WASHINGTON, Nov. 2, 2017 /PRNewswire/ -- Urban One, Inc.
(NASDAQ: UONEK and UONE) today reported its results for the quarter
ended September 30, 2017. Net
revenue was approximately $112.1
million, an increase of 1.1% from the same period in 2016.
Broadcast and digital operating income1 was
approximately $40.7 million, a
decrease of 5.3% from the same period in 2016. The Company reported
operating income of approximately $3.5
million for the three months ended September 30, 2017, compared to $24.5 million for the same period in 2016. Net
loss was approximately $7.9 million
or $0.17 per share (basic) compared
to net loss of $423,000 or
$0.01 per share (basic) for the same
period in 2016.
Alfred C. Liggins, III, Urban
One's CEO and President stated, "Our radio segment core revenues
have stabilized, and for the third quarter we outperformed our
markets by 130 basis points according to Miller Kaplan data. Of our four largest
clusters, Atlanta, Baltimore and Houston all outperformed their respective
markets. For the fourth quarter, radio division core revenues are
pacing up approximately 1.0%, which excludes the impact of
political advertising revenues. The radio bottom line was adversely
impacted by higher royalty expenses, which was the result of a
favorable true-up in the prior year plus the additional expense
associated with Global Music Rights. Our digital revenues were
boosted by the integration of BHM, which produced positive Adjusted
EBITDA of approximately $0.5 million
in the quarter. Cable TV advertising revenues continued to be
impacted by soft ratings, although there was a significant
sequential improvement from Q2, as total day and prime household
ratings were up 3.0% and 7.8%, respectively, while total day
and prime Persons 25-54 demographic ratings were up 11.4% and
20.4%, respectively, against the second quarter. Our MGM investment
produced approximately $1.5 million
of Adjusted EBITDA, and is performing in line with expectations.
During the quarter we repurchased $20.0
million of our 2020 Notes, which re-affirms our commitment
to de-leveraging the Company over time."
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
(in thousands, except
share data)
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
112,078
|
|
$
110,856
|
|
$
331,005
|
|
$
342,663
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
34,892
|
|
32,093
|
|
99,798
|
|
96,789
|
|
Selling, general and
administrative, excluding stock-based compensation
|
36,525
|
|
35,806
|
|
113,827
|
|
114,347
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
10,279
|
|
9,173
|
|
28,646
|
|
32,425
|
|
Stock-based
compensation
|
1,655
|
|
782
|
|
1,946
|
|
2,319
|
|
Depreciation and
amortization
|
8,804
|
|
8,469
|
|
25,548
|
|
25,723
|
|
Impairment of
long-lived assets
|
16,392
|
|
-
|
|
29,148
|
|
-
|
|
Total operating
expenses
|
108,547
|
|
86,323
|
|
298,913
|
|
271,603
|
|
Operating income
|
3,531
|
|
24,533
|
|
32,092
|
|
71,060
|
|
INTEREST
INCOME
|
12
|
|
51
|
|
160
|
|
174
|
|
INTEREST
EXPENSE
|
19,938
|
|
20,319
|
|
60,147
|
|
61,488
|
|
GAIN ON
SALE-LEASEBACK
|
-
|
|
-
|
|
(14,411)
|
|
-
|
|
(GAIN) LOSS ON
RETIREMENT OF DEBT
|
(690)
|
|
-
|
|
6,393
|
|
(2,646)
|
|
OTHER (INCOME),
net
|
(1,850)
|
|
(22)
|
|
(4,745)
|
|
(76)
|
|
(Loss) income before
(benefit from) provision for income taxes and noncontrolling
interest in income of subsidiaries
|
(13,855)
|
|
4,287
|
|
(15,132)
|
|
12,468
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
(6,037)
|
|
4,307
|
|
