WASHINGTON, Aug. 5, 2021 /PRNewswire/ -- Urban One, Inc.
(NASDAQ: UONEK and UONE) today reported its results for the quarter
ended June 30, 2021. Net revenue was
approximately $107.6 million, an
increase of 41.6% from the same period in 2020. Broadcast and
digital operating income1 was approximately $49.6 million, an increase of 64.3% from the same
period in 2020. The Company reported operating income of
approximately $37.9 million for the
three months ended June 30, 2021,
compared to approximately $20.4
million for the three months ended June 30, 2020. Net income was approximately
$17.9 million or $0.36 per share (basic) compared to approximately
$1.4 million or $0.03 per share (basic) for the same period in
2020. Adjusted EBITDA2 was approximately $44.8 million for the three months ended
June 30, 2021, compared to
approximately $24.5 million for the
same period in 2020.
Alfred C. Liggins, III, Urban
One's CEO and President stated, "Overall we had an extremely strong
second quarter; not only was Adjusted EBITDA up 82.4%
year-over-year, but we also surpassed our Q2 2019 pre-pandemic
Adjusted EBITDA. We are experiencing unprecedented advertiser
interest in our audience across the entire Urban One platform. The
radio advertising business saw a robust rebound from the worst
impacts of the pandemic in Q2 2020, with segment revenues up by
73.0% and radio syndication revenues up 50.2%. We also benefitted
from strong TV scatter markets, with TV advertising revenues up
21.3% in the quarter; furthermore, registered interest in our
2021-22 TV upfront sales presentations has also been extremely
encouraging, which will help our fourth quarter revenue
performance. Demand for our digital products remains high, with
digital revenues up by 147.9% for the quarter and Adjusted EBITDA
up by over $6.0 million; a
significant help to our top and bottom-line growth. For Q3, our
core radio business excluding political is currently pacing up by
over 40%, and we are comfortable increasing our FY21 Adjusted
EBITDA guidance to mid-$130 million,
excluding casino chase costs. During the quarter we completed the
second tranche of our Class A ATM share sale program, which yielded
$21.2 million net of fees. This cash
influx further strengthened our balance sheet, and we ended the
quarter with $129.8 million of cash
on hand, which is a healthy place to be ahead of the exciting new
investment opportunity in the One Casino & Resort in
Richmond, Virginia."
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
(unaudited)
|
|
|
(in thousands, except
share data)
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
107,593
|
|
$
76,008
|
|
$
199,033
|
|
$
170,883
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
26,513
|
|
23,620
|
|
51,603
|
|
51,482
|
|
Selling, general and
administrative, excluding stock-based compensation
|
31,510
|
|
22,216
|
|
61,466
|
|
51,593
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
9,153
|
|
7,140
|
|
19,273
|
|
15,472
|
|
Stock-based
compensation
|
172
|
|
268
|
|
425
|
|
661
|
|
Depreciation and
amortization
|
2,325
|
|
2,382
|
|
4,589
|
|
4,930
|
|
Impairment of
long-lived assets
|
-
|
|
-
|
|
-
|
|
53,650
|
|
Total operating
expenses
|
69,673
|
|
55,626
|
|
137,356
|
|
177,788
|
|
Operating income (loss)
|
37,920
|
|
20,382
|
|
61,677
|
|
(6,905)
|
|
INTEREST
INCOME
|
168
|
|
26
|
|
172
|
|
34
|
|
INTEREST
EXPENSE
|
15,853
|
|
18,395
|
|
33,898
|
|
37,533
|
|
LOSS ON RETIREMENT OF
DEBT
|
-
|
|
-
|
|
6,949
|
|
-
|
|
OTHER INCOME,
net
|
(2,362)
|
|
(94)
|
|
(4,046)
|
|
(1,598)
|
|
Income (loss) before
