WASHINGTON, March 6, 2018 /PRNewswire/ -- Urban One,
Inc. (NASDAQ: UONEK and UONE) today reported its results for the
quarter ended December 31,
2017. Net revenue was approximately $109.0 million, a decrease of 4.0% from the same
period in 2016. Broadcast and digital operating income1
was approximately $44.3 million, an
increase of 2.8% from the same period in 2016. The Company reported
operating income of approximately $20.6
million for the three months ended December 31, 2017, compared to $17.1 million for the same period in 2016. Net
income was approximately $121.3
million or $2.63 per share
(basic) compared to net loss of approximately $3.4 million or $0.07 per share (basic) for the same period in
2016. Adjusted EBITDA2 was approximately $38.7 million for the three months ended
December 31, 2017, compared to
$30.9 million for the same period in
2016, an increase of 25.6%.
Alfred C. Liggins, III, Urban
One's CEO and President stated, "Overall, we produced a strong
quarter from an Adjusted EBITDA standpoint, and as a result we were
able to show full year Adjusted EBITDA growth, despite the
challenging market conditions. Our core radio revenues were up
slightly for the quarter, excluding the impact of political
revenues. Our TV advertising revenues suffered from weak ratings
delivery, which was somewhat offset by growth in affiliate
revenues. Our digital business benefitted from the integration of
our acquisition of the Bossip, Madame Noire and Hip Hop Wired
brands, and was up significantly in both revenue and Adjusted
EBITDA compared to prior year. We were able to control costs, most
notably at TV One and Corporate. During the quarter, we repurchased
a further $20 million of our 9.25%
notes at a discount, and we remain strongly committed to reducing
net leverage."
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
(in thousands, except
share data)
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
109,036
|
|
$
113,556
|
|
$
440,041
|
|
$
456,219
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
30,619
|
|
37,211
|
|
130,417
|
|
134,000
|
|
Selling, general and
administrative, excluding stock-based compensation
|
34,096
|
|
33,252
|
|
147,923
|
|
147,599
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
12,525
|
|
15,107
|
|
41,171
|
|
47,532
|
|
Stock-based
compensation
|
2,701
|
|
1,091
|
|
4,647
|
|
3,410
|
|
Depreciation and
amortization
|
8,468
|
|
8,524
|
|
34,016
|
|
34,247
|
|
Impairment of
long-lived assets
|
-
|
|
1,287
|
|
29,148
|
|
1,287
|
|
Total operating
expenses
|
88,409
|
|
96,472
|
|
387,322
|
|
368,075
|
|
Operating income
|
20,627
|
|
17,084
|
|
52,719
|
|
88,144
|
|
INTEREST
INCOME
|
40
|
|
40
|
|
200
|
|
214
|
|
INTEREST
EXPENSE
|
19,273
|
|
20,148
|
|
79,420
|
|
81,636
|
|
GAIN ON
SALE-LEASEBACK
|
-
|
|
-
|
|
(14,411)
|
|
-
|
|
(GAIN) LOSS ON
RETIREMENT OF DEBT
|
(1,174)
|
|
-
|
|
5,219
|
|
(2,646)
|
|
OTHER INCOME,
net
|
(1,863)
|
|
(852)
|
|
(6,608)
|
|
(928)
|
|
Income (loss) before
(benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries
|
4,431
|
|
(2,172)
|
|
(10,701)
|
|
10,296
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
(117,196)
|
|
1,315
|
|
(123,163)
|
|
9,580
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
121,627
|
|
(3,487)
|
|
112,462
|
|
716
|
|
NET INCOME
(LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
343
|
|
(120)
|
|
575
|
|
1,139
|
|
CONSOLIDATED NET
INCOME (LOSS) ATTRIBUTABLE TO COMMON
STOCKHOLDERS
|
$
121,284
|
|
$
(3,367)
|
|
$
111,887
|
|
$
(423)
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
|
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME (LOSS) ATTRIBUTABLE TO COMMON
