URBAN ONE, INC. REPORTS FOURTH QUARTER RESULTS

Rhea-AI Summary

Urban One, Inc. (NASDAQ: UONEK and UONE) reported solid financial results for Q4 2021, with net revenue of approximately $131 million, a 15.3% increase year-over-year. However, operating income fell to about $22.4 million, down 35% from 2020. The company achieved a net income of $6.6 million, translating to $0.13 per share, a decline from $0.58 per share in the previous year. Adjusted EBITDA reached $32.5 million, down 22%. Digital revenues rose 42.9%, marking annual digital revenue exceeding $50 million for the first time, highlighting robust demand despite increases in operational expenses.

Positive

• Net revenue increased by 15.3% year-over-year to approximately $131 million.
• Digital revenues rose by 42.9%, exceeding $50 million in annual revenue for the first time.
• Core radio pacings for Q1 2022 are projected to increase by low double digits, indicating continued growth.

Negative

• Operating income fell to approximately $22.4 million, down 35% from the same period in 2020.
• Net income decreased significantly to $6.6 million or $0.13 per share, compared to $26.4 million or $0.58 per share in 2020.
• Adjusted EBITDA decreased to approximately $32.5 million, down 22% from the previous year.

WASHINGTON, March 3, 2022 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended December 31, 2021. Net revenue was approximately $131.0 million, an increase of 15.3% from the same period in 2020. The Company reported operating income of approximately $22.4 million for the three months ended December 31, 2021, compared to approximately $34.5 million for the three months ended December 31, 2020. Broadcast and digital operating income¹ was approximately $44.1 million, a decrease of 14.9% from the same period in 2020. Net income was approximately $6.6 million or $0.13 per share (basic) compared to approximately $26.4 million or $0.58 per share (basic) for the same period in 2020. Adjusted EBITDA² was approximately $32.5 million for the three months ended December 31, 2021, compared to approximately $41.7 million for the same period in 2020.

Alfred C. Liggins, III, Urban One's CEO and President stated, "We had another very strong quarter, with revenue exceeding expectations, allowing us to significantly exceed our previous Adjusted EBITDA guidance for the year of $140-$145 million. There was some noise in the expenses, predominantly related to returning events, TV programming amortization and annual staff bonuses, all of which were anticipated and factored into our guidance. Demand for our audience remains extremely robust across the platform, and, excluding political, advertising revenues for the quarter were up double-digit percentages in all of our operating segments. Digital revenues were up 42.9%, and we exceeded $50 million in annual digital revenue for the first time. Cable TV revenues were up 43.6% helped by strong upfront demand and higher average unit rates across both TV One and Cleo. Looking back at pre-pandemic revenues, when we aggregate our radio broadcasting, syndication, events and digital operations, net revenues were up 25% compared to Q4 2019, and Adjusted EBITDA up 21%. We expect to continue to exceed pre-pandemic revenues and Adjusted EBITDA in 2022, and this is supported by first quarter 2022 core radio pacings up low double digits, and up mid-teens including digital revenues."

RESULTS OF OPERATIONS
		Three Months Ended December 31,				Year Ended December 31,
		2021		2020		2021		2020
STATEMENT OF OPERATIONS		(unaudited)				(unaudited)
		(in thousands, except share data)				(in thousands, except share data)
	NET REVENUE	$                           130,966		$                         113,542		$                  441,462		$                        376,337
	OPERATING EXPENSES
	Programming and technical, excluding stock-based compensation	38,243		28,129		119,072		103,813
	Selling, general and administrative, excluding stock-based compensation	48,588		33,524		143,156		108,633
	Corporate selling, general and administrative, excluding stock-based compensation	19,293		12,495		50,837		35,860
	Stock-based compensation	87		839		565		2,294
	Depreciation and amortization	2,364		2,322		9,289		9,741
	Impairment of long-lived assets	-		1,700		-		84,400
	Total operating expenses	108,575		79,009		322,919		344,741
	Operating income	22,391		34,533		118,543		31,596
	INTEREST INCOME	33		1		218		213
	INTEREST EXPENSE	15,908		18,731		65,702		74,507
	LOSS ON RETIREMENT OF DEBT	-		2,894		6,949		2,894
	OTHER INCOME, net	(1,968)		(1,265)		(8,134)		(4,547)
	Income (loss) before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries	8,484		14,174		54,244		(41,045)
	PROVISION FOR (BENEFIT FROM) INCOME TAXES	1,211		(12,950)		13,577		(34,476)
	CONSOLIDATED NET INCOME (LOSS)	7,273		27,124		40,667		(6,569)
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	670		698		2,315		1,544
	CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$                               6,603		$                           26,426		$                    38,352		$                          (8,113)
	AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS
	CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$                               6,603		$                           26,426		$                    38,352		$                          (8,113)
	Weighted average shares outstanding - basic3	51,206,358		45,942,818		50,163,600		45,041,467
	Weighted average shares outstanding - diluted4	55,084,927		48,054,418		54,136,641		45,041,467