provision for (benefit from) income taxes and noncontrolling
interest in income of subsidiaries
|
24,597
|
|
2,107
|
|
25,048
|
|
(42,806)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
6,119
|
|
465
|
|
6,109
|
|
(21,390)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
18,478
|
|
1,642
|
|
18,939
|
|
(21,416)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
612
|
|
222
|
|
1,066
|
|
351
|
|
CONSOLIDATED NET
INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
17,866
|
|
$
1,420
|
|
$
17,873
|
|
$
(21,767)
|
|
|
|
|
|
|
|
|
|
|
AMOUNTS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
|
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
17,866
|
|
$
1,420
|
|
$
17,873
|
|
$
(21,767)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic3
|
49,789,892
|
|
44,806,219
|
|
49,124,056
|
|
45,025,471
|
|
Weighted average
shares outstanding - diluted4
|
53,780,918
|
|
48,154,262
|
|
53,186,619
|
|
45,025,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
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)
|
$
0.36
|
|
$
0.03
|
|
$
0.36
|
|
$
(0.48)
|
|
|
|
|
|
|
|
|
Consolidated net income (loss) attributable to common stockholders
(diluted)
|
$
0.33
|
|
$
0.03
|
|
$
0.34
|
|
$
(0.48)
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
Broadcast and digital
operating income 1
|
$
49,570
|
|
$
30,172
|
|
$
85,964
|
|
$
67,808
|
Broadcast and digital
operating income margin (% of net revenue)
|
46.1%
|
|
39.7%
|
|
43.2%
|
|
39.7%
|
|
|
|
|
|
|
|
|
Broadcast and
digital operating income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income (loss) attributable to common
stockholders
|
$
17,866
|
|
$
1,420
|
|
$
17,873
|
|
$
(21,767)
|
Add back non-broadcast and digital operating income items included
in consolidated net income (loss):
|
|
|
|
|
|
|
|
Interest
income
|
(168)
|
|
(26)
|
|
(172)
|
|
(34)
|
Interest
expense
|
15,853
|
|
18,395
|
|
33,898
|
|
37,533
|
Provision for
(benefit from) income taxes
|
6,119
|
|
465
|
|
6,109
|
|
(21,390)
|
Corporate selling,
general and administrative expenses
|
9,153
|
|
7,140
|
|
19,273
|
|
15,472
|
Stock-based
compensation
|
172
|
|
268
|
|
425
|
|
661
|
Loss on retirement of
debt
|
-
|
|
-
|
|
6,949
|
|
-
|
Other income,
net
|
(2,362)
|
|
(94)
|
|
(4,046)
|
|
(1,598)
|
Depreciation and
amortization
|
2,325
|
|
2,382
|
|
4,589
|
|
4,930
|
Noncontrolling
interest in income of subsidiaries
|
612
|
|
222
|
|
1,066
|
|
351
|
Impairment of
long-lived assets
|
-
|
|
-
|
|
-
|
|
53,650
|
Broadcast and digital
operating income
|
$
49,570
|
|
$
30,172
|
|
$
85,964
|
|
$
67,808
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
44,765
|
|
$
24,537
|
|
$
75,002
|
|
$
56,797
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income (loss) attributable to common
stockholders
|
$
17,866
|
|
$
1,420
|
|
$
17,873
|
|
$
(21,767)
|
Interest
income
|
(168)
|
|
(26)
|
|
(172)
|
|
(34)
|
Interest
expense
|
15,853
|
|
18,395
|
|
33,898
|
|
37,533
|
Provision for
(benefit from) income taxes
|
6,119
|
|
465
|
|
6,109
|
|
(21,390)
|
Depreciation and
amortization
|
2,325
|
|
2,382
|
|
4,589
|
|
4,930
|
EBITDA
|
$
41,995
|
|
$
22,636
|
|
$
62,297
|
|
$
(728)
|
Stock-based
compensation
|
172
|
|
268
|
|
425
|
|
661
|
Loss on retirement of
debt
|
-
|
|
-
|
|
6,949
|
|
-
|
Other income,
net
|
(2,362)
|
|
(94)
|
|
(4,046)
|
|
(1,598)
|
Noncontrolling
interest in income of subsidiaries
|
612
|
|
222
|
|
1,066
|
|
351
|
Casino chase
costs
|
941
|
|
-
|
|
2,334
|
|
-
|
Employment Agreement
Award, incentive plan award expenses and other
compensation
|
911
|
|
98
|
|
1,509
|
|
1,311