(5,967)
|
|
8,265
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
(7,818)
|
|
(20)
|
|
(9,165)
|
|
4,203
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
68
|
|
403
|
|
232
|
|
1,259
|
|
CONSOLIDATED NET
(LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(7,886)
|
|
$
(423)
|
|
$
(9,397)
|
|
$
2,944
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
|
|
|
|
|
|
|
|
CONSOLIDATED NET
(LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(7,886)
|
|
$
(423)
|
|
$
(9,397)
|
|
$
2,944
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic3
|
46,681,585
|
|
47,481,004
|
|
47,487,607
|
|
48,066,267
|
|
Weighted average
shares outstanding - diluted4
|
46,681,585
|
|
47,481,004
|
|
47,487,607
|
|
49,240,165
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
PER SHARE DATA -
basic and diluted:
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(in thousands, except
per share data)
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common stockholders
(basic)
|
$
(0.17)
|
|
$
(0.01)
|
|
$
(0.20)
|
|
$
0.06
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common stockholders
(diluted)
|
$
(0.17)
|
|
$
(0.01)
|
|
$
(0.20)
|
|
$
0.06
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
Broadcast and digital
operating income 1
|
$
40,661
|
|
$
42,957
|
|
$
117,380
|
|
$
131,527
|
Broadcast and digital
operating income margin (% of net revenue)
|
36.3%
|
|
38.8%
|
|
35.5%
|
|
38.4%
|
|
|
|
|
|
|
|
|
Broadcast and
digital operating income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common
stockholders
|
$
(7,886)
|
|
$
(423)
|
|
$
(9,397)
|
|
$
2,944
|
Add back non-broadcast and digital operating income items included
in consolidated net (loss) income:
|
|
|
|
|
|
|
|
Interest
income
|
(12)
|
|
(51)
|
|
(160)
|
|
(174)
|
Interest
expense
|
19,938
|
|
20,319
|
|
60,147
|
|
61,488
|
(Benefit from)
provision for income taxes
|
(6,037)
|
|
4,307
|
|
(5,967)
|
|
8,265
|
Corporate selling,
general and administrative expenses
|
10,279
|
|
9,173
|
|
28,646
|
|
32,425
|
Stock-based
compensation
|
1,655
|
|
782
|
|
1,946
|
|
2,319
|
Gain on
sale-leaseback
|
-
|
|
-
|
|
(14,411)
|
|
-
|
(Gain) loss on
retirement of debt
|
(690)
|
|
-
|
|
6,393
|
|
(2,646)
|
Other (income),
net
|
(1,850)
|
|
(22)
|
|
(4,745)
|
|
(76)
|
Depreciation and
amortization
|
8,804
|
|
8,469
|
|
25,548
|
|
25,723
|
Noncontrolling
interest in income of subsidiaries
|
68
|
|
403
|
|
232
|
|
1,259
|
Impairment of
long-lived assets
|
16,392
|
|
-
|
|
29,148
|
|
-
|
Broadcast and digital
operating income
|
$
40,661
|
|
$
42,957
|
|
$
117,380
|
|
$
131,527
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
33,954
|
|
$
34,883
|
|
$
98,353
|
|
$
105,549
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income attributable to common
stockholders:
|
$
(7,886)
|
|
$
(423)
|
|
$
(9,397)
|
|
$
2,944
|
Interest
income
|
(12)
|
|
(51)
|
|
(160)
|
|
(174)
|
Interest
expense
|
19,938
|
|
20,319
|
|
60,147
|
|
61,488
|
(Benefit from)
provision for income taxes
|
(6,037)
|
|
4,307
|
|
(5,967)
|
|
8,265
|
Depreciation and
amortization
|
8,804
|
|
8,469
|
|
25,548
|
|
25,723
|
EBITDA
|
$
14,807
|
|
$
32,621
|
|
$
70,171
|
|
$
98,246
|
Stock-based
compensation
|
1,655
|
|
782
|
|
1,946
|
|
2,319
|
Gain on
sale-leaseback
|
-
|
|
-
|
|
(14,411)
|
|
-
|
(Gain) loss on
retirement of debt
|
(690)
|
|
-
|
|
6,393
|
|
(2,646)
|
Other (income),
net
|
(1,850)
|
|
(22)
|
|
(4,745)
|
|
(76)
|
Noncontrolling
interest in income of subsidiaries
|
68
|
|
403
|
|
232
|
|
1,259
|
Employment Agreement
