Urban One, Inc. Reports Third Quarter Results
Urban One reported Q3 2020 net revenue of $91.9 million, down 17.2% year-over-year. Operating income fell to $4.0 million from $31.1 million in 2019, leading to a net loss of $12.8 million, or $0.29 per share. However, broadcast and digital operating income grew 1.3% to $44.2 million. Adjusted EBITDA increased by 2.3% year-over-year to $39.6 million, buoyed by strong political advertising revenues exceeding $20 million. The company maintained a solid cash position of $102.2 million and reduced debt by $25 million through recent bond exchanges.
- Increased Adjusted EBITDA by 2.3% year-over-year to $39.6 million.
- Strong political advertising revenues over $20 million.
- Maintained cash reserves of approximately $102.2 million.
- Reduced outstanding debt by $25 million.
- Net revenue decreased 17.2% from Q3 2019.
- Operating income fell to $4.0 million from $31.1 million in 2019.
- Reported a net loss of $12.8 million, compared to net income of $5.4 million in 2019.
WASHINGTON, Nov. 12, 2020 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended September 30, 2020. Net revenue was approximately
Alfred C. Liggins, III, Urban One's CEO and President stated, "During the third quarter, we saw continued sequential improvements in radio revenues: compared to Q2 2020, our radio segment revenues were up
RESULTS OF OPERATIONS | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2020 | 2019 | 2020 | 2019 | |||||
STATEMENT OF OPERATIONS | (unaudited) | (unaudited) | ||||||
(in thousands, except share data) | (in thousands, except share data) | |||||||
NET REVENUE | $ 91,912 | $ 111,055 | $ 262,795 | $ 331,075 | ||||
OPERATING EXPENSES | ||||||||
Programming and technical, excluding stock-based compensation | 24,202 | 31,037 | 75,684 | 93,779 | ||||
Selling, general and administrative, excluding stock-based compensation | 23,516 | 36,374 | 75,109 | 115,174 | ||||
Corporate selling, general and administrative, excluding stock-based compensation | 7,893 | 8,053 | 23,365 | 26,245 | ||||
Stock-based compensation | 794 | 1,881 | 1,455 | 2,592 | ||||
Depreciation and amortization | 2,489 | 2,593 | 7,419 | 14,451 | ||||
Impairment of long-lived assets | 29,050 | - | 82,700 | 3,800 | ||||
Total operating expenses | 87,944 | 79,938 | 265,732 | 256,041 | ||||
Operating income (loss) | 3,968 | 31,117 | (2,937) | 75,034 | ||||
INTEREST INCOME | 178 | 45 | 212 | 131 | ||||
INTEREST EXPENSE | 18,243 | 20,239 | 55,776 | 61,647 | ||||
OTHER INCOME, net | (1,684) | (1,299) | (3,282) | (4,669) | ||||
(Loss) income before (benefit from) provision for income taxes | (12,413) | 12,222 | (55,219) | 18,187 | ||||
(BENEFIT FROM) PROVISION FOR INCOME TAXES | (136) | 6,535 | (21,526) | 8,342 | ||||
CONSOLIDATED NET (LOSS) INCOME | (12,277) | 5,687 | (33,693) | 9,845 | ||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 495 | 328 | 846 | 999 | ||||
CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (12,772) | $ 5,359 | $ (34,539) | $ 8,846 | ||||
AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS | ||||||||
CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (12,772) | $ 5,359 | $ (34,539) | $ 8,846 | ||||
Weighted average shares outstanding - basic3 | 44,175,385 | 44,315,077 | 44,738,635 | 44,912,673 | ||||
Weighted average shares outstanding - diluted4 | 44,175,385 | 46,118,702 | 44,738,635 | 46,965,245 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2020 | 2019 | 2020 | 2019 | ||||
PER SHARE DATA - basic and diluted: | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||
(in thousands, except per share data) | (in thousands, except per share data) | ||||||
Consolidated net (loss) income attributable to common stockholders (basic) | $ (0.29) | $ 0.12 | $ (0.77) | $ 0.20 | |||