|
Contingent
consideration from acquisition
|
240
|
|
66
|
|
280
|
|
(7)
|
Severance-related
costs
|
312
|
|
1,261
|
|
573
|
|
1,587
|
Cost method
investment income from MGM National Harbor
|
1,944
|
|
80
|
|
3,615
|
|
1,570
|
Impairment of
long-lived assets
|
-
|
|
-
|
|
-
|
|
53,650
|
Adjusted
EBITDA
|
$
44,765
|
|
$
24,537
|
|
$
75,002
|
|
$
56,797
|
|
|
|
|
|
|
|
|
|
June 30,
2021
|
|
December 31,
2020
|
(unaudited)
|
|
|
|
|
(in
thousands)
|
SELECTED BALANCE
SHEET DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
$
129,780
|
|
$
73,858
|
|
Intangible assets,
net
|
782,946
|
|
764,858
|
|
Total
assets
|
1,239,542
|
|
1,195,487
|
|
Total debt (including
current portion, net of issuance costs)
|
817,774
|
|
842,286
|
|
Total
liabilities
|
987,887
|
|
995,888
|
|
Total stockholders'
equity
|
236,463
|
|
186,898
|
|
Redeemable
noncontrolling interest
|
15,192
|
|
12,701
|
|
|
|
|
|
|
|
June 30,
2021
|
|
Applicable
Interest
Rate
|
|
(in
thousands)
|
|
|
SELECTED LEVERAGE
DATA:
|
|
|
7.375% senior secured
notes due February 2028, net of issuance costs of
approximately $14.7 million (fixed rate)
|
$
810,269
|
|
7.375%
|
|
PPP Loan
|
7,505
|
|
1.00%
|
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements represent management's current expectations and are
based upon information available to Urban One at the time of this
release. These forward-looking statements involve known and unknown
risks, uncertainties and other factors, some of which are beyond
Urban One's control, that may cause the actual results to differ
materially from any future results, performance or achievements
expressed or implied by such forward-looking statements.
Important factors that could cause actual results to differ
materially are described in Urban One's reports on Forms 10-K,
10-Q, 10-Q/A, 8-K and other filings with the Securities and
Exchange Commission (the "SEC"). Urban One does not undertake any
duty to update any forward-looking statements.
The COVID-19 pandemic could have an impact on certain of our
revenue and alternative revenue sources on a going forward
basis. While parts of the country are recovering, other parts
are seeing a resurgence of the pandemic and this could impact our
results of operations, particularly in our larger markets such as
Dallas, Houston and Atlanta. During the early portion of the
pandemic, a number of advertisers across significant advertising
categories reduced advertising spend due to the outbreak. This was
particularly true within our radio segment which derives
substantial revenue from local advertisers, including in areas such
as Texas, Ohio and Georgia. The economies in these areas were hit
particularly hard due to social distancing and other government
interventions. Further, the COVID-19 outbreak caused the
postponement of our 2020 Tom Joyner Foundation Fantastic Voyage
cruise and impaired ticket sales of other tent pole special events,
some of which we had to cancel. A resurgence could have a
similar future impact. We do not carry business interruption
insurance to compensate us for losses and such losses may continue
to occur as a result of the ongoing nature of the COVID-19
pandemic. New outbreaks or surges in new cases due to variants in
the markets in which we operate could have material impacts on our
liquidity, operations including potential impairment of assets, and
our financial results. Likewise, our income from our
investment in MGM National Harbor Casino could be negatively
impacted by closures and limitations on occupancy imposed by state
and local governmental authorities.
