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Urban One, Inc. Reports Second Quarter Results

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Urban One, Inc. Reports Second Quarter Results

PR Newswire

WASHINGTON, Aug. 8, 2018 /PRNewswire/ -- Urban One, Inc. (NASDAQ:UONEK) today reported its results for the quarter ended June 30, 2018.  Net revenue was approximately $115.2 million, a decrease of 2.1% from the same period in 2017. Broadcast and digital operating income1 was approximately $44.3 million, an increase of 6.1% from the same period in 2017. The Company reported operating income of approximately $24.8 million for the three months ended June 30, 2018, compared to approximately $12.1 million for the same period in 2017. Net income was approximately $23.6 million or $0.51 per share (basic) compared to net income of $802,000 or $0.02 per share (basic) for the same period in 2017. Adjusted EBITDA2 was approximately $39.0 million for the three months ended June 30, 2018, compared to $36.7 million for the same period in 2017, an increase of 6.4%.

(PRNewsfoto/Urban One, Inc.)

Alfred C. Liggins, III, Urban One's CEO and President stated, "Our Q2 radio performance was in line with expectation; after a tough April, the quarter improved sequentially, and we are currently pacing approximately flat for third quarter. The decline in our TV advertising revenues improved sequentially over first quarter, and our affiliate revenues benefitted from a one-time adjustment to an agreement with a major MVPD. We are launching a new network in January 2019 that will target the African-American female demographic and feature lifestyle and entertainment programming. We expect the new network to launch with at least 2 MPVD distribution partners. The addition of a second network will help us to continue to grow our TV business in the longer term, and has great potential synergy with our existing platform. Reach Media held its 19th successful Tom Joyner Foundation Fantastic Voyage cruise event, and was able to deliver a 14.7% increase in Adjusted EBITDA for the quarter. Our digital segment came in below expectation for Q2, but has had a very strong start to third quarter and we remain optimistic for the back half of the year. MGM National Harbor continues its impressive performance, with double digit growth in gaming revenues for Q2. Overall, I remain comfortable with the full year Adjusted EBITDA guidance of approximately $140 million that was provided during our Q1 earnings call."

RESULTS OF OPERATIONS



















Three Months Ended June 30,


Six Months Ended June 30, 



2018


2017


2018


2017

STATEMENT OF OPERATIONS

(unaudited)


(unaudited)



(in thousands, except share data)


(in thousands, except share data)











NET REVENUE

$                           115,206


$                         117,638


$                  214,827


$                        218,927


OPERATING EXPENSES









Programming and technical, excluding stock-based compensation

30,375


33,009


62,522


64,906


Selling, general and administrative, excluding stock-based compensation

40,490


42,847


75,467


77,302


Corporate selling, general and administrative, excluding stock-based
compensation

10,155


8,328


19,117


18,367


Stock-based compensation

1,125


158


2,501


291


Depreciation and amortization 

8,248


8,432


16,536


16,744


Impairment of long-lived assets

-


12,756


6,556


12,756


Total operating expenses 

90,393


105,530


182,699


190,366


             Operating income

24,813


12,108


32,128


28,561


INTEREST INCOME

17


45


161


148


INTEREST EXPENSE

19,155


19,863


38,436


40,209


GAIN ON SALE-LEASEBACK

-


(14,411)


-


(14,411)


(GAIN) LOSS ON RETIREMENT OF DEBT

(626)


7,083


(865)


7,083


OTHER INCOME, net

(2,014)


(1,574)


(3,915)


(2,895)


Income (loss) before (benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries 

8,315


1,192


(1,367)


(1,277)


(BENEFIT FROM) PROVISION FOR INCOME TAXES

(15,581)


182


(2,741)


70


CONSOLIDATED NET INCOME (LOSS)

23,896


1,010


1,374


(1,347)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

306


208


339


164


CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
STOCKHOLDERS

$                             23,590


$                                802


$                      1,035


$                          (1,511)











AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS









CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
STOCKHOLDERS

$                             23,590


$                                802


$                      1,035


$                          (1,511)











Weighted average shares outstanding - basic3

46,033,402


47,816,723


46,321,633


47,890,618


Weighted average shares outstanding - diluted4

48,438,693


48,237,113


48,777,798


47,890,618

 


