URBAN ONE, INC. REPORTS FIRST QUARTER RESULTS
Urban One reported Q1 2022 results showing net revenue of $112.3 million, a 22.9% increase year-over-year. Operating income rose to $36.5 million, compared to $23.8 million in Q1 2021. The company achieved a net income of $16.4 million or $0.32 per share, up from $7,000 the previous year. Adjusted EBITDA also increased to $42.0 million, a 38.9% growth from Q1 2021. Digital revenues surged by 49.5%, and cable TV advertising rose by 46.9%. The company maintains a cash balance of $166.4 million and reduced net leverage to 4.07x.
- Net revenue increased by 22.9% year-over-year to $112.3 million.
- Operating income grew to $36.5 million, up from $23.8 million.
- Net income reached $16.4 million or $0.32 per share, significantly up from $7,000.
- Adjusted EBITDA rose to $42.0 million, a 38.9% increase from Q1 2021.
- Digital revenues increased by 49.5% and cable TV advertising by 46.9%.
- Cash balance strengthened to $166.4 million with net leverage down to 4.07x.
- None.
WASHINGTON, May 5, 2022 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended March 31, 2022. Net revenue was approximately
Alfred C. Liggins, III, Urban One's CEO and President stated, "We had extremely strong first quarter performance across the platform, with advertising revenues up double-digit percentages in all of our operating segments. Digital revenues were up
RESULTS OF OPERATIONS | |||||
Three Months Ended March 31, | |||||
2022 | 2021 | ||||
STATEMENT OF OPERATIONS | (unaudited) | ||||
(in thousands, except share data) | |||||
NET REVENUE | $ 112,349 | $ 91,440 | |||
OPERATING EXPENSES | |||||
Programming and technical, excluding stock-based compensation | 28,518 | 25,090 | |||
Selling, general and administrative, excluding stock-based compensation | 35,428 | 29,956 | |||
Corporate selling, general and administrative, excluding stock-based compensation | 9,336 | 10,120 | |||
Stock-based compensation | 124 | 253 | |||
Depreciation and amortization | 2,405 | 2,264 | |||
Total operating expenses | 75,811 | 67,683 | |||
Operating income | 36,538 | 23,757 | |||
INTEREST INCOME | 59 | 4 | |||
INTEREST EXPENSE | 15,927 | 18,045 | |||
LOSS ON RETIREMENT OF DEBT | - | 6,949 | |||
OTHER INCOME, net | (1,986) | (1,684) | |||
Income before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries | 22,656 | 451 | |||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 5,586 | (10) | |||
CONSOLIDATED NET INCOME | 17,070 | 461 | |||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 701 | 454 | |||
CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 16,369 | $ 7 | |||
AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS | |||||
CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 16,369 | $ 7 | |||
Weighted average shares outstanding - basic3 | 51,182,831 | 48,463,289 | |||
Weighted average shares outstanding - diluted4 | 55,097,781 | 49,053,650 | |||
Three Months Ended March 31, | |||
2022 | 2021 | ||
PER SHARE DATA - basic and diluted: | (unaudited) | (unaudited) | |
(in thousands, except per share data) | |||
Consolidated net income attributable to common stockholders (basic) | $ 0.32 | $ 0.00 | |
Consolidated net income attributable to common stockholders (diluted) | $ 0.30 | $ 0.00 | |
SELECTED OTHER DATA | |||
Broadcast and digital operating income 1 | $ 48,403 | $ 36,394 | |
Broadcast and digital operating income margin (% of net revenue) | |||
Broadcast and digital operating income reconciliation: | |||
Consolidated net income attributable to common stockholders | $ 16,369 | $ 7 | |
Add back non-broadcast and digital operating income items included in consolidated net income: | |||
Interest income | (59) | (4) | |
Interest expense | 15,927 | 18,045 | |
Provision for (benefit from) income taxes | 5,586 | (10) | |
Corporate selling, general and administrative expenses | 9,336 | 10,120 | |
Stock-based compensation | 124 | 253 | |
Loss on retirement of debt | - | 6,949 | |
Other income, net | (1,986) | (1,684) | |
Depreciation and amortization | 2,405 | 2,264 | |
Noncontrolling interest in income of subsidiaries | 701 | 454 | |