 

	Three Months Ended December 31,				Year Ended December 31,
	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)	$                          0.13		$                        0.58		$                      0.76		$                        (0.18)
Consolidated net income (loss) attributable to common stockholders (diluted)	$                          0.12		$                        0.55		$                      0.71		$                        (0.18)
SELECTED OTHER DATA
Broadcast and digital operating income 1	$                      44,135		$                    51,889		$                179,234		$                    163,891
Broadcast and digital operating income margin (% of net revenue)	33.7%		45.7%		40.6%		43.5%
Broadcast and digital operating income reconciliation:
Consolidated net income (loss) attributable to common stockholders	$                        6,603		$                    26,426		$                  38,352		$                      (8,113)
Add back non-broadcast and digital operating income items included in consolidated net income (loss):
Interest income	(33)		(1)		(218)		(213)
Interest expense	15,908		18,731		65,702		74,507
Provision for (benefit from) income taxes	1,211		(12,950)		13,577		(34,476)
Corporate selling, general and administrative expenses	19,293		12,495		50,837		35,860
Stock-based compensation	87		839		565		2,294
Loss on retirement of debt	-		2,894		6,949		2,894
Other income, net	(1,968)		(1,265)		(8,134)		(4,547)
Depreciation and amortization	2,364		2,322		9,289		9,741
Noncontrolling interest in income of subsidiaries	670		698		2,315		1,544
Impairment of long-lived assets	-		1,700		-		84,400
Broadcast and digital operating income	$                      44,135		$                    51,889		$                179,234		$                    163,891
Adjusted EBITDA2	$                      32,487		$                    41,653		$                150,222		$                    138,018
Adjusted EBITDA reconciliation:
Consolidated net income (loss) attributable to common stockholders	$                        6,603		$                    26,426		$                  38,352		$                      (8,113)
Interest income	(33)		(1)		(218)		(213)
Interest expense	15,908		18,731		65,702		74,507
Provision for (benefit from) income taxes	1,211		(12,950)		13,577		(34,476)
Depreciation and amortization	2,364		2,322		9,289		9,741
EBITDA	$                      26,053		$                    34,528		$                126,702		$                      41,446
Stock-based compensation	87		839		565		2,294
Loss on retirement of debt	-		2,894		6,949		2,894
Other income, net	(1,968)		(1,265)		(8,134)		(4,547)
Noncontrolling interest in income of subsidiaries	670		698		2,315		1,544
Casino chase costs	1,886		-		6,727		-
Employment Agreement Award, incentive plan award expenses and other compensation	3,465		(47)		6,163		2,271
Contingent consideration from acquisition	-		48		280		46
Severance-related costs	311		654		965		2,800
Cost method investment income from MGM National Harbor	1,983		1,604		7,690		4,870
Impairment of long-lived assets	-		1,700		-		84,400
Adjusted EBITDA	$                      32,487		$                    41,653		$                150,222		$                    138,018

 

		December 31, 2021		December 31, 2020
		(unaudited)
		(in thousands)
SELECTED BALANCE SHEET DATA:
	Cash and cash equivalents and restricted cash	$                  152,218		$                   73,858
	Intangible assets, net	780,133		764,858
	Total assets	1,261,108		1,195,487
	Total debt (including current portion, net of issuance costs)	818,616		842,286
	Total liabilities	989,973		995,888
	Total stockholders' equity	254,120		186,898
	Redeemable noncontrolling interest	17,015		12,701
		December 31, 2021		Applicable Interest Rate
		(in thousands)
SELECTED LEVERAGE DATA:
	7.375% senior secured notes due February 2028, net of issuance costs of approximately $13.9 million (fixed rate)	$                  811,111		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 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 December 31,
		2021			2020			$ Change				% Change
		(Unaudited)
		(in thousands)
Net Revenue:
Radio Advertising		$	46,211		$	39,154		$	7,057			18.0%
Political Advertising			1,502			15,395			(13,893)			-90.2%
Digital Advertising			19,462			13,618			5,844			42.9%
Cable Television Advertising			28,951			20,156			8,795			43.6%
Cable Television Affiliate Fees			25,620			24,242			1,378			5.7%
Event Revenues & Other			9,220			977			8,243			843.7%
Net Revenue (as reported)		$	130,966		$	113,542		$	17,424			15.3%