Three Months Ended June 30, 


Six Months Ended June 30, 


2018


2017


2018


2017

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 (loss) attributable to common stockholders (basic)

$                          0.51


$                        0.02


$                      0.02


$                        (0.03)









    Consolidated net income (loss) attributable to common stockholders (diluted)

$                          0.49


$                        0.02


$                      0.02


$                        (0.03)









SELECTED OTHER DATA








Broadcast and digital operating income 1

$                      44,341


$                    41,782


$                  76,838


$                     76,719

Broadcast and digital operating income margin (% of net revenue)

38.5%


35.5%


35.8%


35.0%









Broadcast and digital operating income reconciliation:
















    Consolidated net income (loss) attributable to common stockholders

$                      23,590


$                         802


$                    1,035


$                      (1,511)

    Add back non-broadcast and digital operating income items included in consolidated net
income (loss):








  Interest income

(17)


(45)


(161)


(148)

  Interest expense

19,155


19,863


38,436


40,209

  (Benefit from) provision for income taxes

(15,581)


182


(2,741)


70

  Corporate selling, general and administrative expenses

10,155


8,328


19,117


18,367

  Stock-based compensation

1,125


158


2,501


291

  Gain on sale-leaseback

-


(14,411)


-


(14,411)

  (Gain) loss on retirement of debt

(626)


7,083


(865)


7,083

  Other income, net

(2,014)


(1,574)


(3,915)


(2,895)

  Depreciation and amortization

8,248


8,432


16,536


16,744

  Noncontrolling interest in income of subsidiaries

306


208


339


164

  Impairment of long-lived assets

-


12,756


6,556


12,756

  Broadcast and digital operating income

$                      44,341


$                    41,782


$                  76,838


$                     76,719









Adjusted EBITDA2

$                      38,987


$                    36,653


$                  67,476


$                     64,398









Adjusted EBITDA reconciliation:
















    Consolidated net income (loss) attributable to common stockholders:

$                      23,590


$                         802


$                    1,035


$                      (1,511)

  Interest income

(17)


(45)


(161)


(148)

  Interest expense

19,155


19,863


38,436


40,209

  (Benefit from) provision for income taxes

(15,581)


182


(2,741)


70

  Depreciation and amortization

8,248


8,432


16,536


16,744

  EBITDA

$                      35,395


$                    29,234


$                  53,105


$                     55,364

  Stock-based compensation

1,125


158


2,501


291

  Gain on sale-leaseback

-


(14,411)


-


(14,411)

  (Gain) loss on retirement of debt

(626)


7,083


(865)


7,083

  Other income, net

(2,014)


(1,574)


(3,915)


(2,895)

  Noncontrolling interest in income of subsidiaries

306


208


339


164

  Employment Agreement Award, incentive plan award expenses and other compensation

2,285


1,443


3,873


2,484

  Contingent consideration from acquisition

(79)


-


1,451


-

  Severance-related costs

801


250


999


603

  Cost method investment income from MGM National Harbor

1,794


1,506


3,432


2,959

  Impairment of long-lived assets

-


12,756


6,556


12,756

  Adjusted EBITDA

$                      38,987


$                    36,653


$                  67,476


$                     64,398

 


June 30, 2018


December 31, 2017

(unaudited) 





(in thousands)

SELECTED BALANCE SHEET DATA:



Cash and cash equivalents and restricted cash

$                    36,919


$                   37,811


Intangible assets, net

938,762


971,484


Total assets

1,290,416


1,316,755


Total debt (including current portion, net of original issue discount and issuance costs)

945,370


970,666


Total liabilities

1,239,467


1,263,320


Total stockholders' equity

40,009


42,655


Redeemable noncontrolling interest

10,940


10,780








June 30, 2018


Applicable Interest Rate


(in thousands)



SELECTED LEVERAGE DATA:



2017 Credit Facility, net of original issue discount and issuance costs of approximately
$7.5 million (subject to variable rates) (a)

$                  338,158


5.88%


9.25% senior subordinated notes due February 2020, net of original issue discount and
issuance costs of $906,000 (fixed rate)