Consolidated net (loss) income attributable to common stockholders (diluted) | $ (0.29) | $ 0.12 | $ (0.77) | $ 0.19 | |||
SELECTED OTHER DATA | |||||||
Broadcast and digital operating income 1 | $ 44,194 | $ 43,644 | $ 112,002 | $ 122,122 | |||
Broadcast and digital operating income margin (% of net revenue) | |||||||
Broadcast and digital operating income reconciliation: | |||||||
Consolidated net (loss) income attributable to common stockholders | $ (12,772) | $ 5,359 | $ (34,539) | $ 8,846 | |||
Add back non-broadcast and digital operating income items included in consolidated net | |||||||
Interest income | (178) | (45) | (212) | (131) | |||
Interest expense | 18,243 | 20,239 | 55,776 | 61,647 | |||
(Benefit from) provision for income taxes | (136) | 6,535 | (21,526) | 8,342 | |||
Corporate selling, general and administrative expenses | 7,893 | 8,053 | 23,365 | 26,245 | |||
Stock-based compensation | 794 | 1,881 | 1,455 | 2,592 | |||
Other income, net | (1,684) | (1,299) | (3,282) | (4,669) | |||
Depreciation and amortization | 2,489 | 2,593 | 7,419 | 14,451 | |||
Noncontrolling interest in income of subsidiaries | 495 | 328 | 846 | 999 | |||
Impairment of long-lived assets | 29,050 | - | 82,700 | 3,800 | |||
Broadcast and digital operating income | $ 44,194 | $ 43,644 | $ 112,002 | $ 122,122 | |||
Adjusted EBITDA2 | $ 39,568 | $ 38,671 | $ 96,365 | $ 106,017 | |||
Adjusted EBITDA reconciliation: | |||||||
Consolidated net (loss) income attributable to common stockholders | $ (12,772) | $ 5,359 | $ (34,539) | $ 8,846 | |||
Interest income | (178) | (45) | (212) | (131) | |||
Interest expense | 18,243 | 20,239 | 55,776 | 61,647 | |||
(Benefit from) provision for income taxes | (136) | 6,535 | (21,526) | 8,342 | |||
Depreciation and amortization | 2,489 | 2,593 | 7,419 | 14,451 | |||
EBITDA | $ 7,646 | $ 34,681 | $ 6,918 | $ 93,155 | |||
Stock-based compensation | 794 | 1,881 | 1,455 | 2,592 | |||
Other income, net | (1,684) | (1,299) | (3,282) | (4,669) | |||
Noncontrolling interest in income of subsidiaries | 495 | 328 | 846 | 999 | |||
Employment Agreement Award, incentive plan award expenses and other compensation | 1,008 | 860 | 2,318 | 3,576 | |||
Contingent consideration from acquisition | 5 | 53 | (1) | 219 | |||
Severance-related costs | 559 | 358 | 2,145 | 1,178 | |||
Cost method investment income from MGM National Harbor | 1,695 | 1,809 | 3,266 | 5,167 | |||
Impairment of long-lived assets | 29,050 | - | 82,700 | 3,800 | |||
Adjusted EBITDA | $ 39,568 | $ 38,671 | $ 96,365 | $ 106,017 | |||
September 30, 2020 | December 31, 2019 | |||
(unaudited) | ||||
(in thousands) | ||||
SELECTED BALANCE SHEET DATA: | ||||
Cash and cash equivalents and restricted cash | $ 102,696 | $ 33,546 | ||
Intangible assets, net | 795,856 | 881,708 | ||
Total assets | 1,210,537 | 1,249,919 | ||
Total debt (including current portion, net of original issue discount and issuance costs) | 877,125 | 876,253 | ||
Total liabilities | 1,036,995 | 1,056,280 | ||
Total stockholders' equity | 162,425 | 183,075 | ||
Redeemable noncontrolling interest | 11,117 | 10,564 | ||
September 30, 2020 | Applicable Interest Rate | |||
(in thousands) | ||||
SELECTED LEVERAGE DATA: | ||||
2017 Credit Facility, net of original issue discount and issuance costs of approximately | $ 313,923 | |||
348,315 | ||||
2018 Credit Facility, net of original issue discount and issuance costs of approximately | 131,789 | |||
MGM National Harbor Loan, net of original issue discount and issuance costs of approximately | 55,598 | |||
Asset-backed credit facility (subject to variable rates) (a) | 27,500 | |||
(a) | Subject to variable Libor or Prime 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, 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.