STOCKHOLDERS
|
$
121,284
|
|
$
(3,367)
|
|
$
111,887
|
|
$
(423)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic3
|
46,198,362
|
|
47,463,258
|
|
47,169,682
|
|
47,924,609
|
|
Weighted average
shares outstanding - diluted4
|
48,527,664
|
|
47,463,258
|
|
49,632,884
|
|
47,924,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
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 income (loss) attributable to common stockholders
(basic)
|
$
2.63
|
|
$
(0.07)
|
|
$
2.37
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income (loss) attributable to common stockholders
(diluted)
|
$
2.50
|
|
$
(0.07)
|
|
$
2.25
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
|
Broadcast and digital
operating income 1
|
$
44,321
|
|
$
43,093
|
|
$
161,701
|
|
$
174,620
|
|
Broadcast and digital
operating income margin (% of net revenue)
|
40.6%
|
|
37.9%
|
|
36.7%
|
|
38.3%
|
|
|
|
|
|
|
|
|
|
|
Broadcast and
digital operating income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income (loss) attributable to common
stockholders
|
$
121,284
|
|
$
(3,367)
|
|
$
111,887
|
|
$
(423)
|
|
Add back non-broadcast and digital operating income items included
in consolidated net
income (loss):
|
|
|
|
|
|
|
|
|
Interest
income
|
(40)
|
|
(40)
|
|
(200)
|
|
(214)
|
|
Interest
expense
|
19,273
|
|
20,148
|
|
79,420
|
|
81,636
|
|
(Benefit from)
provision for income taxes
|
(117,196)
|
|
1,315
|
|
(123,163)
|
|
9,580
|
|
Corporate selling,
general and administrative expenses
|
12,525
|
|
15,107
|
|
41,171
|
|
47,532
|
|
Stock-based
compensation
|
2,701
|
|
1,091
|
|
4,647
|
|
3,410
|
|
Gain on
sale-leaseback
|
-
|
|
-
|
|
(14,411)
|
|
-
|
|
(Gain) loss on
retirement of debt
|
(1,174)
|
|
-
|
|
5,219
|
|
(2,646)
|
|
Other income,
net
|
(1,863)
|
|
(852)
|
|
(6,608)
|
|
(928)
|
|
Depreciation and
amortization
|
8,468
|
|
8,524
|
|
34,016
|
|
34,247
|
|
Noncontrolling
interest in income (loss) of subsidiaries
|
343
|
|
(120)
|
|
575
|
|
1,139
|
|
Impairment of
long-lived assets
|
-
|
|
1,287
|
|
29,148
|
|
1,287
|
|
Broadcast and digital
operating income
|
$
44,321
|
|
$
43,093
|
|
$
161,701
|
|
$
174,620
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
38,744
|
|
$
30,857
|
|
$
137,098
|
|
$
136,405
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income (loss) attributable to common
stockholders:
|
$
121,284
|
|
$
(3,367)
|
|
$
111,887
|
|
$
(423)
|
|
Interest
income
|
(40)
|
|
(40)
|
|
(200)
|
|
(214)
|
|
Interest
expense
|
19,273
|
|
20,148
|
|
79,420
|
|
81,636
|
|
(Benefit from)
provision for income taxes
|
(117,196)
|
|
1,315
|
|
(123,163)
|
|
9,580
|
|
Depreciation and
amortization
|
8,468
|
|
8,524
|
|
34,016
|
|
34,247
|
|
EBITDA
|
$
31,789
|
|
$
26,580
|
|
$
101,960
|
|
$
124,826
|
|
Stock-based
compensation
|
2,701
|
|
1,091
|
|
4,647
|
|
3,410
|
|
Gain on
sale-leaseback
|
-
|
|
-
|
|
(14,411)
|
|
-
|
|
(Gain) loss on
retirement of debt
|
(1,174)
|
|
-
|
|
5,219
|
|
(2,646)
|
|
Other income,
net
|
(1,863)
|
|
(852)
|
|
(6,608)
|
|
(928)
|
|
Noncontrolling
interest in income (loss) of subsidiaries
|
343
|
|
(120)
|
|
575
|
|
1,139
|
|
Employment Agreement
Award, incentive plan award expenses and other
compensation*
|
4,984
|
|
2,240
|
|
8,858
|
|
8,042
|
|
Severance-related
costs
|
373
|
|
212
|
|
1,629
|
|
856
|
|
Cost method
investment income
|
1,591
|
|
419
|
|
6,081
|
|
419
|
|
Impairment of
long-lived assets
|
-
|
|
1,287
|
|
29,148
|
|
1,287
|
|
Adjusted
EBITDA
|
$
38,744
|
|
$
30,857
|
|
$
137,098
|
|
$
136,405
|
|
|
|
|
|
|
|
|
|
|
* Certain
reclassifications have been made to prior year balances to conform
to the current year presentation.
