Urban One, Inc. Reports Second Quarter Results

Rhea-AI Summary

Urban One, Inc. (UONEK, UONE) reported a 37.5% decline in net revenue for Q2 2020, totaling $76.0 million, compared to the same period in 2019. Broadcast and digital operating income decreased 33.1% to $30.2 million. The company faced a net income of $1.4 million or $0.03 per share, down from $6.6 million or $0.15 per share a year earlier. CEO Alfred C. Liggins, III noted a 51% drop in radio ad revenue and a 96% decline in event revenues due to Covid-19. Liquidity remains strong with $70 million in cash.

Positive

• Liquidity with $70 million cash on hand.
• Performance of TV and digital businesses less impacted, with TV ad revenue down only 4.4%.
• Cost-saving measures implemented.

Negative

• Net revenue decreased 37.5% year-over-year.
• Broadcast and digital operating income fell 33.1%.
• Net income dropped to $1.4 million from $6.6 million.

WASHINGTON, July 30, 2020 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended June 30, 2020. Net revenue was approximately $76.0 million, a decrease of 37.5% from the same period in 2019. Broadcast and digital operating income¹ was approximately $30.2 million, a decrease of 33.1% from the same period in 2019. The Company reported operating income of approximately $20.4 million for the three months ended June 30, 2020, compared to approximately $29.1 million for the same period in 2019. Net income was approximately $1.4 million or $0.03 per share (basic) compared to net income of approximately $6.6 million or $0.15 per share (basic) for the same period in 2019. Adjusted EBITDA² was approximately $24.5 million for the three months ended June 30, 2020, compared to approximately $39.6 million for the same period in 2019.

Alfred C. Liggins, III, Urban One's CEO and President stated, "The economic impact of Covid-19 is fully evident in our second quarter numbers: radio advertising was down 51%, and event revenues were -96% year over year. Our TV and digital businesses fared better, with TV advertising revenue down 4.4% and digital -20%, highlighting the benefits of our diversified media asset base. We had to make tough decisions to reduce costs, and I am proud of how our team, including on-air talent, made sacrifices and worked diligently to keep us operating smoothly through the pandemic. With the issue of racial equality featuring so prominently around the world, it is critical that diverse voices continue to be heard and I thank all our staff and talent for their exceptional work engaging with our audience and clients. The outlook for the rest of 2020 remains uncertain, but I anticipate a similar pattern of strong performance from our TV business offsetting some of the weakness in radio advertising and events. On a same station basis, our Q3 core radio business is currently pacing -41% and we continue to see sequential improvement. Our cost saving measures remain in place, liquidity is strong with $70 million of cash on the balance sheet, and I firmly believe that Urban One will continue to successfully navigate our way through these unprecedented times." 

RESULTS OF OPERATIONS
		Three Months Ended June 30,				Six Months Ended June 30,
		2020		2019		2020		2019
STATEMENT OF OPERATIONS		(unaudited)				(unaudited)
		(in thousands, except share data)				(in thousands, except share data)
	NET REVENUE	$                             76,008		$                         121,571		$                  170,883		$                        220,020
	OPERATING EXPENSES
	Programming and technical, excluding stock-based compensation	23,620		31,225		51,482		62,742
	Selling, general and administrative, excluding stock-based compensation	22,216		45,233		51,593		78,800
	Corporate selling, general and administrative, excluding stock-based compensation	7,140		8,408		15,472		18,192
	Stock-based compensation	268		200		661		711
	Depreciation and amortization	2,382		3,584		4,930		11,858
	Impairment of long-lived assets	-		3,800		53,650		3,800
	Total operating expenses	55,626		92,450		177,788		176,103
	Operating income (loss)	20,382		29,121		(6,905)		43,917
	INTEREST INCOME	26		63		34		86
	INTEREST EXPENSE	18,395		20,578		37,533		41,408
	OTHER INCOME, net	(94)		(1,649)		(1,598)		(3,370)
	Income (loss) before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries	2,107		10,255		(42,806)		5,965
	PROVISION FOR (BENEFIT FROM) INCOME TAXES	465		3,118		(21,390)		1,807
	CONSOLIDATED NET INCOME (LOSS)	1,642		7,137		(21,416)		4,158
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	222		546		351		671
	CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$                               1,420		$                             6,591		$                  (21,767)		$                            3,487
	AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS
	CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS	$                               1,420		$                             6,591		$                  (21,767)		$                            3,487
	Weighted average shares outstanding - basic3	44,806,219		45,061,821		45,025,471		45,175,521
	Weighted average shares outstanding - diluted4	48,154,262		45,701,655		45,025,471		45,984,939