Award and incentive plan award expenses
|
1,391
|
|
1,027
|
|
3,875
|
|
5,802
|
Severance-related
costs
|
651
|
|
72
|
|
1,254
|
|
645
|
Cost method investment
income
|
1,530
|
|
-
|
|
4,490
|
|
-
|
Impairment of
long-lived assets
|
16,392
|
|
-
|
|
29,148
|
|
-
|
Adjusted
EBITDA
|
$
33,954
|
|
$
34,883
|
|
$
98,353
|
|
$
105,549
|
|
September 30,
2017
|
|
December 31,
2016
|
(unaudited)
|
|
|
|
|
(in
thousands)
|
SELECTED BALANCE
SHEET DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
$
52,947
|
|
$
46,781
|
|
Intangible assets,
net
|
978,348
|
|
1,018,333
|
|
Total
assets
|
1,325,616
|
|
1,358,786
|
|
Total debt (including
current portion, net of original issue discount and issuance
costs)
|
990,805
|
|
1,006,236
|
|
Total
liabilities
|
1,395,947
|
|
1,417,502
|
|
Total stockholders'
deficit
|
(80,202)
|
|
(71,126)
|
|
Redeemable
noncontrolling interest
|
9,871
|
|
12,410
|
|
|
|
|
|
|
|
September 30,
2017
|
|
Applicable
Interest Rate
|
|
(in
thousands)
|
|
|
SELECTED LEVERAGE
DATA:
|
|
|
2017 Credit Facility,
net of original issue discount and issuance costs of approximately
$8.4 million (subject to variable rates) (a)
|
$
339,895
|
|
5.34%
|
|
9.25% senior
subordinated notes due February 2020, net of original issue
discount and issuance costs of approximately $1.6 million (fixed
rate)
|
293,406
|
|
9.25%
|
|
7.375% senior secured
notes due April 2022, net of original issue discount and issuance
costs of approximately $4.4 million (fixed rate)
|
345,632
|
|
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
September 30,
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
$
Change
|
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
50,881
|
|
$
|
52,475
|
|
$
|
(1,594)
|
|
|
-3.0%
|
|
Political
Advertising
|
|
|
243
|
|
|
477
|
|
|
(234)
|
|
|
-49.1%
|
|
Digital
Advertising
|
|
|
8,107
|
|
|
6,417
|
|
|
1,690
|
|
|
26.3%
|
|
Cable Television
Advertising
|
|
|
20,791
|
|
|
20,831
|
|
|
(40)
|
|
|
-0.2%
|
|
Cable Television
Affiliate Fees
|
|
|
26,558
|
|
|
25,822
|
|
|
736
|
|
|
2.9%
|
|
Event Revenues &
Other
|
|
|
5,498
|
|
|
4,834
|
|
|
664
|
|
|
13.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
112,078
|
|
$
|
110,856
|
|
$
|
1,222
|
|
|
1.1%
|
|
Net revenue increased to approximately $112.1 million for the quarter ended September 30, 2017, from approximately
$110.9 million for the same period in
2016, an increase of 1.1%. Net revenues from our radio broadcasting
segment decreased 0.7% compared to the same period in 2016. We
experienced net revenue growth most significantly in our
Atlanta, Cleveland, Detroit, Indianapolis and Richmond markets with revenue declines most
significantly in our Columbus,
Dallas, Houston, Raleigh and Washington DC markets. We recognized
approximately $48.4 million of
revenue from our cable television segment during the three months
ended September 30, 2017, compared to
approximately $46.8 million for the
same period in 2016, with the increase primarily from revenue from
certain international licensing contracts of approximately
$1.0 million and an increase in
affiliate fees. Net revenue from our Reach Media segment
decreased approximately $1.7 million
for the quarter ended September 30,
2017, compared to the same period in 2016 due primarily to
weaker demand. Finally, net revenues for our digital segment
increased approximately $1.7 million
for the three months ended September 30,
2017, compared to the same period in 2016, primarily from
performance from our new digital acquisition.
