)
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(in thousands, except
per share data)
|
|
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Consolidated net (loss) income attributable to common stockholders
(basic)
|
$
(0.18)
|
|
$
2.62
|
|
$
0.02
|
|
$
3.09
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common stockholders
(diluted)
|
$
(0.18)
|
|
$
2.49
|
|
$
0.02
|
|
$
2.94
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
Broadcast and digital
operating income 1
|
$
34,290
|
|
$
44,563
|
|
$
156,412
|
|
$
164,815
|
Broadcast and digital
operating income margin (% of net revenue)
|
32.4%
|
|
39.2%
|
|
35.8%
|
|
37.5%
|
|
|
|
|
|
|
|
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Broadcast and
digital operating income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common
stockholders
|
$
(7,921)
|
|
$
116,922
|
|
$
925
|
|
$
141,001
|
Add back non-broadcast and digital operating income items included
in consolidated net
(loss) income:
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|
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|
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|
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Interest
income
|
(19)
|
|
(46)
|
|
(150)
|
|
(240)
|
Interest
expense
|
19,753
|
|
19,244
|
|
81,400
|
|
76,667
|
Provision for
(benefit from) income taxes
|
2,522
|
|
(127,844)
|
|
10,864
|
|
(138,758)
|
Corporate selling,
general and administrative expenses
|
10,702
|
|
11,056
|
|
36,947
|
|
32,019
|
Stock-based
compensation
|
2,192
|
|
1,076
|
|
4,784
|
|
4,711
|
Loss on retirement of
debt
|
-
|
|
2,794
|
|
-
|
|
1,809
|
Other income,
net
|
(2,406)
|
|
(2,152)
|
|
(7,075)
|
|
(8,002)
|
Depreciation and
amortization
|
2,534
|
|
8,320
|
|
16,985
|
|
33,189
|
Noncontrolling
interest in income of subsidiaries
|
133
|
|
493
|
|
1,132
|
|
1,163
|
Impairment of
long-lived assets
|
6,800
|
|
14,700
|
|
10,600
|
|
21,256
|
Broadcast and digital
operating income
|
$
34,290
|
|
$
44,563
|
|
$
156,412
|
|
$
164,815
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
27,526
|
|
$
35,335
|
|
$
133,543
|
|
$
140,622
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common
stockholders:
|
$
(7,921)
|
|
$
116,922
|
|
$
925
|
|
$
141,001
|
Interest
income
|
(19)
|
|
(46)
|
|
(150)
|
|
(240)
|
Interest
expense
|
19,753
|
|
19,244
|
|
81,400
|
|
76,667
|
Provision for
(benefit from) income taxes
|
2,522
|
|
(127,844)
|
|
10,864
|
|
(138,758)
|
Depreciation and
amortization
|
2,534
|
|
8,320
|
|
16,985
|
|
33,189
|
EBITDA
|
$
16,869
|
|
$
16,596
|
|
$
110,024
|
|
$
111,859
|
Stock-based
compensation
|
2,192
|
|
1,076
|
|
4,784
|
|
4,711
|
Loss on retirement of
debt
|
-
|
|
2,794
|
|
-
|
|
1,809
|
Other income,
net
|
(2,406)
|
|
(2,152)
|
|
(7,075)
|
|
(8,002)
|
Noncontrolling
interest in income of subsidiaries
|
133
|
|
493
|
|
1,132
|
|
1,163
|
Employment Agreement
Award, incentive plan award expenses and other
compensation
|
1,373
|
|
(1,173)
|
|
4,948
|
|
(3,654)
|
Contingent
consideration from acquisition
|
77
|
|
684
|
|
297
|
|
2,399
|
Severance-related
costs
|
802
|
|
411
|
|
1,980
|
|
2,032
|
Cost method
investment income from MGM National Harbor
|
1,686
|
|
1,906
|
|
6,853
|
|
7,049
|
Impairment of
long-lived assets
|
6,800
|
|
14,700
|
|
10,600
|
|
21,256
|
Adjusted
EBITDA
|
$
27,526
|
|
$
35,335
|
|
$
133,543
|
|
$
140,622
|
|
December 31,
2019
|
|
December 31,
2018
|
(unaudited)
|
|