Beginning in March 2020, the Company noted that the COVID-19 pandemic and the resulting government stay at home orders across the markets in which we operate were dramatically impacting certain of the Company's revenues. Most notably, a number of advertisers across significant advertising categories have reduced or ceased advertising spend due to the outbreak and stay at home orders which effectively shut many businesses down. This has been particularly true within our radio segment which derives substantial revenue from local advertisers who have been particularly hard hit due to social distancing and government interventions. Further, the COVID-19 outbreak has 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. We do not carry business interruption insurance to compensate us for losses that may occur as a result of any of these interruptions and continued impacts from the COVID-19 outbreak. Continued or future outbreaks and/or the speed at which businesses reopen (or reclose) in the markets in which we operate could have material impacts on our liquidity and/or operations including causing potential impairment of assets and of our financial results.
Net revenue consists of gross revenue, net of local and national agency and outside sales representative commissions. Agency and outside sales representative commissions are calculated based on a stated percentage applied to gross billing.
Three Months Ended September 30, | |||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||
(Unaudited) | |||||||||||||
(in thousands) | |||||||||||||
Net Revenue: | |||||||||||||
Radio Advertising | $ | 34,919 | $ | 50,813 | $ | (15,894) | - | ||||||
Political Advertising | 4,324 | 300 | 4,024 | ||||||||||
Digital Advertising | 8,121 | 8,171 | (50) | - | |||||||||
Cable Television Advertising | 19,603 | 20,649 | (1,046) | - | |||||||||
Cable Television Affiliate Fees | 24,421 | 25,330 | (909) | - | |||||||||
Event Revenues & Other | 524 | 5,792 | (5,268) | - | |||||||||
Net Revenue (as reported) | $ | 91,912 | $ | 111,055 | $ | (19,143) | - | ||||||
Net revenue decreased to approximately
Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, decreased to approximately
During the quarter ended September 30, 2020, we saved approximately
Depreciation and amortization expense decreased to approximately
Interest expense decreased to approximately
The impairment of long-lived assets for the three months ended September 30, 2020, was related to a non-cash impairment charge of approximately
During the three months ended September 30, 2020, the benefit from income taxes was
Other income, net, was approximately
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 September 30, 2020 compared to the three months ended September 30, 2019.
Other pertinent financial information includes capital expenditures of
During the three months ended September 30, 2020, the Company did not repurchase any shares of Class A or Class D common stock. During the three months ended September 30, 2019, the Company repurchased 6,345 shares of Class A common stock in the amount of
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 September 30, 2020, the Company executed a Stock Vest Tax Repurchase of 3,195 shares of Class D Common Stock in the amount of
On August 18, 2020, the Company entered into an Open Market Sales Agreement with Jefferies LLC ("Jefferies") under which the Company may offer and sell, from time to time at its sole discretion, (the "Current ATM Program") shares of its Class A common stock, par value
On October 2, 2020, a private offer to certain eligible noteholders to exchange (the "Exchange Offer") any and all of its outstanding
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited statements of operations for the three and nine months ended September 30, 2020 and 2019 are included.
Three Months Ended September 30, 2020 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 91,912 | $ | 31,645 | $ | 7,751 | $ | 8,451 | $ | 44,746 | $ | (681) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 24,202 | 8,128 | 2,758 | 2,340 | 11,343 | (367) | |||||||||
Selling, general and administrative | 23,516 | 12,137 | 1,271 | 4,514 | 5,870 | (276) | |||||||||