 

	Three Months Ended June 30,				Six Months Ended June 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 income (loss) attributable to common stockholders (basic)	$                          0.03		$                        0.15		$                    (0.48)		$                          0.08
Consolidated net income (loss) attributable to common stockholders (diluted)	$                          0.03		$                        0.14		$                    (0.48)		$                          0.08
SELECTED OTHER DATA
Broadcast and digital operating income 1	$                      30,172		$                    45,113		$                  67,808		$                      78,478
Broadcast and digital operating income margin (% of net revenue)	39.7%		37.1%		39.7%		35.7%
Broadcast and digital operating income reconciliation:
Consolidated net income (loss) attributable to common stockholders	$                        1,420		$                      6,591		$                (21,767)		$                        3,487
Add back non-broadcast and digital operating income items included in consolidated net income (loss):
Interest income	(26)		(63)		(34)		(86)
Interest expense	18,395		20,578		37,533		41,408
Provision for (benefit from) income taxes	465		3,118		(21,390)		1,807
Corporate selling, general and administrative expenses	7,140		8,408		15,472		18,192
Stock-based compensation	268		200		661		711
Other income, net	(94)		(1,649)		(1,598)		(3,370)
Depreciation and amortization	2,382		3,584		4,930		11,858
Noncontrolling interest in income of subsidiaries	222		546		351		671
Impairment of long-lived assets	-		3,800		53,650		3,800
Broadcast and digital operating income	$                      30,172		$                    45,113		$                  67,808		$                      78,478
Adjusted EBITDA2	$                      24,537		$                    39,630		$                  56,797		$                      67,346
Adjusted EBITDA reconciliation:
Consolidated net income (loss) attributable to common stockholders	$                        1,420		$                      6,591		$                (21,767)		$                        3,487
Interest income	(26)		(63)		(34)		(86)
Interest expense	18,395		20,578		37,533		41,408
Provision for (benefit from) income taxes	465		3,118		(21,390)		1,807
Depreciation and amortization	2,382		3,584		4,930		11,858
EBITDA	$                      22,636		$                    33,808		$                     (728)		$                      58,474
Stock-based compensation	268		200		661		711
Other income, net	(94)		(1,649)		(1,598)		(3,370)
Noncontrolling interest in income of subsidiaries	222		546		351		671
Employment Agreement Award, incentive plan award expenses and other compensation	98		806		1,311		2,713
Contingent consideration from acquisition	66		90		(7)		167
Severance-related costs	1,261		401		1,587		822
Cost method investment income from MGM National Harbor	80		1,628		1,570		3,358
Impairment of long-lived assets	-		3,800		53,650		3,800
Adjusted EBITDA	$                      24,537		$                    39,630		$                  56,797		$                      67,346

 

