Perspective: Inclusion Rider Clause …Oscar 2018 …
March 6, 2018
E.E. Ward Moving & Storage Earns Top Van Line Agency Honors from the American Moving & Storage Association
March 6, 2018

Urban One, Inc. Reports Fourth Quarter Resul

(PRNewsfoto/Urban One, Inc.)


WASHINGTONMarch 6, 2018 /PRNewswire/ — Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended December 31, 2017.  Net revenue was approximately $109.0 million, a decrease of 4.0% from the same period in 2016. Broadcast and digital operating income1 was approximately $44.3 million, an increase of 2.8% from the same period in 2016. The Company reported operating income of approximately $20.6 million for the three months ended December 31, 2017, compared to $17.1 million for the same period in 2016. Net income was approximately $121.3 million or $2.63 per share (basic) compared to net loss of approximately $3.4 million or $0.07 per share (basic) for the same period in 2016. Adjusted EBITDA2 was approximately $38.7 million for the three months ended December 31, 2017, compared to $30.9 million for the same period in 2016, an increase of 25.6%.

Alfred C. Liggins, III, Urban One’s CEO and President stated, “Overall, we produced a strong quarter from an Adjusted EBITDA standpoint, and as a result we were able to show full year Adjusted EBITDA growth, despite the challenging market conditions. Our core radio revenues were up slightly for the quarter, excluding the impact of political revenues. Our TV advertising revenues suffered from weak ratings delivery, which was somewhat offset by growth in affiliate revenues. Our digital business benefitted from the integration of our acquisition of the Bossip, Madame Noire and Hip Hop Wired brands, and was up significantly in both revenue and Adjusted EBITDA compared to prior year. We were able to control costs, most notably at TV One and Corporate. During the quarter, we repurchased a further $20 million of our 9.25% notes at a discount, and we remain strongly committed to reducing net leverage.”

RESULTS OF OPERATIONS

Three Months Ended December 31,

Year Ended December 31,

2017

2016

2017

2016

STATEMENT OF OPERATIONS

(unaudited)

(unaudited)

(in thousands, except share data)

(in thousands, except share data)

NET REVENUE

$                           109,036

$                                 113,556

$                  440,041

$                                  456,219

OPERATING EXPENSES

Programming and technical, excluding stock-based compensation

30,619

37,211

130,417

134,000

Selling, general and administrative, excluding stock-based compensation

34,096

33,252

147,923

147,599

Corporate selling, general and administrative, excluding stock-based
compensation

12,525

15,107

41,171

47,532

Stock-based compensation

2,701

1,091

4,647

3,410

Depreciation and amortization

8,468

8,524

34,016

34,247

Impairment of long-lived assets

1,287

29,148

1,287

Total operating expenses

88,409

96,472

387,322

368,075

             Operating income

20,627

17,084

52,719

88,144

INTEREST INCOME

40

40

200

214

INTEREST EXPENSE

19,273

20,148

79,420

81,636

GAIN ON SALE-LEASEBACK

(14,411)

(GAIN) LOSS ON RETIREMENT OF DEBT

(1,174)

5,219

(2,646)

OTHER INCOME, net

(1,863)

(852)

(6,608)

(928)

Income (loss) before (benefit from) provision for income taxes and
noncontrolling interest in income of subsidiaries

4,431

(2,172)

(10,701)

10,296

(BENEFIT FROM) PROVISION FOR INCOME TAXES

(117,196)

1,315

(123,163)

9,580

CONSOLIDATED NET INCOME (LOSS)

121,627

(3,487)

112,462

716

NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

343

(120)

575

1,139

CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
STOCKHOLDERS

$                           121,284

$                                    (3,367)

$                  111,887

$                                        (423)

AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS

CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
STOCKHOLDERS

$                           121,284

$                                    (3,367)

$                  111,887

$                                        (423)

Weighted average shares outstanding – basic3

46,198,362

47,463,258

47,169,682

47,924,609

Weighted average shares outstanding – diluted4

48,527,664

47,463,258

49,632,884

47,924,609

 

 

Three Months Ended December 31,

Year Ended December 31, 

2017

2016

2017

2016

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)

$                          2.63

$                      (0.07)

$                      2.37

$                        (0.01)

    Consolidated net income (loss) attributable to common stockholders (diluted)

$                          2.50

$                      (0.07)

$                      2.25

$                        (0.01)

SELECTED OTHER DATA

Broadcast and digital operating income 1

$                      44,321

$                    43,093

$                161,701

$                    174,620

Broadcast and digital operating income margin (% of net revenue)

40.6%

37.9%

36.7%

38.3%

Broadcast and digital operating income reconciliation:

    Consolidated net income (loss) attributable to common stockholders

$                    121,284

$                    (3,367)

$                111,887

$                         (423)

    Add back non-broadcast and digital operating income items included in consolidated net
income (loss):

Interest income

(40)

(40)

(200)

(214)