|
|
|
(in
thousands)
|
SELECTED BALANCE
SHEET DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
$
33,546
|
|
$
15,890
|
|
Intangible assets,
net
|
881,708
|
|
916,824
|
|
Total
assets
|
1,251,406
|
|
1,237,409
|
|
Total debt (including
current portion, net of original issue discount and issuance
costs)
|
876,253
|
|
912,463
|
|
Total
liabilities
|
1,057,767
|
|
1,052,036
|
|
Total stockholders'
equity
|
183,075
|
|
175,141
|
|
Redeemable
noncontrolling interest
|
10,564
|
|
10,232
|
|
|
|
|
|
|
|
December 31,
2019
|
|
Applicable Interest
Rate
|
|
(in
thousands)
|
|
|
SELECTED LEVERAGE
DATA:
|
|
|
2017 Credit Facility,
net of original issue discount and issuance costs of
approximately
$5.4 million (subject to variable rates) (a)
|
$
315,277
|
|
5.71%
|
|
7.375% senior secured
notes due April 2022, net of original issue discount and
issuance
costs of approximately $2.4 million (fixed rate)
|
347,585
|
|
7.375%
|
|
2018 Credit Facility,
net of original issue discount and issuance costs of
approximately
$3.7 million (fixed rate)
|
163,404
|
|
12.875%
|
|
MGM National Harbor
Loan, net of original issue discount and issuance costs of
approximately $2.1 million (fixed rate)
|
49,987
|
|
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, 10-Q/A, 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
December 31,
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
$
Change
|
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
48,359
|
|
$
|
53,258
|
|
$
|
(4,899)
|
|
|
-9.2%
|
|
Political
Advertising
|
|
|
705
|
|
|
4,268
|
|
|
(3,563)
|
|
|
-83.5%
|
|
Digital
Advertising
|
|
|
8,642
|
|
|
8,071
|
|
|
571
|
|
|
7.1%
|
|
Cable Television
Advertising
|
|
|
19,118
|
|
|
20,218
|
|
|
(1,100)
|
|
|
-5.4%
|
|
Cable Television
Affiliate Fees
|
|
|
25,667
|
|
|
25,764
|
|
|
(97)
|
|
|
-0.4%
|
|
Event Revenues &
Other
|
|
|
3,363
|
|
|
1,962
|
|
|
1,401
|
|
|
71.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
105,854
|
|
$
|
113,541
|
|
$
|
(7,687)
|
|
|
-6.8%
|
|
Net revenue decreased to approximately $105.9 million for the quarter ended December 31, 2019, from approximately
$113.5 million for the same period in
2018. Net revenues from our radio broadcasting segment decreased
11.6% compared to the same period in 2018. We experienced net
revenue declines most significantly in our Baltimore, Cincinnati, Cleveland, Columbus, Detroit, Indianapolis, Philadelphia, Raleigh and St.
Louis markets, with our Dallas market experiencing growth for the
quarter. The declines in Detroit
were driven by the previously announced sales of our Detroit
WDMK-FM station as of August 31, 2019
and our Detroit WPZR-FM station as of August
8, 2018. Same station net revenue, excluding political, from
our radio broadcasting segment decreased 2.9% compared to the same
period in 2018. We recognized approximately $44.8 million of revenue from our cable
television segment during the three months ended December 31, 2019, compared to approximately
$45.9 million for the same period in
2018, with the decrease primarily in advertising sales revenue. Net
revenue from our Reach Media segment decreased approximately
$1.2 million for the quarter ended
December 31, 2019, compared to the
same period in 2018. Finally, net revenues for our digital segment
increased $519,000 for the three
months ended December 31, 2019,
compared to the same period in 2018, primarily due to an increase
in direct revenues.