249,094


9.25%


7.375% senior secured notes due April 2022, net of original issue discount and issuance
costs of approximately $3.8 million (fixed rate)

346,246


7.375%


Comcast Note due April 2019 (fixed rate)

11,872


10.47%




(a)       Subject to variable Libor 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,










2018


2017


$ Change



% Change



  (Unaudited)









(in thousands)







Net Revenue:














Radio Advertising


$

48,880


$

52,017


$

(3,137)



-6.0%


Political Advertising



1,182



731



451



61.7%


Digital Advertising



6,559



6,740



(181)



-2.7%


Cable Television Advertising



18,118



18,988



(870)



-4.6%


Cable Television Affiliate Fees



28,020



26,140



1,880



7.2%


Event Revenues & Other



12,447



13,022



(575)



-4.4%
















Net Revenue (as reported)


$

115,206


$

117,638


$

(2,432)



-2.1%


Net revenue decreased to approximately $115.2 million for the quarter ended June 30, 2018, from approximately $117.6 million for the same period in 2017. Net revenues from our radio broadcasting segment decreased 3.5% compared to the same period in 2017. We experienced net revenue declines most significantly in our Atlanta, Philadelphia, Raleigh, and St. Louis markets, with our Cleveland, Dallas and Washington DC markets experiencing growth for the quarter. We recognized approximately $46.8 million of revenue from our cable television segment during the three months ended June 30, 2018, compared to approximately $45.4 million for the same period in 2017, with an increase primarily in affiliate sales. The increase is primarily driven by an adjustment of previously estimated affiliate fees in the amount of approximately $1.7 million, as final reporting became available. Net revenue from our Reach Media segment decreased approximately $1.1 million for the quarter ended June 30, 2018, compared to the same period in 2017 due primarily to downward pricing pressure. The "Tom Joyner Fantastic Voyage" took place during the second quarters of 2018 and 2017 and generated revenue of approximately $9.4 million and $9.4 million, respectively, for Reach Media. Finally, net revenues for our digital segment decreased 2.7% for the three months ended June 30, 2018, compared to the same period in 2017, primarily due to a decrease in direct revenues.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, decreased to approximately $81.0 million for the quarter ended June 30, 2018, down 3.8% from the approximately $84.2 million incurred for the comparable quarter in 2017. The overall operating expense decrease was driven by lower programming and technical expenses as well as lower of selling, general and administrative expenses, which was partially offset by an increase in corporate selling, general and administrative expenses.

Depreciation and amortization expense decreased 2.2% for the quarter ended June 30, 2018, primarily due to the mix of assets approaching or near the end of their useful lives.

Interest expense decreased to approximately $19.2 million for the quarter ended June 30, 2018, compared to approximately $19.9 million for the same period in 2017. The Company made cash interest payments of approximately $19.2 million on its outstanding debt for the quarter ended June 30, 2018, compared to cash interest payments of approximately $18.2 million on all outstanding instruments for the quarter ended June 30, 2017. On April 18, 2017, the Company closed on a new senior secured credit facility (the "2017 Credit Facility"). The proceeds from the 2017 Credit Facility were used to prepay in full the Company's previously existing senior secured credit facility and the agreement governing such credit facility was terminated on April 18, 2017.

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 loss on retirement of debt of approximately $7.1 million for the three months ended June 30, 2017, was due to the retirement of the 2015 Credit Facility during the second quarter. This amount included a write-off of previously capitalized debt financing costs and original issue discount associated with the 2015 Credit Facility, and costs associated with the financing transactions.

The increase in stock-based compensation for the three months ended June 30, 2018, compared to the same period in 2017, is primarily due to grants of stock awards for certain executive officers and other management personnel.

The impairment of long-lived assets for the three months ended June 30, 2017, was related to a non-cash impairment charge recorded to reduce the carrying value of our Houston radio broadcasting licenses.

The gain on sale-leaseback for the three months ended June 30, 2017, was due to the Company closing on its sale of certain land, towers and equipment to a third party.  The Company is leasing certain of the assets back from the buyer as a part of its normal operations. The Company received proceeds of approximately $25.0 million, resulting in an overall net gain on sale of approximately $22.5 million, of which approximately $14.4 million was recognized immediately during the second quarter of 2017, and approximately $8.1 million which was deferred and will be recognized into income over the lease term of ten years.