Net revenue increased to approximately $131.0 million for the quarter ended December 31, 2021, from approximately $113.5 million for the same period in 2020. Net revenues from our radio broadcasting segment decreased 11.6% compared to the same period in 2020. The decrease in net revenue in our radio broadcasting segment was primarily due to political revenue that did not return in 2021. Net revenue excluding political, from our radio broadcasting segment increased 15.5% compared to the same period in 2020. We recognized approximately $54.6 million of revenue from our cable television segment during the three months ended December 31, 2021, compared to approximately $45.6 million for the same period in 2020 with increases in both advertising and affiliate sales. We recognized approximately $19.3 million of revenue from our Reach Media segment during the three months ended December 31, 2021, compared to approximately $10.3 million for the same period in 2020. The Fantastic Voyage took place during the fourth quarter of 2021 and Reach Media recognized approximately $7.0 million in revenue from operating the event. Finally, net revenues for our digital segment increased approximately $4.7 million for the three months ended December 31, 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 $106.1 million for the quarter ended December 31, 2021, up 43.1% from the approximately $74.1 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 September 30, 2020, we began to reinstate certain cost-cutting measures that were taken during the preliminary phases of the pandemic such as furloughs, layoffs and salary reductions. Continuing throughout 2021, as the economy began to recover, we also reversed certain other expense reduction measures including increasing travel and entertainment expenses, merit raises, marketing spend and programming/production costs, and special event costs. 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 $5.9 million in employee compensation expenses, $5.8 million in higher program content amortization expense at our cable television segment, $7.1 million in special event costs, $1.4 million in marketing spend, $1.7 million in contract labor, talent costs and consulting fees and $4.2 million in variable expenses. Finally, the increase in corporate selling, general and administrative expenses for the three months ended December 31, 2021, compared to the same period in 2020 is primarily due to an increase in compensation expense of approximately $3.5 million related to the employment agreement award and expenses related to corporate development activities in connection with potential gaming and other similar business activities. The Company has incurred approximately $1.9 million in casino chase costs for the quarter ended December 31, 2021.

Depreciation and amortization expense remained flat at approximately $2.3 million for the quarters ended December 31, 2021 and 2020. 

Interest expense decreased to approximately $15.9 million for the quarter ended December 31, 2021, compared to approximately $18.7 million for the quarter ended December 31, 2020. The Company made cash interest payments of $187,000 for the quarter ended December 31, 2021, compared to cash interest payments of approximately $23.4 million on its outstanding debt for the quarter ended December 31, 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. 

For the three months ended December 31, 2021, we recorded a provision for income taxes of approximately $1.2 million on pre-tax income from continuing operations of approximately $8.5 million, which results in a tax rate of 14.3%. For the three months ended December 31, 2020, we recorded a benefit from income taxes of approximately $13.0 million on pre-tax income from continuing operations of approximately $14.2 million, which results in a tax rate of (91.4)%. The Company paid $360,000 in taxes for the quarter ended December 31, 2021, and received a net tax refund of $395,000 for the quarter ended December 31, 2020.

Other income, net, was approximately $2.0 million and $1.3 million for the three months ended December 31, 2021 and 2020, respectively. We recognized other income in the amount of approximately $2.0 million and $1.6 million for the three months ended December 31, 2021 and 2020, respectively, related to our MGM investment.

Other pertinent financial information includes capital expenditures of approximately $2.1 million and $622,000 for the quarters ended December 31, 2021 and 2020, respectively. 

During the three months ended December 31, 2021 and 2020, 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 December 31, 2021, the Company executed a Stock Vest Tax Repurchase of 2,530 shares of Class D Common Stock in the amount of $9,000. During the three months ended December 31, 2020, the Company executed a Stock Vest Tax Repurchase of 4,225 shares of Class D Common Stock in the amount of $5,000.

Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited statements of operations for the three months and year ended December 31, 2021 and 2020 are included.