Operating expenses, excluding depreciation and amortization,
stock-based compensation and impairment of long-lived assets,
increased to approximately $82.3
million for the quarter ended December 31, 2019, up 2.8% from the approximately
$80.0 million incurred for the
comparable quarter in 2018. The overall operating expense increase
was driven primarily by higher programming and technical expenses,
which was partially offset by lower selling, general and
administrative expenses and lower corporate selling, general and
administrative expenses. The increase in programming and technical
expenses was primarily driven by higher program content
amortization expense at our cable television segment. The decrease
in selling, general and administrative expenses is primarily from
our radio broadcasting segment as a result of lower variable sales
based compensation expenses and representation fees.
Depreciation and amortization expense decreased to approximately
$2.5 million for the quarter ended
December 31, 2019, compared to
approximately $8.3 million for the
same quarter in 2018. The decrease in expense is due to the
mix of assets approaching or near the end of their useful lives,
most notably certain of the Company's cable television affiliate
agreements.
Interest expense increased to approximately $19.8 million for the quarter ended December 31, 2019, compared to approximately
$19.2 million for the same period in
2018. The Company made cash interest payments of approximately
$23.7 million on its outstanding debt
for the quarter December 31, 2019,
compared to cash interest payments of approximately $27.1 million on its outstanding debt for the
quarter ended December 31, 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
December 31, 2019, the Company did
not have any borrowings outstanding on its asset-backed credit
facility.
During the quarter ended December 31,
2018, the Company recorded a loss on retirement of debt of
approximately $2.8 million. This
amount included a write-off of previously capitalized debt
financing costs and original issue discount associated with the
Company's 9.25% Senior Subordinated Notes due 2020 (the "2020
Notes") in the amount of $649,000 and
also included approximately $2.1
million associated with the premium paid to the
bondholders.
The impairment of long-lived assets for the three months ended
December 31, 2019, was related to a
non-cash impairment charge of approximately $5.8 million to reduce the carrying value of our
digital segment goodwill as well as a non-cash impairment charge of
approximately $1.0 million associated
with our Indianapolis market radio
broadcasting license. By comparison, the impairment of long-lived
assets for the three months ended December
31, 2018 in the amount of approximately $14.7 million, was related to a non-cash
impairment charge recorded to reduce the carrying value of our
Atlanta market goodwill.
The increase in stock-based compensation for the three months
ended December 31, 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 December 31,
2019, we recorded a provision for income taxes of
approximately $2.5 million on a
pre-tax loss from continuing operations of approximately
$5.3 million, which results in a tax
rate of (47.9)%. For the three months ended December 31, 2018, we recorded a benefit from
income taxes of approximately $127.8
million on a pre-tax loss from operations of approximately
$10.4 million, that results in a tax
rate of (1,225.9)%. The tax benefit is primarily attributable to
deferred tax benefits from federal and state net operating losses
of approximately $128.5 million that
will be recognized in a future period, and the Company also
recorded current state tax expense of approximately $671,000. The Company received a net tax
refund of $321,000 and $131,000 for the quarters ended December 31, 2019 and 2018, respectively.
Other income, net, was approximately $2.4
million and $2.2 million for
the quarters ended December 31, 2019
and 2018, respectively. For the three months ended December 31, 2019 and 2018, the Company
recognized approximately $1.7 million
and $1.9 million, respectively, of
cost method investment income from its investment in MGM National
Harbor.
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 December 31, 2019, compared to the same period in
2018.
Other pertinent financial information includes capital
expenditures of approximately $1.2
million and $709,000 for the
quarters ended December 31, 2019 and
2018, respectively.
During the three months ended December
31, 2019, the Company did not repurchase any Class A or
Class D common stock. During the three months ended December 31, 2018, the Company did not repurchase
any Class A common stock but repurchased 914,086 shares of Class D
common stock in the amount of approximately $2.0 million.
The Company, in connection with its prior 2009 stock option and
restricted stock plan and its current 2019 Equity and Performance
Incentive Plan (the "2019 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 December 31,
2019, the Company executed a Stock Vest Tax Repurchase of
86,512 shares of Class D Common Stock in the amount of $192,000. During the three months ended
December 31, 2018, the Company
executed a Stock Vest Tax Repurchase of 13,162 shares of Class D
Common Stock in the amount of $27,000.