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,
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
$
Change
|
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
42,605
|
|
$
|
25,358
|
|
$
|
17,247
|
|
|
68.0%
|
|
Political
Advertising
|
|
|
500
|
|
|
361
|
|
|
139
|
|
|
38.5%
|
|
Digital
Advertising
|
|
|
15,016
|
|
|
6,104
|
|
|
8,912
|
|
|
146.0%
|
|
Cable Television
Advertising
|
|
|
22,968
|
|
|
18,941
|
|
|
4,027
|
|
|
21.3%
|
|
Cable Television
Affiliate Fees
|
|
|
25,396
|
|
|
24,619
|
|
|
777
|
|
|
3.2%
|
|
Event Revenues &
Other
|
|
|
1,108
|
|
|
625
|
|
|
483
|
|
|
77.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
107,593
|
|
$
|
76,008
|
|
$
|
31,585
|
|
|
41.6%
|
|
Net revenue increased to approximately $107.6 million for the quarter ended June 30, 2021, from approximately $76.0 million for the same period in 2020. Net
revenues from our radio broadcasting segment increased 73.0%
compared to the same period in 2020. The increase in net revenue in
our radio broadcasting segment was due primarily to mitigation of
the economic impacts of the COVID-19 pandemic which began in
March 2020. We experienced net
revenue improvements in all of our existing radio markets. Net
revenue excluding political, from our radio broadcasting segment
increased 74.1% compared to the same period in 2020. We recognized
approximately $48.5 million of
revenue from our cable television segment during the three months
ended June 30, 2021, compared to
approximately $43.8 million for the
same period in 2020 with the increase primarily in advertising
sales. We recognized approximately $9.4
million of revenue from our Reach Media segment during the
three months ended June 30, 2021,
compared to approximately $6.3
million for the same period in 2020. Finally, net revenues
for our digital segment increased approximately $9.0 million for the three months ended
June 30, 2021, compared to the same
period in 2020, primarily due to an increase in direct
revenues.
Operating expenses, excluding depreciation and amortization,
stock-based compensation and impairment of long-lived assets,
increased to approximately $67.2
million for the quarter ended June
30, 2021, up 26.8% from the approximately $53.0 million incurred for the comparable quarter
in 2020. The overall operating expense increase was driven by
higher programming and technical expenses, higher selling, general
and administrative expenses and higher corporate selling, general
and administrative expenses.
During the quarter ended June 30,
2020, we proactively implemented certain cost-cutting
measures including furloughs, layoffs, salary reductions, other
expense reduction (including eliminating travel and entertainment
expenses), eliminating merit raises, decreasing or deferring
marketing spend, deferring programming/production costs, reducing
special events costs, and implementing a hiring freeze on open
positions. As a result of the continued reopening of the economy
and corresponding increases in revenue, we've incurred an increase
in the following expenses: approximately $3.4 million in employee compensation expenses,
$1.3 million in higher program
content amortization expense at our cable television segment,
$4.8 million in marketing spend, and
$2.3 million in variable expenses.
Finally, the increase in corporate selling, general and
administrative expenses for the three months ended June 30, 2021, compared to the same period in
2020 is primarily due to an increase in expenses related to
corporate development activities in connection with potential
gaming and other similar business activities as well as an increase
in compensation expense for the Chief Executive Officer in
connection with the valuation of the Employment Agreement Award
element.
Depreciation and amortization expense decreased to approximately
$2.3 million for the quarter ended
June 30, 2021, compared to
approximately $2.4 million for the
quarter ended June 30, 2020.
Interest expense decreased to approximately $15.9 million for the quarter ended June 30, 2021, compared to approximately
$18.4 million for the quarter ended
June 30, 2020. The Company made cash
interest payments of $172,000 for the
quarter ended June 30, 2021, compared
to cash interest payments of approximately $22.4 million on its outstanding debt for the
quarter ended June 30, 2020. As
previously announced, on January 25,
2021, the Company closed on new senior secured notes (the
"2028 Notes"). The proceeds from the 2028 Notes were used to prepay
in full (1) the 2017 Credit Facility, (2) the 2018 Credit
Facility, (3) the MGM National Harbor Loan; (4) the
remaining amounts of our 7.375% Notes, and (5) our 8.75% Notes
that were issued in the November 2020 Exchange
Offer.