		June 30, 2020		December 31, 2019
		(unaudited)
		(in thousands)
SELECTED BALANCE SHEET DATA:
	Cash and cash equivalents and restricted cash	$                    70,171		$                   33,546
	Intangible assets, net	825,951		881,708
	Total assets	1,209,045		1,249,919
	Total debt (including current portion, net of original issue discount and issuance costs)	888,381		876,253
	Total liabilities	1,038,786		1,056,280
	Total stockholders' equity	159,460		183,075
	Redeemable noncontrolling interest	10,799		10,564
		June 30, 2020		Applicable Interest Rate
		(in thousands)
SELECTED LEVERAGE DATA:
	2017 Credit Facility, net of original issue discount and issuance costs of approximately $4.6 million (subject to variable rates) (a)	$                  314,369		5.00%
	7.375% senior secured notes due April 2022, net of original issue discount and issuance costs of approximately $1.9 million (fixed rate)	348,067		7.375%
	2018 Credit Facility, net of original issue discount and issuance costs of approximately $3.2 million (fixed rate)	143,563		12.875%
	MGM National Harbor Loan, net of original issue discount and issuance costs of approximately $1.9 million (fixed rate)	54,882		11.00%
	Asset-backed credit facility (subject to variable rates) (a)	27,500		1.94%
	(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 and/or caused the postponement of other tent pole special events. 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 June 30,
		2020			2019			$ Change			% Change
		(Unaudited)
		(in thousands)
Net Revenue:
Radio Advertising		$	25,358		$	51,771		$	(26,413)		-51.0%
Political Advertising			361			317			44		13.9%
Digital Advertising			6,104			7,663			(1,559)		-20.3%
Cable Television Advertising			18,941			19,816			(875)		-4.4%
Cable Television Affiliate Fees			24,619			26,599			(1,980)		-7.4%
Event Revenues & Other			625			15,405			(14,780)		-95.9%
Net Revenue (as reported)		$	76,008		$	121,571		$	(45,563)		-37.5%

Net revenue decreased to approximately $76.0 million for the quarter ended June 30, 2020, from approximately $121.6 million for the same period in 2019. The decrease in net revenue was due primarily to the COVID-19 pandemic which continued to weaken demand for advertising in general and impaired ticket sales and/or caused the postponement of major tent pole special events. Net revenues from our radio broadcasting segment decreased 58.4% compared to the same period in 2019. Based on reports prepared by the independent accounting firm Miller, Kaplan, Arase & Co., LLP ("Miller Kaplan"), the markets we operate in (excluding Richmond and Raleigh, both of which no longer participate in Miller Kaplan) decreased 54.4% in total revenues. We experienced net revenue declines in all of our radio markets for the quarter, primarily due to lower advertising sales. We recognized approximately $43.8 million of revenue from our cable television segment during the three months ended June 30, 2020, compared to approximately $46.4 million for the same period in 2019 due to decreases in both advertising and affiliate sales. Net revenue from our Reach Media segment decreased approximately $12.5 million for the quarter ended June 30, 2020, compared to the same period in 2019. The "Tom Joyner Fantastic Voyage" took place during the second quarter of 2019 and generated revenue of approximately $10.2 million. The 2020 cruise has been postponed at this time. Finally, net revenues for our digital segment decreased approximately $1.6 million for the three months ended June 30, 2020, compared to the same period in 2019, primarily due to a decrease in direct and indirect revenues.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, decreased to approximately $53.0 million for the quarter ended June 30, 2020, down 37.6% from the approximately $84.9 million incurred for the comparable quarter in 2019. The overall operating expense decrease was driven by lower programming and technical expenses, lower selling, general and administrative expenses and lower corporate selling, general and administrative expenses across all of our divisions. Due to COVID-19, all special events scheduled to take place during the second quarter were either cancelled or postponed to a later date. The 2019 "Tom Joyner Fantastic Voyage" generated expense of approximately $8.7 million, other Reach Media events generated expense of $600,000 and radio station events generated expense of approximately $2.9 million during the second quarter of 2019.

During the quarter ended June 30, 2020, we saved approximately $7.1 million in employee compensation expense reductions through a combination of layoffs, furloughs and pay cuts. We have also incurred savings of approximately $4.1 million in reduced or delayed marketing spend, $2.3 million in lower programming content amortization, $1.8 million in contract labor and talent cost savings and $1.4 million in reduced travel and office expenses.  In addition, there were lower variable expenses such as commissions and rep fees, traffic acquisition costs and music license fees of approximately $3.2 million.

Depreciation and amortization expense decreased to approximately $2.4 million for the quarter ended June 30, 2020, compared to approximately $3.6 million for the same quarter in 2019. The decrease in expense is due to the mix of assets approaching or near the end of their useful lives, most notably certain of the Company's cable television affiliate agreements.