Other Matters:
The Company noted that the coronavirus pandemic was having an
impact on certain of its revenue and alternative revenue
sources. Most notably, the Company announced that a number of
advertisers across significant advertising categories were reducing
advertising spend due to the outbreak. Further, the Company
announced that the outbreak has caused the postponement of its 2020
Tom Joyner Foundation Fantastic Voyage cruise and
was impairing ticket sales of other tent pole special events.
During the fourth quarter of 2019, the Company reclassified the
interest expense component of operating leases accounted for under
ASC 842 from interest expense into operating expenses. The
amount reclassified for the fourth quarter was approximately
$1.6 million and the full year
reclassification was approximately $5.7
million.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three months and years ended
December 31, 2019 and 2018 are
included.
|
|
|
|
|
Three Months Ended
December 31, 2019
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
105,854
|
$
|
44,950
|
$
|
8,031
|
$
|
8,642
|
$
|
44,793
|
$
|
(562)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
34,947
|
|
9,966
|
|
4,652
|
|
4,006
|
|
16,705
|
|
(382)
|
|
Selling, general and
administrative
|
|
36,617
|
|
20,486
|
|
1,454
|
|
5,447
|
|
9,398
|
|
(168)
|
|
Corporate selling,
general and administrative
|
|
10,702
|
|
-
|
|
1,077
|
|
-
|
|
1,808
|
|
7,817
|
|
Stock-based
compensation
|
|
2,192
|
|
284
|
|
12
|
|
12
|
|
-
|
|
1,884
|
|
Depreciation and
amortization
|
|
2,534
|
|
738
|
|
57
|
|
482
|
|
946
|
|
311
|
|
Impairment of
long-lived assets
|
|
6,800
|
|
1,000
|
|
-
|
|
5,800
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
93,792
|
|
32,474
|
|
7,252
|
|
15,747
|
|
28,857
|
|
9,462
|
|
Operating income (loss)
|
|
12,062
|
|
12,476
|
|
779
|
|
(7,105)
|
|
15,936
|
|
(10,024)
|
|
INTEREST
INCOME
|
|
19
|
|
-
|
|
-
|
|
-
|
|
-
|
|
19
|
|
INTEREST
EXPENSE
|
|
19,753
|
|
338
|
|
-
|
|
53
|
|
1,919
|
|
17,443
|
|
OTHER INCOME,
net
|
|
(2,406)
|
|
(360)
|
|
-
|
|
-
|
|
(348)
|
|
(1,698)
|
|
(Loss) income before
provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries
|
|
(5,266)
|
|
12,498
|
|
779
|
|
(7,158)
|
|
14,365
|
|
(25,750)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
2,522
|
|
6,115
|
|
294
|
|
(2)
|
|
3,656
|
|
(7,541)
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(7,788)
|
|
6,383
|
|
485
|
|
(7,156)
|
|
10,709
|
|
(18,209)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
133
|
|
-
|
|
-
|
|
-
|
|
-
|
|
133
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(7,921)
|
$
|
6,383
|
$
|
485
|
$
|
(7,156)
|
$
|
10,709
|
$
|
(18,342)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
27,526
|
$
|
14,651
|
$
|
1,200
|
$
|
(532)
|
$
|
16,882
|
$
|
(4,675)
|
|
|
|
|
|
Three Months Ended
December 31, 2018
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
113,541
|
$
|
50,841
|
$
|
9,264
|
$
|
8,123
|
$
|
45,883
|
$
|
(570)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
31,842
|
|
10,327
|
|
4,493
|
|
3,033
|
|
14,092
|
|
(103)
|
|
Selling, general and
administrative
|
|
37,136
|
|
21,376
|
|
743
|
|
5,723
|
|
9,762
|
|
(468)
|
|
Corporate selling,
general and administrative
|
|
11,056
|
|
-
|
|
1,117
|
|
-
|
|
3,177
|
|
6,762
|
|
Stock-based
compensation
|
|
1,076
|
|
136
|
|
11
|
|
31
|
|
1
|
|
897
|
|
Depreciation and
amortization
|
|
8,320
|
|
894
|
|
61
|
|
472
|
|
6,569
|
|
324
|
|
Impairment of
long-lived assets