|
|
|
|
|
|
|
|
These
reclassifications had no effect on previously reported consolidated
net income or loss or any other statement of operations, balance
sheet or cash flow amounts.
|
|
December 31,
2017
|
|
December 31,
2016
|
(unaudited)
|
|
|
|
|
(in
thousands)
|
SELECTED BALANCE
SHEET DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
$
37,811
|
|
$
46,781
|
|
Intangible assets,
net
|
971,484
|
|
1,018,333
|
|
Total
assets
|
1,316,755
|
|
1,358,786
|
|
Total debt (including
current portion, net of original issue discount and issuance
costs)
|
970,666
|
|
1,006,236
|
|
Total
liabilities
|
1,263,320
|
|
1,417,502
|
|
Total stockholders'
equity (deficit)
|
42,655
|
|
(71,126)
|
|
Redeemable
noncontrolling interest
|
10,780
|
|
12,410
|
|
|
|
|
|
|
|
December 31,
2017
|
|
Applicable Interest
Rate
|
|
(in
thousands)
|
|
|
SELECTED LEVERAGE
DATA:
|
|
|
2017 Credit Facility,
net of original issue discount and issuance costs of
approximately
$8.1 million (subject to variable rates) (a)
|
$
339,289
|
|
5.70%
|
|
9.25% senior
subordinated notes due February 2020, net of original issue
discount and
issuance costs of approximately $1.3 million (fixed
rate)
|
273,672
|
|
9.25%
|
|
7.375% senior secured
notes due April 2022, net of original issue discount and
issuance
costs of approximately $4.2 million (fixed rate)
|
345,833
|
|
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
December 31,
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
$
Change
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
51,330
|
|
$
|
51,025
|
|
$
|
305
|
|
0.6%
|
Political
Advertising
|
|
|
835
|
|
|
5,719
|
|
|
(4,884)
|
|
-85.4%
|
Digital
Advertising
|
|
|
10,382
|
|
|
7,290
|
|
|
3,092
|
|
42.4%
|
Cable Television
Advertising
|
|
|
18,502
|
|
|
22,687
|
|
|
(4,185)
|
|
-18.4%
|
Cable Television
Affiliate Fees
|
|
|
26,289
|
|
|
25,326
|
|
|
963
|
|
3.8%
|
Event Revenues &
Other
|
|
|
1,698
|
|
|
1,509
|
|
|
189
|
|
12.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
109,036
|
|
$
|
113,556
|
|
$
|
(4,520)
|
|
-4.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue decreased to approximately $109.0 million for the quarter ended December 31, 2017, from approximately
$113.6 million for the same period in
2016, a decrease of 4.0%. Net revenues from our radio broadcasting
segment decreased 7.5% compared to the same period in 2016. We
experienced net revenue growth most significantly in our
Houston and Richmond markets with revenue declines most
significantly in our Charlotte,
Cincinnati, Columbus, Detroit, Indianapolis, Raleigh and St.
Louis. We recognized approximately $45.2 million of revenue from our cable
television segment during the quarter ended December 31, 2017, compared to approximately
$48.0 million for the same period in
2016, with the decrease primarily from lower advertising
sales. Net revenue from our Reach Media segment decreased
approximately $1.4 million for the
quarter ended December 31, 2017,
compared to the same period in 2016 due primarily to weaker demand.
Finally, net revenues for our digital segment increased
approximately $3.1 million for the
quarter ended December 31, 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,
decreased to approximately $77.2
million for the quarter ended December 31, 2017, down 9.7% from the
approximately $85.6 million incurred
for the comparable quarter in 2016. The operating expense decrease
was primarily driven by a combined decrease of approximately
$2.6 million of corporate selling,
general and administrative expenses across all of our segments, as
well as a decrease of programming and technical expenses at our
cable television segment. Our cable broadcasting segment
generated a decrease in programming and technical expenses of
approximately $8.3 million for the
quarter ended December 31, 2017,
compared to the same period in 2016, due primarily to lower program
content expense driven by reduced amortization for original
programing.