Broadcast and digital operating income | $ 48,403 | $ 36,394 | |
Adjusted EBITDA2 | $ 42,004 | $ 30,237 | |
Adjusted EBITDA reconciliation: | |||
Consolidated net income attributable to common stockholders | $ 16,369 | $ 7 | |
Interest income | (59) | (4) | |
Interest expense | 15,927 | 18,045 | |
Provision for (benefit from) income taxes | 5,586 | (10) | |
Depreciation and amortization | 2,405 | 2,264 | |
EBITDA | $ 40,228 | $ 20,302 | |
Stock-based compensation | 124 | 253 | |
Loss on retirement of debt | - | 6,949 | |
Other income, net | (1,986) | (1,684) | |
Noncontrolling interest in income of subsidiaries | 701 | 454 | |
Casino chase costs | 257 | 1,392 | |
Employment Agreement Award, incentive plan award expenses and other compensation | 579 | 597 | |
Contingent consideration from acquisition | - | 40 | |
Severance-related costs | 133 | 263 | |
Cost method investment income from MGM National Harbor | 1,968 | 1,671 | |
Adjusted EBITDA | $ 42,004 | $ 30,237 | |
March 31, 2022 | December 31, 2021 | |||
(unaudited) | ||||
(in thousands) | ||||
SELECTED BALANCE SHEET DATA: | ||||
Cash and cash equivalents and restricted cash | $ 166,366 | $ 152,218 | ||
Intangible assets, net | 797,257 | 780,133 | ||
Total assets | 1,284,635 | 1,261,108 | ||
Total debt (including current portion, net of issuance costs) | 819,049 | 818,616 | ||
Total liabilities | 996,316 | 989,973 | ||
Total stockholders' equity | 270,564 | 254,120 | ||
Redeemable noncontrolling interest | 17,755 | 17,015 | ||
March 31, 2022 | Applicable Interest Rate | |||
(in thousands) | ||||
SELECTED LEVERAGE DATA: | ||||
$ 811,544 | ||||
PPP Loan | 7,505 | |||
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 could see 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 a variety of significant advertising categories reduced advertising spend due to the pandemic. This has been 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 pandemic has caused a shift in the way people work and commute, which in some instances has altered demand for our broadcasting radio advertising. Finally, the COVID-19 outbreak caused the postponement or cancellation of certain of our tent pole special events or otherwise impaired or limited ticket sales for such events. 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 and fluctuating 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 has at times been 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 March 31, | |||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||
(Unaudited) | |||||||||||||
(in thousands) | |||||||||||||
Net Revenue: | |||||||||||||
Radio Advertising | $ | 39,127 | $ | 33,340 | $ | 5,787 | |||||||
Political Advertising | 532 | 780 | (248) | - | |||||||||
Digital Advertising | 15,482 | 10,353 | 5,129 | ||||||||||
Cable Television Advertising | 30,414 | 20,702 | 9,712 | ||||||||||
Cable Television Affiliate Fees | 25,970 | 25,486 | 484 | ||||||||||
Event Revenues & Other | 824 | 779 | 45 | ||||||||||
Net Revenue (as reported) | $ | 112,349 | $ | 91,440 | $ | 20,909 | |||||||
Net revenue increased to approximately
Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately
As a result of the continued reopening of the economy and corresponding increases in revenue, we've incurred an increase in the following expenses: increase of
Depreciation and amortization expense increased to approximately
Interest expense decreased to approximately
During the three months ended March 31, 2022, we recorded a provision for income taxes of approximately
Other income, net, was approximately
Other pertinent financial information includes capital expenditures of approximately
During the three months ended March 31, 2022 and 2021, the Company did not repurchase any shares of Class A or Class D common stock.
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 March 31, 2022, the Company executed a Stock Vest Tax Repurchase of 2,649 shares of Class D Common Stock in the amount of
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited statements of operations for the three months ended March 31, 2022 and 2021 are included.