|
|
14,700
|
|
14,700
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
104,130
|
|
47,433
|
|
6,425
|
|
9,259
|
|
33,601
|
|
7,412
|
|
Operating income (loss)
|
|
9,411
|
|
3,408
|
|
2,839
|
|
(1,136)
|
|
12,282
|
|
(7,982)
|
|
INTEREST
INCOME
|
|
46
|
|
-
|
|
-
|
|
-
|
|
-
|
|
46
|
|
INTEREST
EXPENSE
|
|
19,244
|
|
338
|
|
-
|
|
-
|
|
1,919
|
|
16,987
|
|
LOSS ON RETIREMENT OF
DEBT
|
|
2,794
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,794
|
|
OTHER INCOME,
net
|
|
(2,152)
|
|
(233)
|
|
-
|
|
-
|
|
-
|
|
(1,919)
|
|
(Loss) income before
(benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries
|
|
(10,429)
|
|
3,303
|
|
2,839
|
|
(1,136)
|
|
10,363
|
|
(25,798)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(127,844)
|
|
4,811
|
|
681
|
|
643
|
|
2,144
|
|
(136,123)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
117,415
|
|
(1,508)
|
|
2,158
|
|
(1,779)
|
|
8,219
|
|
110,325
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
493
|
|
-
|
|
-
|
|
-
|
|
-
|
|
493
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
116,922
|
$
|
(1,508)
|
$
|
2,158
|
$
|
(1,779)
|
$
|
8,219
|
$
|
109,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
35,335
|
$
|
19,398
|
$
|
2,911
|
$
|
142
|
$
|
19,116
|
$
|
(6,232)
|
|
|
|
|
|
Year Ended December
31, 2019
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
436,929
|
$
|
177,478
|
$
|
44,691
|
$
|
31,922
|
$
|
185,027
|
$
|
(2,189)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
128,726
|
|
41,096
|
|
16,802
|
|
12,444
|
|
60,121
|
|
(1,737)
|
|
Selling, general and
administrative
|
|
151,791
|
|
78,047
|
|
18,166
|
|
19,278
|
|
36,639
|
|
(339)
|
|
Corporate selling,
general and administrative
|
|
36,947
|
|
-
|
|
3,139
|
|
2
|
|
6,426
|
|
27,380
|
|
Stock-based
compensation
|
|
4,784
|
|
735
|
|
43
|
|
51
|
|
9
|
|
3,946
|
|
Depreciation and
amortization
|
|
16,985
|
|
3,248
|
|
235
|
|
1,877
|
|
10,376
|
|
1,249
|
|
Impairment of
long-lived assets
|
|
10,600
|
|
4,800
|
|
-
|
|
5,800
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
349,833
|
|
127,926
|
|
38,385
|
|
39,452
|
|
113,571
|
|
30,499
|
|
Operating income (loss)
|
|
87,096
|
|
49,552
|
|
6,306
|
|
(7,530)
|
|
71,456
|
|
(32,688)
|
|
INTEREST
INCOME
|
|
150
|
|
-
|
|
-
|
|
-
|
|
-
|
|
150
|
|
INTEREST
EXPENSE
|
|
81,400
|
|
1,350
|
|
-
|
|
53
|
|
7,675
|
|
72,322
|
|
OTHER (INCOME)
EXPENSE, net
|
|
(7,075)
|
|
157
|
|
-
|
|
-
|
|
(348)
|
|
(6,884)
|
|
Income (loss) before
provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries
|
|
12,921
|
|
48,045
|
|
6,306
|
|
(7,583)
|
|
64,129
|
|
(97,976)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
10,864
|
|
15,236
|
|
1,637
|
|
(12)
|
|
16,216
|
|
(22,213)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
2,057
|
|
32,809
|
|
4,669
|
|
(7,571)
|
|
47,913
|
|
(75,763)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
1,132
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,132
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
925
|
$
|
32,809
|
$
|
4,669
|
$
|
(7,571)
|
$
|
47,913
|
$
|
(76,895)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
133,543
|
$
|
58,953
|
$
|
6,954
|
$
|
928
|
$
|
82,007
|
$
|
(15,299)
|
|
|
|
|
|
Year Ended December
31, 2018
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
439,098
|
$
|
182,765
|
$
|
42,984
|
$
|
31,577
|
$
|
184,298
|
$
|
(2,526)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
125,316
|
|
40,165
|
|
17,294
|
|
13,289
|
|
55,054
|
|
(486)
|
|
Selling, general and