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, that results in a tax rate of (187.4)%, of which approximately $12.4 million is attributable to deferred tax benefits that are expected to be recognizable at the end of the year, and a discrete tax benefit of approximately $3.2 million primarily related to state rate and legislative changes. For the three months ended June 30, 2017, we recorded a provision for income taxes of $182,000 on pre-tax income from continuing operations of approximately $1.2 million. The Company paid $493,000 and $396,000 in taxes for the quarters ended June 30, 2018 and 2017, respectively.   

Other income, net increased to approximately $2.0 million for the quarter ended June 30, 2018, compared to approximately $1.6 million for the same period in 2017. For the three months ended June 30, 2018 and 2017, the Company recognized approximately $1.8 million and $1.5 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, 2018, compared to the same period in 2017.

Other pertinent financial information includes capital expenditures of approximately $1.2 million and $2.3 million for the quarters ended June 30, 2018 and 2017, respectively. 

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. During the three months ended June 30, 2017, the Company did not repurchase any Class A common stock and repurchased 1,054,290 shares of Class D common stock in the amount of approximately $2.1 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, 2018, the Company executed a Stock Vest Tax Repurchase of 10,646 shares of Class D Common Stock in the amount of $22,000. Comparatively, during three months ended June 30, 2017, the Company repurchased 7,699 shares of Class D Common Stock, to satisfy employee tax obligations, in the amount of $23,000.

On July 3, 2018, the Company repurchased approximately $5 million of its 2020 Notes at an average price of approximately 97.25% of par. The Company routinely monitors its long-term debt profile and upcoming debt maturities and may from time to time seek to opportunistically de-lever by retiring portions of its outstanding debt securities. This de-levering may take the form of debt repurchases or exchanges for other securities, in open-market purchases, privately negotiated transactions or otherwise.  Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.  The amounts involved in any such transactions may vary and such transaction, individually or in the aggregate may be material. 

On or about August 8, 2018, the Company will close on its previously announced sale of the assets of one of its Detroit, Michigan, radio stations, WPZR-FM (102.7 FM), to Educational Media Foundation, of California, for total consideration of approximately $12.7 million. As part of the deal, the Company will also receive 3 FM translators that service the Detroit metropolitan area, and these signals will be combined with its existing FM translator to multicast the Detroit Praise Network.

On or about August 9, 2018, the Company will close on its previously announced acquisition of the assets of the radio station The Team 980 (WTEM 980 AM) from Red Zebra Broadcasting. Upon closing, the Company will also enter into an agreement with the Washington Redskins to ensure that all Redskins games, as well as pregame and postgame programming, will remain on The Team 980.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three and six months ended June 30, 2018 and 2017 are included.






Three Months Ended June 30, 2018






(in thousands, unaudited)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Digital

Television

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)

 






Three Months Ended June 30, 2017






(in thousands, unaudited)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Digital

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

117,638

$

48,161

$

17,528

$

6,740

$

45,369

$

(160)


OPERATING EXPENSES:














Programming and technical 


33,009


9,220


5,633


3,510


14,667


(21)


Selling, general and administrative


42,847


19,894


9,764


4,707


8,621


(139)


Corporate selling, general and administrative


8,328


-


463


-


830


7,035


Stock-based compensation


158


63


-


-


-


95


Depreciation and amortization


8,432


939


52


463


6,568


410


Impairment of long-lived assets


12,756


12,756


-


-


-


-


Total operating expenses


105,530


42,872


15,912


8,680


30,686


7,380


           Operating income (loss) 


12,108


5,289


1,616


(1,940)


14,683


(7,540)


INTEREST INCOME


45


-


-


-


-


45


INTEREST EXPENSE


19,863


368


-


-


1,919


17,576


GAIN ON SALE-LEASEBACK


(14,411)


(14,411)


-


-


-


-


LOSS ON RETIREMENT OF DEBT


7,083


-


-


-


-


7,083


OTHER INCOME, net


(1,574)


(153)


-


-


-


(1,421)


Income (loss) before provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries 


1,192


19,485


1,616


(1,940)