During the three months ended June 30,
2021, we recorded a provision for income taxes of
approximately $6.1 million compared
to a provision for income taxes of $465,000 for the three months ended June 30, 2020. The increase in the provision for
income taxes was primarily due to the application of the estimated
annual effective tax rate for the year to date and pre-tax income
of approximately $24.6 million during
the quarter, and discrete tax provision adjustments for excess tax
benefits related to restricted stock units. The tax provision
resulted in an effective tax rate of 24.9% and 22.1% for the three
months ended June 30, 2021 and 2020,
respectively. The Company paid income taxes of $814,000 for the quarter ended June 30, 2021 and did not pay income taxes for
the quarter ended June 30, 2020.
Other income, net, was approximately $2.4
million and $94,000 for the
three months ended June 30, 2021 and
2020, respectively. We recognized other income in the amount of
approximately $1.9 million and
$80,000, for the three months ended
June 30, 2021 and 2020, respectively,
related to our 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, 2021 compared to the three months ended
June 30, 2020.
Other pertinent financial information includes capital
expenditures of approximately $1.6
million and $1.2 million for
the quarters ended June 30, 2021 and
2020, respectively.
During the three months ended June 30,
2021, the Company did not repurchase any shares of Class A
or Class D common stock. During the three months ended June 30, 2020, the Company did not repurchase any
shares of Class A common stock and repurchased 3,208,288 shares of
Class D common stock in the amount of approximately $2.4 million.
The Company, in connection with its prior 2009 stock option and
restricted stock plan and its current 2019 Equity and Performance
Incentive Plan (the "2019 Plan"), is authorized to purchase shares
of Class D common stock to satisfy employee tax obligations in
connection with the vesting of share grants under the plan. During
the three months ended June 30, 2021,
the Company executed a Stock Vest Tax Repurchase of 14,051 shares
of Class D Common Stock in the amount of $33,000. During the three months ended
June 30, 2020, the Company executed a
Stock Vest Tax Repurchase of 155,771 shares of Class D Common Stock
in the amount of $140,000.
Other Matters
During the three months ended June 30, 2021, the Company
issued and sold an aggregate of 1,893,126 Class A Shares
pursuant to the 2021 Sale Agreement and received gross proceeds of
approximately $22.0 million and net
proceeds of approximately $21.2
million, after deducting commissions to Jefferies and other
offering expenses.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three and six months ended
June 30, 2021 and 2020 are
included.
|
|
|
|
|
Three Months Ended
June 30, 2021
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
107,593
|
$
|
35,465
|
$
|
9,414
|
$
|
15,129
|
$
|
48,461
|
$
|
(876)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
26,513
|
|
8,608
|
|
3,388
|
|
2,414
|
|
12,461
|
|
(358)
|
|
Selling, general and
administrative
|
|
31,510
|
|
13,757
|
|
2,001
|
|
6,385
|
|
9,886
|
|
(519)
|
|
Corporate selling,
general and administrative
|
|
9,153
|
|
-
|
|
613
|
|
1
|
|
1,187
|
|
7,352
|
|
Stock-based
compensation
|
|
172
|
|
4
|
|
-
|
|
-
|
|
16
|
|
152
|
|
Depreciation and
amortization
|
|
2,325
|
|
792
|
|
53
|
|
315
|
|
937
|
|
228
|
|
Total operating
expenses
|
|
69,673
|
|
23,161
|