administrative
|
|
148,967
|
|
76,648
|
|
15,205
|
|
24,208
|
|
34,963
|
|
(2,057)
|
|
Corporate selling,
general and administrative
|
|
32,019
|
|
-
|
|
3,512
|
|
6
|
|
9,076
|
|
19,425
|
|
Stock-based
compensation
|
|
4,711
|
|
614
|
|
53
|
|
114
|
|
11
|
|
3,919
|
|
Depreciation and
amortization
|
|
33,189
|
|
3,484
|
|
250
|
|
1,907
|
|
26,259
|
|
1,289
|
|
Impairment of
long-lived assets
|
|
21,256
|
|
21,256
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
365,458
|
|
142,167
|
|
36,314
|
|
39,524
|
|
125,363
|
|
22,090
|
|
Operating income (loss)
|
|
73,640
|
|
40,598
|
|
6,670
|
|
(7,947)
|
|
58,935
|
|
(24,616)
|
|
INTEREST
INCOME
|
|
240
|
|
-
|
|
-
|
|
-
|
|
-
|
|
240
|
|
INTEREST
EXPENSE
|
|
76,667
|
|
1,363
|
|
-
|
|
-
|
|
7,676
|
|
67,628
|
|
LOSS ON RETIREMENT OF
DEBT
|
|
1,809
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,809
|
|
OTHER INCOME,
net
|
|
(8,002)
|
|
(876)
|
|
-
|
|
-
|
|
(2)
|
|
(7,124)
|
|
Income (loss) before
(benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries
|
|
3,406
|
|
40,111
|
|
6,670
|
|
(7,947)
|
|
51,261
|
|
(86,689)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(138,758)
|
|
13,561
|
|
1,622
|
|
13
|
|
12,285
|
|
(166,239)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
142,164
|
|
26,550
|
|
5,048
|
|
(7,960)
|
|
38,976
|
|
79,550
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
1,163
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,163
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
141,001
|
$
|
26,550
|
$
|
5,048
|
$
|
(7,960)
|
$
|
38,976
|
$
|
78,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
140,622
|
$
|
66,679
|
$
|
6,986
|
$
|
(3,101)
|
$
|
86,975
|
$
|
(16,917)
|
Urban One, Inc. will hold a conference call to discuss its
results for the fourth fiscal quarter of 2019. The conference call
is scheduled for Friday, March 20,
2020 at 10:00 a.m. EDT. To
participate on this call, U.S. callers may dial toll-free
1-844-291-6362; international callers may dial direct (+1)
234-720-6995.
A replay of the conference call will be available from 1:00
p.m. EDT March 20, 2020 until 11:55 p.m.
EDT March 27, 2020. Callers may access the replay by calling
1-866-207-1041; international callers may dial direct (+1)
402-970-0847. The replay Access Code is 4249913.
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 of
January 2020, Urban One
currently owns and/or operates 61 broadcast stations (including all
HD stations, translator stations and the low power television
stations we operate) branded under the tradename "Radio One" in 14
urban markets in the United
States. Through its controlling interest in Reach Media,
Inc. (blackamericaweb.com), the Company also operates
syndicated programming including 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 December 31,
2019 and 2018, Urban One had 44,172,147 and 44,663,033
shares of common stock outstanding on a weighted average basis
(basic), respectively. For the years ended December 31, 2019 and 2018, Urban One had
44,699,586 and 45,647,696 shares of common stock outstanding on a
weighted average basis (basic), respectively.
4
For the three months ended December 31,
2019 and 2018, Urban One had 44,172,147 and 46,874,741
shares of common stock outstanding on a weighted average basis
(fully diluted for outstanding stock awards), respectively.
For the years ended December 31, 2019
and 2018, Urban One had 47,921,671 and 48,000,957 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.