12,764


(30,733)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


182


7,650


584


72


4,841


(12,965)


CONSOLIDATED NET INCOME (LOSS) 


1,010


11,835


1,032


(2,012)


7,923


(17,768)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


208


-


-


-


-


208


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

802

$

11,835

$

1,032

$

(2,012)

$

7,923

$

(17,976)


















Adjusted EBITDA2

$

36,653

$

19,243

$

1,686

$

(1,447)

$

21,257

$

(4,086)

 






Six Months Ended June 30, 2018






(in thousands, unaudited)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Digital

Television

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)

 






Six Months Ended June 30, 2017






(in thousands, unaudited)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting


Media


Digital

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

218,927

$

87,898

$

25,191

$

12,246

$

93,924

$

(332)


OPERATING EXPENSES:














Programming and technical 


64,906


17,137


10,826


6,113


30,858


(28)


Selling, general and administrative


77,302


38,230


11,262


8,749


19,305


(244)


Corporate selling, general and administrative


18,367


-


1,686


-


3,142


13,539


Stock-based compensation


291


127


-


-


-


164


Depreciation and amortization


16,744


1,896


106


804


13,129


809


Impairment of long-lived assets


12,756


12,756


-


-


-


-


Total operating expenses


190,366


70,146


23,880


15,666


66,434


14,240


           Operating income (loss) 


28,561


17,752


1,311


(3,420)


27,490


(14,572)


INTEREST INCOME


148


-


-


-


-


148


INTEREST EXPENSE


40,209


705


-


-


3,838


35,666


GAIN ON SALE-LEASEBACK


(14,411)


(14,411)


-


-


-


-


LOSS ON RETIREMENT OF DEBT


7,083


-


-


-


-


7,083


OTHER INCOME, net


(2,895)


(178)


-


-


-


(2,717)


(Loss) income before provision for (benefit from) income taxes and
noncontrolling interest in income of subsidiaries 


(1,277)


31,636


1,311


(3,420)


23,652


(54,456)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


70


12,312


462


93


9,066


(21,863)


CONSOLIDATED NET (LOSS ) INCOME


(1,347)


19,324


849


(3,513)


14,586


(32,593)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


164


-


-


-


-


164


NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(1,511)

$

19,324

$

849

$

(3,513)

$

14,586

$

(32,757)


















Adjusted EBITDA2

$

64,398

$

32,992

$

1,477

$

(2,580)

$

40,653

$

(8,144)

Urban One, Inc. will hold a conference call to discuss its results for the second fiscal quarter of 2018. The conference call is scheduled for Wednesday, August 08, 2018 at 10:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free 1-800-230-1085; international callers may dial direct (+1) 612-288-0337.

A replay of the conference call will be available from 12:00 p.m. EDT August 08, 2018 until 11:59 p.m. EDT August 11, 2018. 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 452281.

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), formerly known as Radio One, Inc., 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. At June 30, 2018, as one of the nation's largest radio broadcasting companies, Urban One owned and/or operated 56 broadcast stations 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, Russ Parr Morning Show, Rickey Smiley Morning Show, Get up Morning! with Erica Campbell, DL Hughley Show, Willie Moore Jr Show, Nightly Spirit with Darlene McCoy, Reverend Al Sharpton Show. In addition to its radio and television broadcast assets, Urban One owns Interactive One, LLC (ionedigital.com), the largest digital resource for urban enthusiasts and Blacks, reaching millions each month through its Cassius and BHM Digital platforms. Additionally, One Solution, the Company's branded content agency and studio combines the dynamics of Urban One's holdings to provide brands with an integrated and effectively engaging marketing approach that reaches 82% of Black Americans throughout the country.

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, 2018 and 2017, Urban One had 46,033,402 and 47,816,723 shares of common stock outstanding on a weighted average basis (basic), respectively.  For the six months ended June 30, 2018 and 2017, Urban One had 46,321,633 and 47,890,618 shares of common stock outstanding on a weighted average basis (basic), respectively. 

4              For the three months ended June 30, 2018 and 2017, Urban One had 48,438,693 and 48,237,113 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively.  For the six months ended June 30, 2018 and 2017, Urban One had 48,777,798 and 47,890,618 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.

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