Operating expenses, excluding depreciation and amortization,
stock-based compensation and impairment of long-lived assets,
increased to approximately $81.7
million for the quarter ended September 30, 2017, up 6.0% from the
approximately $77.1 million incurred
for the comparable quarter in 2016. The operating expense increase
was primarily driven by a combined increase of approximately
$2.6 million of higher programming
and technical expenses at our radio broadcasting and digital
segments. The increase at our radio broadcasting
segment relates primarily to a true-up of music licensing costs
recorded in the prior period. Our digital segment generated
an increase in programming and technical expenses due to our new
digital acquisition and our increased investment in video content,
primarily related to increased headcount contributing to higher
payroll costs. There was also an increase in corporate selling,
general and administrative expenses.
Depreciation and amortization expense increased to approximately
$8.8 million compared to
approximately $8.5 million for the
quarter ended September 30, 2016. The
increase was primarily due to amortization of newly-acquired
intangible assets.
Interest expense decreased to approximately $19.9 million for the quarter ended September 30, 2017, compared to approximately
$20.3 million for the same period in
2016. The Company made cash interest payments of approximately
$20.2 million on its outstanding debt
for the quarter ended September 30,
2017, compared to cash interest payments of approximately
$19.8 million on all outstanding
instruments for the quarter ended September
30, 2016. As previously announced, 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 $690,000 for the three months ended September 30, 2017, was due to the redemption of
approximately $20 million of our 2020
Notes at a discount.
The impairment of long-lived assets for the three months ended
September 30, 2017, of approximately
$16.4 million, was related to a
non-cash impairment charge recorded to reduce the carrying value of
our Columbus and Houston radio broadcasting licenses.
The Company began using the estimated annual effective tax rate
method under ASC 740-270, "Interim Reporting" to calculate
the provision for income taxes at the beginning of 2017. For the
three months ended September 30,
2017, we recorded a benefit from income taxes of
approximately $6.0 million on a
pre-tax loss from continuing operations of approximately
$13.9 million. The provision for
income taxes for the three months ended September 30, 2016 of approximately $4.3 million was primarily attributable to the
deferred tax liability for indefinite-lived intangible assets,
based on a discrete tax provision. The Company paid $66,000 and $39,000
in taxes for the quarters ended September
30, 2017 and 2016, respectively.
Other income, net increased to approximately $1.9 million for the three months ended
September 30, 2017, compared to
$22,000 for the same period in 2016.
The primary driver of the increase in other income was from our
investment in MGM.
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, 2017, versus the same period in
2016.
Other pertinent financial information includes capital
expenditures of $964,000 and
approximately $1.6 million for the
quarters ended September 30, 2017 and
2016, respectively. As of September
30, 2017, the Company had total debt (net of cash and
restricted cash balances and original issue discount) of
approximately $937.9 million. During
the three months ended September 30,
2017, the Company did not repurchase any Class A common
stock and repurchased 672,366 shares of Class D common stock in the
amount of approximately $1.3
million. During the three months ended September 30, 2016, the Company did not
repurchase any Class A common stock and repurchased 619,418 shares
of Class D common stock in the amount of approximately $1.9 million. During the nine months ended
September 30, 2017, the Company did
not repurchase any Class A common stock and repurchased 1,726,656
shares of Class D common stock in the amount of approximately
$3.4 million. During the nine
months ended September 30, 2016, the
Company repurchased 1,255,592 shares of Class D common stock in the
aggregate amount of approximately $3.0
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, 2017, the Company
repurchased 35,370 shares of Class D Common Stock, to satisfy
employee tax obligations, in the amount of $67,000. During the nine months ended
September 30, 2017, the Company
repurchased 360,172 shares of Class D Common Stock, to satisfy
employee tax obligations, in the amount of approximately
$1.0 million. Comparatively,
during the nine months ended September 30,
2016, the Company repurchased 330,111 shares of Class D
common stock, to satisfy employee tax obligations, in the amount of
$568,000. During the three months
ended September 30, 2016, the Company
did not repurchase any shares to satisfy tax obligations.
As previously announced, effective January 1, 2017, the Company changed its
reportable segment disclosures. Along with the results of
Interactive One, all digital components from our reportable
segments are now a part of a newly formed reportable segment called
"Digital". This new reportable segment better reflects the manner
in which we manage our business and better reflects our operational
structure. Segment data for the three and nine months ended
September 30, 2016 has been
reclassified to conform to the current period presentation. These
reclassifications occurred among all segments.