|
6,055
|
|
9,115
|
|
24,487
|
|
6,855
|
|
Operating income (loss)
|
|
37,920
|
|
12,304
|
|
3,359
|
|
6,014
|
|
23,974
|
|
(7,731)
|
|
INTEREST
INCOME
|
|
168
|
|
-
|
|
-
|
|
-
|
|
-
|
|
168
|
|
INTEREST
EXPENSE
|
|
15,853
|
|
43
|
|
-
|
|
79
|
|
1,919
|
|
13,812
|
|
OTHER INCOME,
net
|
|
(2,362)
|
|
(406)
|
|
-
|
|
-
|
|
-
|
|
(1,956)
|
|
Income (loss) before
provision for (benefit from) income taxes and noncontrolling
interest in income of subsidiaries
|
|
24,597
|
|
12,667
|
|
3,359
|
|
5,935
|
|
22,055
|
|
(19,419)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
6,119
|
|
2,923
|
|
846
|
|
-
|
|
5,568
|
|
(3,218)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
18,478
|
|
9,744
|
|
2,513
|
|
5,935
|
|
16,487
|
|
(16,201)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
612
|
|
-
|
|
-
|
|
-
|
|
-
|
|
612
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
17,866
|
$
|
9,744
|
$
|
2,513
|
$
|
5,935
|
$
|
16,487
|
$
|
(16,813)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
44,765
|
$
|
13,200
|
$
|
3,462
|
$
|
6,573
|
$
|
25,003
|
$
|
(3,473)
|
|
|
|
|
|
Three Months Ended
June 30, 2020
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
76,008
|
$
|
20,505
|
$
|
6,268
|
$
|
6,104
|
$
|
43,761
|
$
|
(630)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
23,620
|
|
7,597
|
|
2,968
|
|
2,442
|
|
10,994
|
|
(381)
|
|
Selling, general and
administrative
|
|
22,216
|
|
12,985
|
|
1,303
|
|
3,262
|
|
4,900
|
|
(234)
|
|
Corporate selling,
general and administrative
|
|
7,140
|
|
-
|
|
620
|
|
19
|
|
1,059
|
|
5,442
|
|
Stock-based
compensation
|
|
268
|
|
32
|
|
50
|
|
-
|
|
-
|
|
186
|
|
Depreciation and
amortization
|
|
2,382
|
|
766
|
|
60
|
|
277
|
|
940
|
|
339
|
|
Total operating
expenses
|
|
55,626
|
|
21,380
|
|
5,001
|
|
6,000
|
|
17,893
|
|
5,352
|
|
Operating income (loss)
|
|
20,382
|
|
(875)
|
|
1,267
|
|
104
|
|
25,868
|
|
(5,982)
|
|
INTEREST
INCOME
|
|
26
|
|
-
|
|
-
|
|
-
|
|
-
|
|
26
|
|
INTEREST
EXPENSE
|
|
18,395
|
|
-
|
|
-
|
|
79
|
|
1,919
|
|
16,397
|
|
OTHER INCOME,
net
|
|
(94)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(94)
|
|
Income (loss) before
provision for (benefit from) income taxes and noncontrolling
interest in income of subsidiaries
|
|
2,107
|
|
(875)
|
|
1,267
|
|
25
|
|
23,949
|
|
(22,259)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
465
|
|
(23)
|
|
391
|
|
-
|
|
5,985
|
|
(5,888)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
1,642
|
|
(852)
|
|
876
|
|
25
|
|
17,964
|
|
(16,371)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
222
|
|
-
|
|
-
|
|
-
|
|
-
|
|
222
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
1,420
|
$
|
(852)
|
$
|
876
|
$
|
25
|
$
|
17,964
|
$
|
(16,593)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
24,537
|
$
|
813
|
$
|
1,577
|
$
|
519
|
$
|
26,871
|
$
|
(5,243)
|
|
|
|
|
|
Six Months Ended June
30, 2021
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
199,033
|
$
|
63,253
|
$
|
17,230
|
$
|
25,484
|
$
|
94,703
|
$
|
(1,637)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
51,603
|
|
17,101
|
|
6,797
|
|
5,226
|
|
23,196
|
|
(717)
|
|
Selling, general and
administrative
|
|
61,466
|
|
28,569
|
|
3,126
|
|
11,625
|
|
19,054
|
|
(908)
|
|
Corporate selling,
general and administrative
|
|
19,273
|
|
-
|
|
1,253
|
|
2
|
|
2,750
|
|
15,268
|
|
Stock-based
compensation
|
|
425
|
|
28
|
|
-
|
|
-
|
|
71
|
|
326
|
|
Depreciation and
amortization
|
|
4,589
|
|
1,522
|
|
111
|
|
638
|
|
1,866
|
|
452
|
|
Total operating