Interest expense decreased to approximately $18.4 million for the quarter ended June 30, 2020, compared to approximately $20.6 million for the same period in 2019. The Company made cash interest payments of approximately $22.4 million on its outstanding debt for the quarter June 30, 2020, compared to cash interest payments of approximately $24.6 million on its outstanding debt for the quarter ended June 30, 2019. During the quarter ended June 30, 2020, the Company borrowed an incremental $3.6 million on the MGM National Harbor Loan and used the proceeds to pay down the higher coupon 2018 Credit Facility by the same amount.  As of June 30, 2020, the Company had approximately $27.5 million in borrowings outstanding on its ABL Facility.

The impairment of long-lived assets for the three months ended June 30, 2019, was related to a non-cash impairment charge of approximately $3.8 million associated with our Detroit market radio broadcasting license.

During the three months ended June 30, 2020, the provision for income taxes was $465,000 compared to approximately $3.1 million for the three months ended June 30, 2019. The decrease in the provision for income taxes was primarily due to the application of the actual effective tax rate for the year to date and pre-tax income of approximately $2.1 million during the quarter. For the three months ended June 30, 2019, we recorded a provision for income taxes of approximately $3.1 million on pre-tax income from continuing operations of approximately $10.3 million, which results in a tax rate of 30.3%. This tax rate is based on an estimated annual effective tax rate of 30.9%. This rate includes approximately 2.7% of non-tax deductible officer's compensation, and 1.1% of non-tax deductible meals and entertainment expenses. The tax provision resulted in an effective tax rate of 22.1% and 30.4% for the three months ended June 30, 2020 and 2019, respectively. The Company paid no taxes for the quarter ended June 30, 2020 and paid $383,000 in taxes for the quarter ended June 30, 2019.

Other income, net, was $94,000 and approximately $1.6 million for the three months ended June 30, 2020 and 2019, respectively. We recognized other income in the amount of $80,000 and approximately $1.6 million for the three months ended June 30, 2020 and 2019, respectively, related to our MGM investment. The decrease is due to the closure of the MGM casino as a result of the COVID-19 pandemic.

The decrease in noncontrolling interests in income of subsidiaries was due primarily to lower net income recognized by Reach Media during the three months ended June 30, 2020 compared to the three months ended June 30, 2019.

Other pertinent financial information includes capital expenditures of approximately $1.2 million and $1.4 million for the quarters ended June 30, 2020 and 2019, respectively. 

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. During the three months ended June 30, 2019, the Company repurchased 26,171 shares of Class A common stock in the amount of $56,000 and repurchased 899,765 shares of Class D common stock in the amount of approximately $1.8 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, 2020, the Company executed a Stock Vest Tax Repurchase of 155,771 shares of Class D Common Stock in the amount of $140,000. During the three months ended June 30, 2019, the Company executed a Stock Vest Tax Repurchase of 6,368 shares of Class D Common Stock in the amount of $13,000.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three and six months ended June 30, 2020 and 2019 are included.  

					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)

 

 

					Three Months Ended June 30, 2019
					(in thousands, unaudited)
							Radio		Reach				Cable		Corporate/
					Consolidated		Broadcasting		Media		Digital		Television		Eliminations
STATEMENT OF OPERATIONS:
	NET REVENUE			$	121,571	$	49,312	$	18,770	$	7,673	$	46,430	$	(614)
	OPERATING EXPENSES:
	Programming and technical				31,225		10,680		4,015		2,643		14,327		(440)
	Selling, general and administrative				45,233		20,850		10,762		4,510		9,125		(14)
	Corporate selling, general and administrative				8,408		-		732		1		1,733		5,942
	Stock-based compensation				200		93		6		11		3		87
	Depreciation and amortization				3,584		851		59		460		1,901		313
	Impairment of long-lived assets				3,800		3,800		-		-		-		-
	Total operating expenses				92,450		36,274		15,574		7,625		27,089		5,888
	Operating income (loss)				29,121		13,038		3,196		48		19,341		(6,502)
	INTEREST INCOME				63		-		-		-		-		63
	INTEREST EXPENSE				20,578		338		-		-		1,919		18,321
	OTHER INCOME, net				(1,649)		(1)		-		-		-		(1,648)
		Income (loss) before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries			10,255		12,701		3,196		48		17,422		(23,112)
	PROVISION FOR (BENEFIT FROM) INCOME TAXES				3,118		3,260		745		-		4,369		(5,256)
	CONSOLIDATED NET INCOME (LOSS)				7,137		9,441		2,451		48		13,053		(17,856)
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS				546		-		-		-		-		546
	NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS			$	6,591	$	9,441	$	2,451	$	48	$	13,053	$	(18,402)
	Adjusted EBITDA2			$	39,630	$	17,917	$	3,261	$	648	$	21,356	$	(3,552)