Corporate selling, general and administrative | 7,893 | - | 603 | 6 | 1,207 | 6,077 | |||||||||
Stock-based compensation | 794 | 103 | - | - | - | 691 | |||||||||
Depreciation and amortization | 2,489 | 759 | 59 | 483 | 934 | 254 | |||||||||
Impairment of long-lived assets | 29,050 | 29,050 | - | - | - | - | |||||||||
Total operating expenses | 87,944 | 50,177 | 4,691 | 7,343 | 19,354 | 6,379 | |||||||||
Operating income (loss) | 3,968 | (18,532) | 3,060 | 1,108 | 25,392 | (7,060) | |||||||||
INTEREST INCOME | 178 | - | - | - | 178 | - | |||||||||
INTEREST EXPENSE | 18,243 | - | - | 79 | 1,919 | 16,245 | |||||||||
OTHER INCOME, net | (1,684) | - | - | - | - | (1,684) | |||||||||
(Loss) income before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries | (12,413) | (18,532) | 3,060 | 1,029 | 23,651 | (21,621) | |||||||||
(BENEFIT FROM) PROVISION FOR INCOME TAXES | (136) | (1,820) | 746 | - | 5,931 | (4,993) | |||||||||
CONSOLIDATED NET (LOSS) INCOME | (12,277) | (16,712) | 2,314 | 1,029 | 17,720 | (16,628) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 495 | - | - | - | - | 495 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (12,772) | $ | (16,712) | $ | 2,314 | $ | 1,029 | $ | 17,720 | $ | (17,123) | |||
Adjusted EBITDA2 | $ | 39,568 | $ | 11,743 | $ | 3,221 | $ | 1,574 | $ | 26,360 | $ | (3,330) | |||
Three Months Ended September 30, 2019 | |||||||||||||||||
(in thousands, unaudited) | |||||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||||
NET REVENUE | $ | 111,055 | $ | 46,467 | $ | 10,917 | $ | 8,170 | $ | 45,981 | $ | (480) | |||||
OPERATING EXPENSES: | |||||||||||||||||
Programming and technical | 31,037 | 10,240 | 4,070 | 2,899 | 14,268 | (440) | |||||||||||
Selling, general and administrative | 36,374 | 19,274 | 4,411 | 4,619 | 8,177 | (107) | |||||||||||
Corporate selling, general and administrative | 8,053 | - | 518 | 1 | 1,476 | 6,058 | |||||||||||
Stock-based compensation | 1,881 | 262 | 12 | 11 | - | 1,596 | |||||||||||
Depreciation and amortization | 2,593 | 791 | 60 | 474 | 953 | 315 | |||||||||||
Total operating expenses | 79,938 | 30,567 | 9,071 | 8,004 | 24,874 | 7,422 | |||||||||||
Operating income (loss) | 31,117 | 15,900 | 1,846 | 166 | 21,107 | (7,902) | |||||||||||
INTEREST INCOME | 45 | - | - | - | - | 45 | |||||||||||
INTEREST EXPENSE | 20,239 | 337 | - | - | 1,919 | 17,983 | |||||||||||
OTHER (INCOME) EXPENSE, net | (1,299) | 515 | - | - | - | (1,814) | |||||||||||
Income (loss) before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries | 12,222 | 15,048 | 1,846 | 166 | 19,188 | (24,026) | |||||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 6,535 | 3,869 | 485 | (13) | 4,892 | (2,698) | |||||||||||
CONSOLIDATED NET INCOME (LOSS) | 5,687 | 11,179 | 1,361 | 179 | 14,296 | (21,328) | |||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 328 | - | - | - | - | 328 | |||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 5,359 | $ | 11,179 | $ | 1,361 | $ | 179 | $ | 14,296 | $ | (21,656) | |||||
Adjusted EBITDA2 | $ | 38,671 | $ | 17,116 | $ | 1,918 | $ | 710 | $ | 22,101 | $ | (3,174) | |||||
Nine Months Ended September 30, 2020 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 262,795 | $ | 87,066 | $ | 20,709 | $ | 20,844 | $ | 136,003 | $ | (1,827) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 75,684 | 25,604 | 9,144 | 7,902 | 34,163 | (1,129) | |||||||||
Selling, general and administrative | 75,109 | 41,555 | 4,324 | 11,845 | 18,022 | (637) | |||||||||
Corporate selling, general and administrative | 23,365 | - | 1,941 | 25 | 3,587 | 17,812 | |||||||||
Stock-based compensation | 1,455 | 214 | 59 | 6 | - | 1,176 | |||||||||
Depreciation and amortization | 7,419 | 2,266 | 178 | 1,248 | 2,817 | 910 | |||||||||
Impairment of long-lived assets | 82,700 | 82,700 | - | - | - | - | |||||||||
Total operating expenses | 265,732 | 152,339 | 15,646 | 21,026 | 58,589 | 18,132 | |||||||||
Operating (loss) income | (2,937) | (65,273) | 5,063 | (182) | 77,414 | (19,959) | |||||||||
INTEREST INCOME | 212 | - | - | - | 178 | 34 | |||||||||
INTEREST EXPENSE | 55,776 | 3 | - | 238 | 5,756 | 49,779 | |||||||||
OTHER INCOME, net | (3,282) | (1) | - | - | - | (3,281) | |||||||||