expenses
|
|
137,356
|
|
47,220
|
|
11,287
|
|
17,491
|
|
46,937
|
|
14,421
|
|
Operating income (loss)
|
|
61,677
|
|
16,033
|
|
5,943
|
|
7,993
|
|
47,766
|
|
(16,058)
|
|
INTEREST
INCOME
|
|
172
|
|
-
|
|
-
|
|
-
|
|
-
|
|
172
|
|
INTEREST
EXPENSE
|
|
33,898
|
|
87
|
|
-
|
|
158
|
|
3,838
|
|
29,815
|
|
LOSS ON RETIREMENT OF
DEBT
|
|
6,949
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,949
|
|
OTHER INCOME,
net
|
|
(4,046)
|
|
(406)
|
|
-
|
|
-
|
|
-
|
|
(3,640)
|
|
Income (loss) before
provision for (benefit from) income taxes and noncontrolling
interest in income of subsidiaries
|
|
25,048
|
|
16,352
|
|
5,943
|
|
7,835
|
|
43,928
|
|
(49,010)
|
|
PROVISION FOR
(BENEFIT FROM) INCOME TAXES
|
|
6,109
|
|
3,711
|
|
1,483
|
|
-
|
|
10,964
|
|
(10,049)
|
|
CONSOLIDATED NET
INCOME (LOSS)
|
|
18,939
|
|
12,641
|
|
4,460
|
|
7,835
|
|
32,964
|
|
(38,961)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
1,066
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,066
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
17,873
|
$
|
12,641
|
$
|
4,460
|
$
|
7,835
|
$
|
32,964
|
$
|
(40,027)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
75,002
|
$
|
17,774
|
$
|
6,140
|
$
|
8,962
|
$
|
49,815
|
$
|
(7,689)
|
|
|
|
|
|
Six Months Ended June
30, 2020
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUE
|
$
|
170,883
|
$
|
55,421
|
$
|
12,958
|
$
|
12,393
|
$
|
91,257
|
$
|
(1,146)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
51,482
|
|
17,478
|
|
6,385
|
|
5,562
|
|
22,820
|
|
(763)
|
|
Selling, general and
administrative
|
|
51,593
|
|
29,418
|
|
3,054
|
|
7,331
|
|
12,151
|
|
(361)
|
|
Corporate selling,
general and administrative
|
|
15,472
|
|
-
|
|
1,338
|
|
19
|
|
2,381
|
|
11,734
|
|
Stock-based
compensation
|
|
661
|
|
110
|
|
59
|
|
6
|
|
-
|
|
486
|
|
Depreciation and
amortization
|
|
4,930
|
|
1,506
|
|
119
|
|
765
|
|
1,883
|
|
657
|
|
Impairment of
long-lived assets
|
|
53,650
|
|
53,650
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
177,788
|
|
102,162
|
|
10,955
|
|
13,683
|
|
39,235
|
|
11,753
|
|
Operating (loss) income
|
|
(6,905)
|
|
(46,741)
|
|
2,003
|
|
(1,290)
|
|
52,022
|
|
(12,899)
|
|
INTEREST
INCOME
|
|
34
|
|
-
|
|
-
|
|
-
|
|
-
|
|
34
|
|
INTEREST
EXPENSE
|
|
37,533
|
|
3
|
|
-
|
|
158
|
|
3,838
|
|
33,534
|
|
OTHER INCOME,
net
|
|
(1,598)
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
(1,597)
|
|
(Loss) income before
(benefit from) provision for income taxes and noncontrolling
interest in income of subsidiaries
|
|
(42,806)
|
|
(46,743)
|
|
2,003
|
|
(1,448)
|
|
48,184
|
|
(44,802)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(21,390)
|
|
(9,872)
|
|
574
|
|
-
|
|
12,040
|
|
(24,132)
|
|
CONSOLIDATED NET
(LOSS) INCOME
|
|
(21,416)
|
|
(36,871)
|
|
1,429
|
|
(1,448)
|
|
36,144
|
|
(20,670)
|
|
NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
|
351
|
|
-
|
|
-
|
|
-
|
|
-
|
|
351
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(21,767)
|
$
|
(36,871)
|
$
|
1,429
|
$
|
(1,448)
|
$
|
36,144
|
$
|
(21,021)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
56,797
|
$
|
9,564
|
$
|
2,380
|
$
|
(291)
|
$
|
53,974
|
$
|
(8,830)
|
Urban One, Inc. will hold a conference call to discuss its
results for the second fiscal quarter of 2021. The conference call
is scheduled for Thursday, August 5,
2021 at 10:00 a.m. EDT. To
participate on this call, U.S. callers may dial toll-free
1-877-226-8163; international callers may dial direct (+1)
234-720-6983. The Access Code is 5284191.