 

 

					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)

 

					Six Months Ended June 30, 2019
					(in thousands, unaudited)
							Radio		Reach				Cable		Corporate/
					Consolidated		Broadcasting		Media		Digital		Television		Eliminations
STATEMENT OF OPERATIONS:
	NET REVENUE			$	220,020	$	86,061	$	25,743	$	15,110	$	94,253	$	(1,147)
	OPERATING EXPENSES:
	Programming and technical				62,742		20,892		8,081		5,538		29,148		(917)
	Selling, general and administrative				78,800		38,287		12,300		9,213		19,065		(65)
	Corporate selling, general and administrative				18,192		-		1,543		1		3,142		13,506
	Stock-based compensation				711		188		20		28		8		467
	Depreciation and amortization				11,858		1,719		118		921		8,477		623
	Impairment of long-lived assets				3,800		3,800		-		-		-		-
	Total operating expenses				176,103		64,886		22,062		15,701		59,840		13,614
	Operating income (loss)				43,917		21,175		3,681		(591)		34,413		(14,761)
	INTEREST INCOME				86		-		-		-		-		86
	INTEREST EXPENSE				41,408		675		-		-		3,838		36,895
	OTHER (INCOME) EXPENSE, net				(3,370)		2		-		-		-		(3,372)
		Income (loss) before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries			5,965		20,498		3,681		(591)		30,575		(48,198)
	PROVISION FOR (BENEFIT FROM) INCOME TAXES				1,807		5,253		858		2		7,667		(11,973)
	CONSOLIDATED NET INCOME (LOSS)				4,158		15,245		2,823		(593)		22,908		(36,225)
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS				671		-		-		-		-		671
	NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS			$	3,487	$	15,245	$	2,823	$	(593)	$	22,908	$	(36,896)
	Adjusted EBITDA2			$	67,346	$	27,184	$	3,837	$	750	$	43,024	$	(7,449)

Urban One, Inc. will hold a conference call to discuss its results for the second fiscal quarter of 2020. The conference call is scheduled for Thursday, July 30, 2020 at 10:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free 1-877-692-8957; international callers may dial direct (+1) 234-720-6980. The Access Code is 7060146.

A replay of the conference call will be available from 1:00 p.m. EDT July 30, 2020 until 12:00 a.m. EDT August 01, 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 2877475.

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 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 June 30, 2020 and 2019, Urban One had 44,806,219 and 45,061,821 shares of common stock outstanding on a weighted average basis (basic), respectively.  For the six months ended June 30, 2020 and 2019, Urban One had 45,025,471 and 45,175,521 shares of common stock outstanding on a weighted average basis (basic), respectively. 

4              For the three months ended June 30, 2020 and 2019, Urban One had 48,154,262 and 45,701,655 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively.  For the six months ended June 30, 2020 and 2019, Urban One had 45,025,471 and 45,984,939 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 are the Q2 2020 financial results for Urban One, Inc. (UONEK, UONE)?

In Q2 2020, Urban One reported a net revenue of $76.0 million, a 37.5% decrease from 2019.

How did Covid-19 impact Urban One's advertising revenue?

Covid-19 led to a 51% decline in radio advertising revenue and a 96% drop in event revenues.

What is the net income for Urban One in Q2 2020?

Urban One's net income for Q2 2020 was approximately $1.4 million, or $0.03 per share.

What measures is Urban One taking to address financial challenges?

Urban One implemented cost-saving measures and reported a cash liquidity of $70 million.

How has Urban One's digital business performed in Q2 2020?

Digital advertising revenue declined by 20%, but the performance was better compared to radio.