(Loss) income before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries | (55,219) | (65,275) | 5,063 | (420) | 71,836 | (66,423) | |||||||||
(BENEFIT FROM) PROVISION FOR INCOME TAXES | (21,526) | (11,693) | 1,320 | - | 17,972 | (29,125) | |||||||||
CONSOLIDATED NET (LOSS) INCOME | (33,693) | (53,582) | 3,743 | (420) | 53,864 | (37,298) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 846 | - | - | - | - | 846 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (34,539) | $ | (53,582) | $ | 3,743 | $ | (420) | $ | 53,864 | $ | (38,144) | |||
Adjusted EBITDA2 | $ | 96,365 | $ | 21,307 | $ | 5,601 | $ | 1,283 | $ | 80,335 | $ | (12,161) | |||
Nine Months Ended September 30, 2019 | ||||||||||||||||
(in thousands, unaudited) | ||||||||||||||||
Radio | Reach | Cable | Corporate/ | |||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | |||||||||||
STATEMENT OF OPERATIONS: | ||||||||||||||||
NET REVENUE | $ | 331,075 | $ | 132,528 | $ | 36,660 | $ | 23,280 | $ | 140,234 | $ | (1,627) | ||||
OPERATING EXPENSES: | ||||||||||||||||
Programming and technical | 93,779 | 31,131 | 12,150 | 8,438 | 43,417 | (1,357) | ||||||||||
Selling, general and administrative | 115,174 | 57,561 | 16,712 | 13,831 | 27,241 | (171) | ||||||||||
Corporate selling, general and administrative | 26,245 | - | 2,062 | 2 | 4,617 | 19,564 | ||||||||||
Stock-based compensation | 2,592 | 450 | 31 | 39 | 9 | 2,063 | ||||||||||
Depreciation and amortization | 14,451 | 2,510 | 178 | 1,395 | 9,430 | 938 | ||||||||||
Impairment of long-lived assets | 3,800 | 3,800 | - | - | - | - | ||||||||||
Total operating expenses | 256,041 | 95,452 | 31,133 | 23,705 | 84,714 | 21,037 | ||||||||||
Operating income (loss) | 75,034 | 37,076 | 5,527 | (425) | 55,520 | (22,664) | ||||||||||
INTEREST INCOME | 131 | - | - | - | - | 131 | ||||||||||
INTEREST EXPENSE | 61,647 | 1,012 | - | - | 5,757 | 54,878 | ||||||||||
OTHER (INCOME) EXPENSE, net | (4,669) | 517 | - | - | - | (5,186) | ||||||||||
Income (loss) before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries | 18,187 | 35,547 | 5,527 | (425) | 49,763 | (72,225) | ||||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 8,342 | 9,121 | 1,343 | (10) | 12,559 | (14,671) | ||||||||||
CONSOLIDATED NET INCOME (LOSS) | 9,845 | 26,426 | 4,184 | (415) | 37,204 | (57,554) | ||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 999 | - | - | - | - | 999 | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 8,846 | $ | 26,426 | $ | 4,184 | $ | (415) | $ | 37,204 | $ | (58,553) | ||||
Adjusted EBITDA2 | $ | 106,017 | $ | 44,301 | $ | 5,754 | $ | 1,459 | $ | 65,125 | $ | (10,622) | ||||
Urban One, Inc. will hold a conference call to discuss its results for the third fiscal quarter of 2020. The conference call is scheduled for Thursday, November 12, 2020 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-877-226-8152; international callers may dial direct (+1) 234-720-6982. The Access Code is 163684.
A replay of the conference call will be available from 1:00 p.m. EST November 12, 2020 until 12:00 a.m. EST November 15, 2020. 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 8586903.
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 October 2020, Urban One currently owns and/or operates 61 broadcast stations (including all HD stations, translator stations and the low power television stations we operate) branded under the tradename "Radio One" in 14 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 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, 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 September 30, 2020 and 2019, Urban One had 44,175,385 and 44,315,077 shares of common stock outstanding on a weighted average basis (basic), respectively. For the nine months ended September 30, 2020 and 2019, Urban One had 44,738,635 and 44,912,673 shares of common stock outstanding on a weighted average basis (basic), respectively.
4 For the three months ended September 30, 2020 and 2019, Urban One had 44,175,385 and 46,118,702 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the nine months ended September 30, 2020 and 2019, Urban One had 44,738,635 and 46,965,245 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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