A replay of the conference call will be available from
1:00 p.m. EDT August 5, 2021 until 12:00
a.m. EDT August 08, 2021.
Callers may access the replay by calling 1-866-207-1041;
international callers may dial direct (+1) 402-970-0847. The replay
Access Code is 6180979.
Access to live audio and a replay of the conference call will
also be available on Urban One's corporate website at
www.urban1.com. The replay will be made available on the website
for seven days after the call.
Urban One, Inc. (urban1.com), together with its
subsidiaries, is the largest diversified media company that
primarily targets Black Americans and urban consumers in
the United States. The Company
owns TV One, LLC (tvone.tv), a television network serving
more than 59 million households, offering a broad range of original
programming, classic series and movies designed to entertain,
inform and inspire a diverse audience of adult Black viewers. As of
June 30, 2021, we owned and/or
operated 63 independently formatted, revenue producing broadcast
stations (including 54 FM or AM stations, 7 HD stations, and the 2
low power television stations we operate) branded under the
tradename "Radio One" in 13 urban markets in the United States. Through its controlling
interest in Reach Media, Inc. (blackamericaweb.com), the
Company also operates syndicated programming including the
Rickey Smiley Morning Show, the
Russ Parr Morning Show and the DL
Hughley Show. In addition to its radio and television broadcast
assets, Urban One owns iOne Digital
(ionedigital.com), our wholly owned digital platform
serving the African-American community through social content,
news, information, and entertainment websites, including its
Cassius, Bossip, HipHopWired and MadameNoire digital platforms and
brands. We also have invested in a minority ownership interest in
MGM National Harbor, a gaming resort located in Prince George's County, Maryland. Through our
national multi-media operations, we provide advertisers with a
unique and powerful delivery mechanism to the African-American and
urban audiences.
Notes:
|
|
1
"Broadcast and digital operating income" consists of net (loss)
income before depreciation and amortization, corporate selling,
general and administrative expenses, stock-based compensation,
income taxes, noncontrolling interest in income (loss) of
subsidiaries, interest expense, impairment of long-lived assets,
other (income) expense, loss (gain) on retirement of debt, gain on
sale-leaseback and interest income. Broadcast and digital operating
income is not a measure of financial performance under generally
accepted accounting principles. Nevertheless, broadcast and digital
operating income is a significant measure used by our management to
evaluate the operating performance of our core operating segments
because broadcast and digital operating income provides helpful
information about our results of operations apart from expenses
associated with our fixed assets and long-lived intangible assets,
income taxes, investments, debt financings and retirements,
overhead, stock-based compensation, impairment charges, and asset
sales. Our measure of broadcast and digital operating income is
similar to industry use of station operating income; however, it
reflects our more diverse business and therefore is not completely
analogous to "station operating income" or other similarly titled
measures used by other companies. Broadcast and digital operating
income does not purport to represent operating income or cash flow
from operating activities, as those terms are defined under
generally accepted accounting principles, and should not be
considered as an alternative to those measurements as an indicator
of our performance. A reconciliation of net income (loss) to
broadcast and digital operating income has been provided in this
release.
|
|
2
"Adjusted EBITDA" consists of net income (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, casino chase costs,
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, 2021 and 2020, Urban One had
49,789,892 and 44,806,219 shares of common stock outstanding on a
weighted average basis (basic), respectively. For the six
months ended June 30, 2021 and 2020, Urban One had 49,124,056 and
45,025,471 shares of common stock outstanding on a weighted average
basis (basic), respectively.
|
|
4
For the three months ended June 30, 2021 and 2020, Urban One had
53,780,918 and 48,154,262 shares of common stock outstanding on a
weighted average basis (fully diluted for outstanding stock
awards), respectively. For the six months ended June 30, 2021
and 2020, Urban One had 53,186,619 and 45,025,471 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.