Three Months Ended March 31, 2022 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 112,349 | $ | 31,493 | $ | 10,030 | $ | 15,486 | $ | 56,434 | $ | (1,094) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 28,518 | 8,876 | 3,413 | 3,270 | 13,341 | (382) | |||||||||
Selling, general and administrative | 35,428 | 14,742 | 2,106 | 7,593 | 11,699 | (712) | |||||||||
Corporate selling, general and administrative | 9,336 | - | 677 | 1 | 1,068 | 7,590 | |||||||||
Stock-based compensation | 124 | - | - | - | 39 | 85 | |||||||||
Depreciation and amortization | 2,405 | 815 | 47 | 333 | 946 | 264 | |||||||||
Total operating expenses | 75,811 | 24,433 | 6,243 | 11,197 | 27,093 | 6,845 | |||||||||
Operating income (loss) | 36,538 | 7,060 | 3,787 | 4,289 | 29,341 | (7,939) | |||||||||
INTEREST INCOME | 59 | - | - | - | - | 59 | |||||||||
INTEREST EXPENSE | 15,927 | 49 | - | 79 | 1,919 | 13,880 | |||||||||
OTHER INCOME, net | (1,986) | (5) | - | - | - | (1,981) | |||||||||
Income (loss) before provision for (benefit from) income taxes and | 22,656 | 7,016 | 3,787 | 4,210 | 27,422 | (19,779) | |||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 5,586 | 1,713 | 932 | - | 6,747 | (3,806) | |||||||||
CONSOLIDATED NET INCOME (LOSS) | 17,070 | 5,303 | 2,855 | 4,210 | 20,675 | (15,973) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 701 | - | - | - | - | 701 | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 16,369 | $ | 5,303 | $ | 2,855 | $ | 4,210 | $ | 20,675 | $ | (16,674) | |||
Adjusted EBITDA2 | $ | 42,004 | $ | 7,896 | $ | 3,834 | $ | 4,627 | $ | 30,326 | $ | (4,679) | |||
Three Months Ended March 31, 2021 | ||||||||||||||
(in thousands, unaudited) | ||||||||||||||
Radio | Reach | Cable | Corporate/ | |||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | |||||||||
STATEMENT OF OPERATIONS: | ||||||||||||||
NET REVENUE | $ | 91,440 | $ | 27,788 | $ | 7,816 | $ | 10,355 | $ | 46,241 | $ | (760) | ||
OPERATING EXPENSES: | ||||||||||||||
Programming and technical | 25,090 | 8,492 | 3,409 | 2,813 | 10,735 | (359) | ||||||||
Selling, general and administrative | 29,956 | 14,813 | 1,125 | 5,239 | 9,169 | (390) | ||||||||
Corporate selling, general and administrative | 10,120 | - | 640 | 1 | 1,562 | 7,917 | ||||||||
Stock-based compensation | 253 | 24 | - | - | 55 | 174 | ||||||||
Depreciation and amortization | 2,264 | 729 | 58 | 324 | 929 | 224 | ||||||||
Total operating expenses | 67,683 | 24,058 | 5,232 | 8,377 | 22,450 | 7,566 | ||||||||
Operating income (loss) | 23,757 | 3,730 | 2,584 | 1,978 | 23,791 | (8,326) | ||||||||
INTEREST INCOME | 4 | - | - | - | - | 4 | ||||||||
INTEREST EXPENSE | 18,045 | 44 | - | 79 | 1,919 | 16,003 | ||||||||
LOSS ON RETIREMENT OF DEBT | 6,949 | - | - | - | - | 6,949 | ||||||||
OTHER INCOME, net | (1,684) | - | - | - | - | (1,684) | ||||||||
Income (loss) before (benefit from) provision for income taxes and | 451 | 3,686 | 2,584 | 1,899 | 21,872 | (29,590) | ||||||||
(BENEFIT FROM) PROVISION FOR INCOME TAXES | (10) | 788 | 638 | - | 5,395 | (6,831) | ||||||||
CONSOLIDATED NET INCOME (LOSS) | 461 | 2,898 | 1,946 | 1,899 | 16,477 | (22,759) | ||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 454 | - | - | - | - | 454 | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 7 | $ | 2,898 | $ | 1,946 | $ | 1,899 | $ | 16,477 | $ | (23,213) | ||
Adjusted EBITDA2 | $ | 30,237 | $ | 4,573 | $ | 2,678 | $ | 2,389 | $ | 24,811 | $ | (4,214) | ||
Urban One, Inc. will hold a conference call to discuss its results for the first fiscal quarter of 2022. The conference call is scheduled for Thursday, May 05, 2022 at 10:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free 1-877-226-8215; international callers may dial direct (+1) 409-207-6982. The Access Code is 4339423.
A replay of the conference call will be available from 2:00 p.m. EDT May 05, 2022 until 12:00 a.m. EDT May 09, 2022. 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 7445259.
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 March 31, 2022, we owned and/or operated 64 independently formatted, revenue producing broadcast stations (including 54 FM or AM stations, 8 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.
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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.
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3 For the three months ended March 31, 2022 and 2021, Urban One had 51,182,831 and 48,463,289 shares of common stock outstanding on a weighted average basis (basic), respectively.
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4 For the three months ended March 31, 2022 and 2021, Urban One had 55,097,781 and 49,053,650 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. |
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SOURCE Urban One, Inc.
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