					Three Months Ended December 31, 2021
					(in thousands, unaudited)
							Radio		Reach				Cable		Corporate/
					Consolidated		Broadcasting		Media		Digital		Television		Eliminations
STATEMENT OF OPERATIONS:
	NET REVENUE			$	130,966	$	38,453	$	19,268	$	19,472	$	54,631	$	(858)
	OPERATING EXPENSES:
	Programming and technical				38,243		9,947		4,733		4,246		19,695		(378)
	Selling, general and administrative				48,588		17,243		9,145		12,003		10,661		(464)
	Corporate selling, general and administrative				19,293		-		1,576		1		2,935		14,781
	Stock-based compensation				87		6		-		-		37		44
	Depreciation and amortization				2,364		800		48		319		939		258
	Total operating expenses				108,575		27,996		15,502		16,569		34,267		14,241
	Operating income (loss)				22,391		10,457		3,766		2,903		20,364		(15,099)
	INTEREST INCOME				33		-		-		-		-		33
	INTEREST EXPENSE				15,908		44		-		79		1,919		13,866
	OTHER (INCOME) EXPENSE, net				(1,968)		28		-		-		-		(1,996)
		Income (loss) before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries			8,484		10,385		3,766		2,824		18,445		(26,936)
	PROVISION FOR (BENEFIT FROM) INCOME TAXES				1,211		5,166		1,026		-		3,415		(8,396)
	CONSOLIDATED NET INCOME (LOSS)				7,273		5,219		2,740		2,824		15,030		(18,540)
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS				670		-		-		-		-		670
	NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS			$	6,603	$	5,219	$	2,740	$	2,824	$	15,030	$	(19,210)
	Adjusted EBITDA2			$	32,487	$	11,506	$	3,816	$	3,222	$	21,340	$	(7,397)

 

						Three Months Ended December 31, 2020
						(in thousands, unaudited)
								Radio		Reach				Cable		Corporate/
						Consolidated		Broadcasting		Media		Digital		Television		Eliminations
	STATEMENT OF OPERATIONS:
		NET REVENUE			$	113,542	$	43,507	$	10,287	$	14,755	$	45,580	$	(587)
		OPERATING EXPENSES:
		Programming and technical				28,129		7,805		3,823		3,154		13,694		(347)
		Selling, general and administrative				33,524		15,770		1,881		6,674		9,420		(221)
		Corporate selling, general and administrative				12,495		-		1,205		1		2,609		8,680
		Stock-based compensation				839		104		-		-		51		684
		Depreciation and amortization				2,322		756		59		344		932		231
		Impairment of long-lived assets				1,700		1,700		-		-		-		-
		Total operating expenses				79,009		26,135		6,968		10,173		26,706		9,027
		Operating income (loss)				34,533		17,372		3,319		4,582		18,874		(9,614)
		INTEREST INCOME				1		-		-		-		-		1
		INTEREST EXPENSE				18,731		29		-		79		1,919		16,704
		LOSS ON RETIREMENT OF DEBT				2,894		-		-		-		-		2,894
		OTHER (INCOME) EXPENSE, net				(1,265)		352		-		-		-		(1,617)
			Income (loss) before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries			14,174		16,991		3,319		4,503		16,955		(27,594)
		(BENEFIT FROM) PROVISION FOR INCOME TAXES				(12,950)		3,375		431		-		(416)		(16,340)
		CONSOLIDATED NET INCOME (LOSS)				27,124		13,616		2,888		4,503		17,371		(11,254)
		NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS				698		-		-		-		-		698
		NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS			$	26,426	$	13,616	$	2,888	$	4,503	$	17,371	$	(11,952)
		Adjusted EBITDA2			$	41,653	$	20,123	$	3,712	$	5,096	$	19,857	$	(7,135)

 

					Year Ended December 31, 2021
					(in thousands, unaudited)
							Radio		Reach				Cable		Corporate/
					Consolidated		Broadcasting		Media		Digital		Television		Eliminations
STATEMENT OF OPERATIONS:
	NET REVENUE			$	441,462	$	140,246	$	46,437	$	59,937	$	198,180	$	(3,338)
	OPERATING EXPENSES:
	Programming and technical				119,072		36,243		14,965		12,307		57,016		(1,459)
	Selling, general and administrative				143,156		61,969		14,491		30,388		38,166		(1,858)
	Corporate selling, general and administrative				50,837		-		3,455		3		7,756		39,623
	Stock-based compensation				565		38		-		-		111		416
	Depreciation and amortization				9,289		3,135		208		1,264		3,738		944
	Total operating expenses				322,919		101,385		33,119		43,962		106,787		37,666
	Operating income (loss)				118,543		38,861		13,318		15,975		91,393		(41,004)
	INTEREST INCOME				218		-		-		-		-		218
	INTEREST EXPENSE				65,702		174		-		316		7,676		57,536
	LOSS ON RETIREMENT OF DEBT				6,949		-		-		-		-		6,949
	OTHER INCOME, net				(8,134)		(392)		-		-		-		(7,742)
		Income (loss) before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries			54,244		39,079		13,318		15,659		83,717		(97,529)
	PROVISION FOR (BENEFIT FROM) INCOME TAXES				13,577		12,665		3,573		-		20,815		(23,476)
	CONSOLIDATED NET INCOME (LOSS)				40,667		26,414		9,745		15,659		62,902		(74,053)
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS				2,315		-		-		-		-		2,315
	NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS			$	38,352	$	26,414	$	9,745	$	15,659	$	62,902	$	(76,368)
	Adjusted EBITDA2			$	150,222	$	42,518	$	13,587	$	17,571	$	95,358	$	(18,812)