Depreciation and amortization expense decreased 0.7% for the
quarter ended December 31, 2017,
primarily due to completion of useful lives of assets.
Interest expense decreased to approximately $19.3 million for the quarter ended December 31, 2017, compared to approximately
$20.1 million for the same period in
2016. The Company made cash interest payments of approximately
$18.9 million on its outstanding debt
for the quarter ended December 31,
2017, compared to cash interest payments of approximately
$18.0 million on all outstanding
instruments for the quarter ended December
31, 2016. 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 approximately $1.2 million for the quarter ended December 31, 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 quarter ended
December 31, 2016, was related to a
non-cash impairment charge of approximately $1.3 million associated with of our Columbus market radio broadcasting
licenses.
For the quarter ended December 31,
2017, we recorded a benefit from income taxes of
approximately $117.2 million
primarily attributable to the reduction of the deferred tax
liability due to the federal tax rate change from 35% to 21%, and
other tax impacts due to the 2017 Tax Cut and Jobs Act. The
provision for income taxes for the quarter ended December 31, 2016 of approximately $1.3 million was primarily attributable to the
deferred tax liability for indefinite-lived intangible assets,
based on a discrete tax provision. The Company received a net tax
refund of $89,000 and $21,000 for the quarters ended December 31, 2017 and 2016,
respectively.
On December 22, 2017, U.S. Federal
tax reform was enacted with the signing of the Tax Cuts and Jobs
Act, or the TCJA. Notable provisions of the TCJA include
significant changes to corporate taxation, including reduction of
the corporate tax rate from a top marginal rate of 35% to a flat
rate of 21%, limitation of the tax deduction for interest expense
to 30% of adjusted earnings (except for certain small businesses),
limitation of the deduction for net operating losses to 80% of
current year taxable income and elimination of net operating loss
carrybacks, immediate deductions for certain new investments
instead of deductions for depreciation expense over time, and
modifying or repealing many business deductions and credits.
The SEC issued a Staff Accounting Bulletin No. 118 ("SAB 118"),
which allows a provisional estimate when a registrant does not have
the necessary information available, prepared, or analyzed in
reasonable detail to complete the accounting for certain income tax
effects of the Act. SAB 118 allows for adjustments to provisional
amounts during a measurement period of up to one year. In
accordance with SAB 118, the Company has made reasonable estimates
related to the remeasurement of deferred tax balances and other
deferred tax adjustments based on provisions of the Act.
The Company is continuing to evaluate how the provisions of the Act
will be accounted for under ASC 740, "Income Taxes". The analysis
is provisional and is subject to change due to the additional time
required to accurately calculate and review the complex tax law.
The Company will assess any regulatory guidance that may be issued
which could have an impact on the provisional estimates. The
Company will continue to gather information and perform additional
analysis on these estimates, including, but not limited to,
remeasurement of deferred taxes and other deferred tax adjustments
until the filing of its associated federal and state income tax
returns. Any measurement period adjustments will be reported as a
component of provision for incomes taxes in the reporting period
the amounts are determined.
Other income, net increased to approximately $1.9 million for the quarter ended December 31, 2017, compared to $852,000 for the same period in 2016. The primary
driver of the increase in other income was from our investment in
MGM.
Other pertinent financial information includes capital
expenditures of approximately $2.9
million and $1.1 million for
the quarters ended December 31, 2017
and 2016, respectively.