The Company previously presented the reclassified third quarter
2016 results in the press release dated August 2, 2017. The reclassified results
for the nine months of 2016 are presented at the end of this press
release.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three and nine months ended
September 30, 2017 and 2016 are
included. These detailed, unaudited and adjusted statements of
operations include certain reclassifications. These
reclassifications had no effect on previously reported net income
or loss, or any other previously reported statements of operations,
balance sheet or cash flow amounts.
|
|
|
|
|
Three Months Ended
September 30, 2017
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
112,078
|
$
|
45,184
|
$
|
10,491
|
$
|
8,107
|
$
|
48,374
|
$
|
(78)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
34,892
|
|
8,920
|
|
5,441
|
|
3,396
|
|
17,156
|
|
(21)
|
|
Selling, general and
administrative
|
|
36,525
|
|
18,845
|
|
3,644
|
|
4,778
|
|
9,314
|
|
(56)
|
|
Corporate selling,
general and administrative
|
|
10,279
|
|
-
|
|
927
|
|
4
|
|
2,355
|
|
6,993
|
|
Stock-based
compensation
|
|
1,655
|
|
122
|
|
6
|
|
-
|
|
204
|
|
1,323
|
|
Depreciation and
amortization
|
|
8,804
|
|
923
|
|
52
|
|
812
|
|
6,567
|
|
450
|
|
Impairment of
long-lived assets
|
|
16,392
|
|
16,392
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
108,547
|
|
45,202
|
|
10,070
|
|
8,990
|
|
35,596
|
|
8,689
|
|
Operating income (loss)
|
|
3,531
|
|
(18)
|
|
421
|
|
(883)
|
|
12,778
|
|
(8,767)
|
|
INTEREST
INCOME
|
|
12
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12
|
|
INTEREST
EXPENSE
|
|
19,938
|
|
376
|
|
-
|
|
-
|
|
1,919
|
|
17,643
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
(690)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(690)
|
|
OTHER INCOME,
net
|
|
(1,850)
|
|
(210)
|
|
-
|
|
-
|
|
-
|
|
(1,640)
|
|
(Loss)
income before (benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries
|
|
(13,855)
|
|
(184)
|
|
421
|
|
(883)
|
|
10,859
|
|
(24,068)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(6,037)
|
|
(21)
|
|
189
|
|
(13)
|
|
4,035
|
|
(10,227)
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(7,818)
|
|
(163)
|
|
232
|
|
(870)
|
|
6,824
|
|
(13,841)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
68
|
|
-
|
|
-
|
|
-
|
|
-
|
|
68
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(7,886)
|
$
|
(163)
|
$
|
232
|
$
|
(870)
|
$
|
6,824
|
$
|
(13,909)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
33,954
|
$
|
17,547
|
$
|
634
|
$
|
(60)
|
$
|
19,858
|
$
|
(4,025)
|
|
|
|
|
|
Three Months Ended
September 30, 2016
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
110,856
|
$
|
45,524
|
$
|
12,153
|
$
|
6,417
|
$
|
46,811
|
$
|
(49)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
32,093
|
|
7,348
|
|
5,343
|
|
2,325
|
|
17,077
|
|
-
|
|
Selling, general and
administrative
|
|
35,806
|
|
18,144
|
|
4,292
|
|
4,265
|
|
9,154
|
|
(49)
|
|
Corporate selling,
general and administrative
|
|
9,173
|
|
-
|
|
415
|
|
3
|
|
2,279
|
|
6,476
|
|
Stock-based
compensation
|
|
782
|
|
49
|
|
11
|
|
-
|
|
-
|
|
722
|
|
Depreciation and
amortization
|
|
8,469
|
|
1,035
|
|
59
|
|
417
|
|
6,559
|
|
399
|
|
Total operating
expenses
|
|
86,323
|
|
26,576
|
|
10,120
|
|
7,010
|
|
35,069
|
|
7,548
|
|
Operating income (loss)
|
|
24,533
|
|
18,948
|
|
2,033
|
|
(593)
|
|
11,742
|
|
(7,597)
|
|
INTEREST
INCOME
|
|
51
|
|
-
|
|
-
|
|
-
|
|
-
|
|
51
|
|
INTEREST
EXPENSE
|
|
20,319
|
|
330
|
|
-
|
|
-
|
|
1,918
|
|
18,071
|
|
OTHER INCOME,