 

					Year Ended December 31, 2020
					(in thousands, unaudited)
							Radio		Reach				Cable		Corporate/
					Consolidated		Broadcasting		Media		Digital		Television		Eliminations
STATEMENT OF OPERATIONS:
	NET REVENUE			$	376,337	$	130,573	$	30,996	$	35,599	$	181,583	$	(2,414)
	OPERATING EXPENSES:
	Programming and technical				103,813		33,410		12,967		11,056		47,856		(1,476)
	Selling, general and administrative				108,633		57,325		6,205		18,519		27,443		(859)
	Corporate selling, general and administrative				35,860		-		3,145		27		6,196		26,492
	Stock-based compensation				2,294		317		59		6		51		1,861
	Depreciation and amortization				9,741		3,022		237		1,592		3,749		1,141
	Impairment of long-lived assets				84,400		84,400		-		-		-		-
	Total operating expenses				344,741		178,474		22,613		31,200		85,295		27,159
	Operating income (loss)				31,596		(47,901)		8,383		4,399		96,288		(29,573)
	INTEREST INCOME				213		-		-		-		178		35
	INTEREST EXPENSE				74,507		32		-		317		7,675		66,483
	LOSS ON RETIREMENT OF DEBT				2,894		-		-		-		-		2,894
	OTHER (INCOME) EXPENSE, net				(4,547)		352		-		-		-		(4,899)
		(Loss) income before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries			(41,045)		(48,285)		8,383		4,082		88,791		(94,016)
	(BENEFIT FROM) PROVISION FOR INCOME TAXES				(34,476)		(8,318)		1,752		-		17,555		(45,465)
	CONSOLIDATED NET (LOSS) INCOME				(6,569)		(39,967)		6,631		4,082		71,236		(48,551)
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS				1,544		-		-		-		-		1,544
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS			$	(8,113)	$	(39,967)	$	6,631	$	4,082	$	71,236	$	(50,095)
	Adjusted EBITDA2			$	138,018	$	41,430	$	9,313	$	6,378	$	100,192	$	(19,295)

Urban One, Inc. will hold a conference call to discuss its results for the fourth fiscal quarter of 2021. The conference call is scheduled for Thursday, March 03, 2022 at 10:00 a.m. EST. 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 7494333.

A replay of the conference call will be available from 1:00 p.m. EST March 03, 2022 until 12:00 a.m. EST March 07, 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 2519146.

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 December 31, 2021, 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.

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 December 31, 2021 and 2020, Urban One had 51,206,358 and 45,942,818 shares of common stock outstanding on a weighted average basis (basic), respectively.  For the year ended December 31, 2021 and 2020, Urban One had 50,163,600 and 45,041,467 shares of common stock outstanding on a weighted average basis (basic), respectively.

4              For the three months ended December 31, 2021 and 2020, Urban One had 55,084,927 and 48,054,418 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively.  For the year ended December 31, 2021 and 2020, Urban One had 54,136,641 and 45,041,467 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.

FAQ

What were Urban One's Q4 2021 net revenue figures?

Urban One reported net revenue of approximately $131 million for Q4 2021.

How did Urban One's operating income change in Q4 2021?

Operating income for Q4 2021 was approximately $22.4 million, a decline of 35% year-over-year.

What was Urban One's net income for the fourth quarter of 2021?

The net income for Q4 2021 was approximately $6.6 million or $0.13 per share.

How did Urban One's digital revenue perform in 2021?

Digital revenues increased by 42.9% in 2021, surpassing $50 million in annual revenue.

What is Urban One's outlook for 2022?

Urban One expects to exceed pre-pandemic revenue and Adjusted EBITDA, with strong core radio pacings projected.