During the quarter ended December 31,
2017, the Company did not repurchase any Class A common
stock and repurchased 312,409 shares of Class D common stock in the
amount of $597,000. There were
no stock repurchases made during the quarter ended December 31, 2016. During the year ended
December 31, 2017, the Company did
not repurchase any Class A common stock and repurchased 2,039,065
shares of Class D common stock in the amount of approximately
$4.0 million. During the year
ended December 31, 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 year ended December 31, 2017, the Company repurchased
369,133 shares of Class D Common Stock, to satisfy employee tax
obligations, in the amount of approximately $1.0 million. During the year ended December 31, 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 quarter ended December 31, 2017, the Company repurchased 8,961
shares of Class D common stock, to satisfy employee tax
obligations, in the amount of $19,000
and during the quarter ended December 31,
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 months and year ended
December 31, 2016 has been
reclassified to conform to the current period presentation. These
reclassifications occurred among all segments. The Company
previously presented the reclassified fourth quarter 2016 results
and results for the year ended December 31,
2016 in the press release dated August 2, 2017.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three months and year ended
December 31, 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
December 31, 2017
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
109,036
|
$
|
43,634
|
$
|
9,847
|
$
|
10,401
|
$
|
45,182
|
$
|
(28)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
30,619
|
|
9,516
|
|
5,530
|
|
3,177
|
|
12,417
|
|
(21)
|
|
Selling, general and
administrative
|
|
34,096
|
|
18,571
|
|
1,322
|
|
6,037
|
|
8,192
|
|
(26)
|
|
Corporate selling,
general and administrative
|
|
12,525
|
|
-
|
|
569
|
|
-
|
|
1,854
|
|
10,102
|
|
Stock-based
compensation
|
|
2,701
|
|
345
|
|
38
|
|
-
|
|
5
|
|
2,313
|
|
Depreciation and
amortization
|
|
8,468
|
|
942
|
|
56
|
|
537
|
|
6,567
|
|
366
|
|
Total operating
expenses
|
|
88,409
|
|
29,374
|
|
7,515
|
|
9,751
|
|
29,035
|
|
12,734
|
|
Operating income (loss)
|
|
20,627
|
|
14,260
|
|
2,332
|
|
650
|
|
16,147
|
|
(12,762)
|
|
INTEREST
INCOME
|
|
40
|
|
-
|
|
-
|
|
-
|
|
(5)
|
|
45
|
|
INTEREST
EXPENSE
|
|
19,273
|
|
356
|
|
-
|
|
-
|
|
1,918
|
|
16,999
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
(1,174)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,174)
|
|
OTHER INCOME,
net
|
|
(1,863)
|
|
(219)
|
|
-
|
|
-
|
|
-
|
|
(1,644)
|
|
Income
(loss) before (benefit from) provision for income taxes
and
noncontrolling
interest in income of subsidiaries
|
|
4,431
|
|
14,123
|
|
2,332
|
|
650
|
|
14,224
|
|
(26,898)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(117,196)
|
|
9,129
|
|
917
|
|
(35)
|
|
5,271
|
|
(132,478)
|
|
CONSOLIDATED NET
INCOME
|
|
121,627
|
|
4,994
|
|
1,415
|
|
685
|
|
8,953
|
|
105,580
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
343
|
|
-
|
|
-
|
|
-
|
|
-
|
|
343
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
121,284
|
$
|
4,994
|
$
|
1,415
|
$
|
685
|
$
|
8,953
|
$
|
105,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
38,744
|
$
|
15,669
|
$
|
2,439
|
$
|
1,134
|
$
|
23,351
|
$
|
(3,849)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2016
|
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
113,556
|
$
|
47,173
|
$
|
11,255
|
$
|
7,268
|
$
|
47,969
|
$
|
(109)
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
37,211
|
|
8,925
|
|
5,249
|
|
2,363
|
|
20,674
|
|
-
|
|
|
Selling, general and
administrative
|
|
33,252
|
|
18,947
|
|
2,117
|
|
5,121
|
|