net
|
|
(22)
|
|
(16)
|
|
-
|
|
-
|
|
-
|
|
(6)
|
|
Income
(loss) before provision for income taxes and noncontrolling
interest in income of subsidiaries
|
|
4,287
|
|
18,634
|
|
2,033
|
|
(593)
|
|
9,824
|
|
(25,611)
|
|
PROVISION FOR INCOME
TAXES
|
|
4,307
|
|
4,212
|
|
34
|
|
12
|
|
49
|
|
-
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(20)
|
|
14,422
|
|
1,999
|
|
(605)
|
|
9,775
|
|
(25,611)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
403
|
|
-
|
|
-
|
|
-
|
|
-
|
|
403
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(423)
|
$
|
14,422
|
$
|
1,999
|
$
|
(605)
|
$
|
9,775
|
$
|
(26,014)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
34,883
|
$
|
20,100
|
$
|
2,103
|
$
|
(176)
|
$
|
18,305
|
$
|
(5,449)
|
|
|
|
|
|
Nine Months Ended
September 30, 2017
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
331,005
|
$
|
133,082
|
$
|
35,682
|
$
|
20,353
|
$
|
142,298
|
$
|
(410)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
99,798
|
|
26,058
|
|
16,267
|
|
9,509
|
|
48,013
|
|
(49)
|
|
Selling, general and
administrative
|
|
113,827
|
|
57,074
|
|
14,906
|
|
13,526
|
|
28,621
|
|
(300)
|
|
Corporate selling,
general and administrative
|
|
28,646
|
|
-
|
|
2,613
|
|
5
|
|
5,496
|
|
20,532
|
|
Stock-based
compensation
|
|
1,946
|
|
249
|
|
6
|
|
-
|
|
204
|
|
1,487
|
|
Depreciation and
amortization
|
|
25,548
|
|
2,819
|
|
158
|
|
1,616
|
|
19,696
|
|
1,259
|
|
Impairment of
long-lived assets
|
|
29,148
|
|
29,148
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
298,913
|
|
115,348
|
|
33,950
|
|
24,656
|
|
102,030
|
|
22,929
|
|
Operating income (loss)
|
|
32,092
|
|
17,734
|
|
1,732
|
|
(4,303)
|
|
40,268
|
|
(23,339)
|
|
INTEREST
INCOME
|
|
160
|
|
-
|
|
-
|
|
-
|
|
-
|
|
160
|
|
INTEREST
EXPENSE
|
|
60,147
|
|
1,082
|
|
-
|
|
-
|
|
5,757
|
|
53,308
|
|
GAIN ON
SALE-LEASEBACK
|
|
(14,411)
|
|
(14,411)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
LOSS ON RETIREMENT OF
DEBT
|
|
6,393
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,393
|
|
OTHER INCOME,
net
|
|
(4,745)
|
|
(388)
|
|
-
|
|
-
|
|
-
|
|
(4,357)
|
|
(Loss)
income before (benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries
|
|
(15,132)
|
|
31,451
|
|
1,732
|
|
(4,303)
|
|
34,511
|
|
(78,523)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(5,967)
|
|
12,291
|
|
651
|
|
80
|
|
13,102
|
|
(32,091)
|
|
CONSOLIDATED NET
(LOSS ) INCOME
|
|
(9,165)
|
|
19,160
|
|
1,081
|
|
(4,383)
|
|
21,409
|
|
(46,432)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
232
|
|
-
|
|
-
|
|
-
|
|
-
|
|
232
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(9,397)
|
$
|
19,160
|
$
|
1,081
|
$
|
(4,383)
|
$
|
21,409
|
$
|
(46,664)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
98,353
|
$
|
50,538
|
$
|
2,111
|
$
|
(2,640)
|
$
|
60,511
|
$
|
(12,167)
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
342,663
|
$
|
138,971
|
$
|
41,055
|
$
|
18,963
|
$
|
143,837
|
$
|
(163)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
96,789
|
|
25,172
|
|
16,237
|
|
6,758
|
|
48,622
|
|
-
|
|
Selling, general and
administrative
|
|
114,347
|
|
56,763
|
|
16,010
|
|
12,338
|
|
29,400
|
|
(164)
|
|
Corporate selling,
general and administrative
|
|
32,425
|
|
-
|
|
2,491
|
|
(25)
|
|
7,594
|
|
22,365
|
|
Stock-based
compensation
|
|
2,319
|
|
188
|
|
31
|
|
6
|
|
-
|
|
2,094
|
|
Depreciation and
amortization
|
|
25,723
|
|
3,256
|
|
148
|
|
1,299
|
|
19,664
|
|
1,356
|
|
Total operating
expenses
|
|
271,603
|
|
85,379
|
|
34,917
|
|
20,376
|
|
105,280
|
|
25,651
|
|