7,177
|
|
(110)
|
|
|
Corporate selling,
general and administrative
|
|
15,107
|
|
-
|
|
1,162
|
|
19
|
|
2,445
|
|
11,481
|
|
|
Stock-based
compensation
|
|
1,091
|
|
116
|
|
17
|
|
(4)
|
|
-
|
|
962
|
|
|
Depreciation and
amortization
|
|
8,524
|
|
1,093
|
|
62
|
|
395
|
|
6,560
|
|
414
|
|
|
Impairment of
long-lived assets
|
|
1,287
|
|
1,287
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Total operating
expenses
|
|
96,472
|
|
30,368
|
|
8,607
|
|
7,894
|
|
36,856
|
|
12,747
|
|
|
Operating income (loss)
|
|
17,084
|
|
16,805
|
|
2,648
|
|
(626)
|
|
11,113
|
|
(12,856)
|
|
|
INTEREST
INCOME
|
|
40
|
|
-
|
|
-
|
|
-
|
|
-
|
|
40
|
|
|
INTEREST
EXPENSE
|
|
20,148
|
|
330
|
|
-
|
|
-
|
|
1,919
|
|
17,899
|
|
|
OTHER INCOME,
net
|
|
(852)
|
|
(379)
|
|
-
|
|
-
|
|
-
|
|
(473)
|
|
|
(Loss)
income before provision for (benefit from) income taxes
and
noncontrolling
interest in income of subsidiaries
|
|
(2,172)
|
|
16,854
|
|
2,648
|
|
(626)
|
|
9,194
|
|
(30,242)
|
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
1,315
|
|
(2,264)
|
|
3,206
|
|
27
|
|
16,300
|
|
(15,954)
|
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(3,487)
|
|
19,118
|
|
(558)
|
|
(653)
|
|
(7,106)
|
|
(14,288)
|
|
|
NET LOSS ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
|
|
(120)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(120)
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(3,367)
|
$
|
19,118
|
$
|
(558)
|
$
|
(653)
|
$
|
(7,106)
|
$
|
(14,168)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
30,857
|
$
|
19,485
|
$
|
2,727
|
$
|
(216)
|
$
|
17,901
|
$
|
(9,040)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2017
|
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
440,041
|
$
|
176,716
|
$
|
45,529
|
$
|
30,754
|
$
|
187,480
|
$
|
(438)
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
130,417
|
|
35,574
|
|
21,797
|
|
12,686
|
|
60,430
|
|
(70)
|
|
|
Selling, general and
administrative
|
|
147,923
|
|
75,645
|
|
16,228
|
|
19,564
|
|
36,813
|
|
(327)
|
|
|
Corporate selling,
general and administrative
|
|
41,171
|
|
-
|
|
3,183
|
|
4
|
|
7,350
|
|
30,634
|
|
|
Stock-based
compensation
|
|
4,647
|
|
594
|
|
43
|
|
-
|
|
209
|
|
3,801
|
|
|
Depreciation and
amortization
|
|
34,016
|
|
3,761
|
|
214
|
|
2,153
|
|
26,263
|
|
1,625
|
|
|
Impairment of
long-lived assets
|
|
29,148
|
|
29,148
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Total operating
expenses
|
|
387,322
|
|
144,722
|
|
41,465
|
|
34,407
|
|
131,065
|
|
35,663
|
|
|
Operating income (loss)
|
|
52,719
|
|
31,994
|
|
4,064
|
|
(3,653)
|
|
56,415
|
|
(36,101)
|
|
|
INTEREST
INCOME
|
|
200
|
|
-
|
|
-
|
|
-
|
|
(5)
|
|
205
|
|
|
INTEREST
EXPENSE
|
|
79,420
|
|
1,438
|
|
-
|
|
-
|
|
7,675
|
|
70,307
|
|
|
GAIN ON
SALE-LEASEBACK
|
|
(14,411)
|
|
(14,411)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
LOSS ON RETIREMENT OF
DEBT
|
|
5,219
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,219
|
|
|
OTHER INCOME,
net
|
|
(6,608)
|
|
(605)
|
|
-
|
|
-
|
|
-
|
|
(6,003)
|
|
|
(Loss)
income before (benefit from) provision for income taxes
and
noncontrolling
interest in income of subsidiaries
|
|
(10,701)
|
|
45,572
|
|
4,064
|
|
(3,653)
|
|
48,735
|
|
(105,419)
|
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(123,163)
|
|
21,420
|
|
1,567
|
|
45
|
|
18,373
|
|
(164,568)
|
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
112,462
|
|
24,152
|
|
2,497
|
|
(3,698)
|
|
30,362
|
|
59,149
|
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
575
|
|
-
|
|
-
|
|
-
|
|
-
|
|
575
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
111,887
|
$
|
24,152
|
$
|
2,497
|
$
|
(3,698)
|
$
|
30,362
|
$
|
58,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
137,098
|
$
|
66,208
|
$
|
4,549
|
$
|
(1,507)
|
$
|
83,862
|
$
|
(16,014)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2016
|
|
|
|
|
|
|
(in thousands,
unaudited, as reclassified5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
456,219
|
$
|
186,144
|
$
|
52,310
|
$
|
26,231
|
$
|
191,806
|
$
|
(272)
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
134,000
|
|
34,096
|
|
21,486
|
|
9,121
|
|
69,297
|
|
-
|
|
|
Selling, general and
administrative
|
|
147,599
|
|
75,711
|
|
18,127
|
|
17,459
|
|
36,575
|
|
(273)
|
|
|
Corporate selling,
general and administrative
|
|
47,532
|
|
-
|
|
3,653
|
|
(6)
|
|
10,040
|
|
33,845
|
|
|
Stock-based
compensation
|
|
3,410
|
|
304
|
|
48
|
|
2
|
|
-
|
|
3,056
|
|
|
Depreciation and
amortization
|
|
34,247
|
|
4,349
|
|
210
|
|
1,694
|
|
26,224
|
|
1,770
|
|
|
Impairment of
long-lived assets
|
|
1,287
|
|
1,287
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Total operating
expenses
|
|
368,075
|
|
115,747
|
|
43,524
|
|
28,270
|
|
142,136
|
|
38,398
|
|
|
Operating income (loss)
|
|
88,144
|
|
70,397
|
|
8,786
|
|
(2,039)
|
|
49,670
|
|
(38,670)
|
|
|
INTEREST
INCOME
|
|
214
|
|
-
|
|
-
|
|
-
|
|
-
|
|
214
|
|
|
INTEREST
EXPENSE
|
|
81,636
|
|
1,331
|
|
-
|
|
-
|
|
7,675
|
|
72,630
|
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
(2,646)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,646)
|
|
|
OTHER INCOME,
net
|
|
(928)
|
|
(401)
|
|
-
|
|
-
|
|
-
|
|
(527)
|
|
|
Income
(loss) before provision for (benefit from) income taxes
and
noncontrolling
interest in income of subsidiaries
|
|
10,296
|
|
69,467
|
|
8,786
|
|
(2,039)
|
|
41,995
|
|
(107,913)
|
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
9,580
|
|
(2,264)
|
|
3,315
|
|
59
|
|
16,368
|
|
(7,898)
|
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
716
|
|
71,731
|
|
5,471
|
|
(2,098)
|
|
25,627
|
|
(100,015)
|
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
1,139
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,139
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(423)
|
$
|
71,731
|
$
|
5,471
|
$
|
(2,098)
|
$
|
25,627
|
$
|
(101,154)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
136,405
|
$
|
77,061
|
$
|
9,106
|
$
|
(316)
|
$
|
76,122
|
$
|
(25,568)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Urban One, Inc. will hold a conference call to discuss its
results for the fiscal year 2017. The conference call is scheduled
for Tuesday, March 06,
2018 at 10:00 a.m. EST. To participate on this call, U.S.
callers may dial toll-free 1-800-230-1059; international callers
may dial direct (+1) 612-288-0329.
A replay of the conference call will be available
from 12:00 p.m. EST March 06, 2018 until 11:59
p.m. EST March 09, 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 444141.
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,
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, 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,
2017 and 2016, Urban One had 46,198,362 and 47,463,258
shares of common stock outstanding on a weighted average basis
(basic), respectively. For the year ended December 31, 2017 and 2016, Urban One had
47,169,682 and 47,924,609 shares of common stock outstanding on a
weighted average basis (basic), respectively.
4
For the three months ended December 31,
2017 and 2016, Urban One had 48,527,664 and 47,463,258
shares of common stock outstanding on a weighted average basis
(fully diluted for outstanding stock options), respectively.
For the year ended December 31, 2017
and 2016, Urban One had 49,632,884 and 47,924,609 shares of common
stock outstanding on a weighted average basis (fully diluted for
outstanding stock options), respectively.
5
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."
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SOURCE Urban One, Inc.