Operating income (loss)
|
|
71,060
|
|
53,592
|
|
6,138
|
|
(1,413)
|
|
38,557
|
|
(25,814)
|
|
INTEREST
INCOME
|
|
174
|
|
-
|
|
-
|
|
-
|
|
-
|
|
174
|
|
INTEREST
EXPENSE
|
|
61,488
|
|
1,001
|
|
-
|
|
-
|
|
5,756
|
|
54,731
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
(2,646)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,646)
|
|
OTHER INCOME,
net
|
|
(76)
|
|
(22)
|
|
-
|
|
-
|
|
-
|
|
(54)
|
|
Income
(loss) before provision for income taxes and noncontrolling
interest in income of subsidiaries
|
|
12,468
|
|
52,613
|
|
6,138
|
|
(1,413)
|
|
32,801
|
|
(77,671)
|
|
PROVISION FOR INCOME
TAXES
|
|
8,265
|
|
8,056
|
|
109
|
|
32
|
|
68
|
|
-
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
4,203
|
|
44,557
|
|
6,029
|
|
(1,445)
|
|
32,733
|
|
(77,671)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
1,259
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,259
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
2,944
|
$
|
44,557
|
$
|
6,029
|
$
|
(1,445)
|
$
|
32,733
|
$
|
(78,930)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA5
|
$
|
105,549
|
$
|
57,576
|
$
|
6,379
|
$
|
(99)
|
$
|
58,221
|
$
|
(16,528)
|
Urban One, Inc. will hold a conference call to discuss its
results for third fiscal quarter of 2017. The conference call is
scheduled for Thursday, November 02,
2017 at 10:00 a.m. EDT. To
participate on this call, U.S. callers may dial toll-free
1-800-230-1059; international callers may dial direct (+1)
612-288-0337.
A replay of the conference call will be available
from 12:00 p.m. EDT November 02, 2017 until 11:59
p.m. EST November 05, 2017. 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 430557.
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. As one of the nation's largest radio
broadcasting companies, Urban One currently owns and/or operates 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,
Ed Lover 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 our historic
use of station operating income, however, reflects our more diverse
business and, therefore, may not be similar 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 Certain reclassifications have been
made to prior year balances to conform to the current year
presentation. These reclassifications had no effect on any
other previously reported or consolidated net income or loss or any
other statement of operations, balance sheet or cash flow
amounts. Where applicable, these financial statements have
been identified as "As Reclassified."
3 For the three months ended
September 30, 2017 and 2016, Urban
One had 46,681,585 and 47,481,004 shares of common stock
outstanding on a weighted average basis (basic),
respectively. For the nine months ended September 30, 2017 and 2016, Urban One had
47,487,607 and 48,066,267 shares of common stock outstanding on a
weighted average basis (basic), respectively.
4 For the three months ended
September 30, 2017 and 2016, Urban
One had 46,681,585 and 47,481,004 shares of common stock
outstanding on a weighted average basis (fully diluted for
outstanding stock options), respectively. For the nine months
ended September 30, 2017 and 2016,
Urban One had 47,487,607 and 49,240,165 shares of common stock
outstanding on a weighted average basis (fully diluted for
outstanding stock options), respectively.
5 "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, 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 our 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.
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SOURCE Urban One, Inc.