Interest expense

19,273

20,148

79,420

81,636

(Benefit from) provision for income taxes

(117,196)

1,315

(123,163)

9,580

Corporate selling, general and administrative expenses

12,525

15,107

41,171

47,532

Stock-based compensation

2,701

1,091

4,647

3,410

Gain on sale-leaseback

(14,411)

(Gain) loss on retirement of debt

(1,174)

5,219

(2,646)

Other income, net

(1,863)

(852)

(6,608)

(928)

Depreciation and amortization

8,468

8,524

34,016

34,247

Noncontrolling interest in income (loss) of subsidiaries

343

(120)

575

1,139

Impairment of long-lived assets

1,287

29,148

1,287

Broadcast and digital operating income

$                      44,321

$                    43,093

$                161,701

$                    174,620

Adjusted EBITDA2

$                      38,744

$                    30,857

$                137,098

$                    136,405

Adjusted EBITDA reconciliation:

    Consolidated net income (loss) attributable to common stockholders:

$                    121,284

$                    (3,367)

$                111,887

$                         (423)

Interest income

(40)

(40)

(200)

(214)

Interest expense

19,273

20,148

79,420

81,636

(Benefit from) provision for income taxes

(117,196)

1,315

(123,163)

9,580

Depreciation and amortization

8,468

8,524

34,016

34,247

EBITDA

$                      31,789

$                    26,580

$                101,960

$                    124,826

Stock-based compensation

2,701

1,091

4,647

3,410

Gain on sale-leaseback

(14,411)

(Gain) loss on retirement of debt

(1,174)

5,219

(2,646)

Other income, net

(1,863)

(852)

(6,608)

(928)

Noncontrolling interest in income (loss) of subsidiaries

343

(120)

575

1,139

Employment Agreement Award, incentive plan award expenses and other compensation*

4,984

2,240

8,858

8,042

Severance-related costs

373

212

1,629

856

Cost method investment income

1,591

419

6,081

419

Impairment of long-lived assets

1,287

29,148

1,287

Adjusted EBITDA

$                      38,744

$                    30,857

$                137,098

$                    136,405

* Certain reclassifications have been made to prior year balances to conform to the current year presentation. 

These reclassifications had no effect on previously reported consolidated net income or loss or any other statement of operations, balance sheet or cash flow amounts.

 

 

December 31, 2017

December 31, 2016

(unaudited) 

(in thousands)

SELECTED BALANCE SHEET DATA:

Cash and cash equivalents and restricted cash

$                    37,811

$                   46,781

Intangible assets, net

971,484

1,018,333

Total assets

1,316,755

1,358,786

Total debt (including current portion, net of original issue discount and issuance costs)

970,666

1,006,236

Total liabilities

1,263,320

1,417,502

Total stockholders’ equity (deficit)

42,655

(71,126)

Redeemable noncontrolling interest

10,780

12,410

December 31, 2017

Applicable Interest Rate

(in thousands)

SELECTED LEVERAGE DATA:

2017 Credit Facility, net of original issue discount and issuance costs of approximately
$8.1 million (subject to variable rates) (a)

$                  339,289

5.70%

9.25% senior subordinated notes due February 2020, net of original issue discount and
issuance costs of approximately $1.3 million (fixed rate)

273,672

9.25%

7.375% senior secured notes due April 2022, net of original issue discount and issuance
costs of approximately $4.2 million (fixed rate)

345,833

7.375%

Comcast Note due April 2019 (fixed rate)

11,872

10.47%

     (a)       Subject to variable Libor 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, 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.

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,

2017

2016

$ Change

% Change

  (Unaudited)

(in thousands)

Net Revenue:

Radio Advertising

$

51,330

$

51,025

$

305

0.6%

Political Advertising

835

5,719

(4,884)

-85.4%

Digital Advertising

10,382

7,290

3,092

42.4%

Cable Television Advertising

18,502

22,687

(4,185)

-18.4%

Cable Television Affiliate Fees

26,289

25,326

963

3.8%

Event Revenues & Other

1,698

1,509

189

12.5%

Net Revenue (as reported)

$

109,036

$

113,556

$

(4,520)

-4.0%

Net revenue decreased to approximately $109.0 million for the quarter ended December 31, 2017, from approximately $113.6 million for the same period in 2016, a decrease of 4.0%. Net revenues from our radio broadcasting segment decreased 7.5% compared to the same period in 2016. We experienced net revenue growth most significantly in our Houston and Richmond markets with revenue declines most significantly in our CharlotteCincinnatiColumbusDetroitIndianapolisRaleigh and St. Louis. We recognized approximately $45.2 million of revenue from our cable television segment during the quarter ended December 31, 2017, compared to approximately $48.0 million for the same period in 2016, with the decrease primarily from lower advertising sales.  Net revenue from our Reach Media segment decreased approximately $1.4 million for the quarter ended December 31, 2017, compared to the same period in 2016 due primarily to weaker demand. Finally, net revenues for our digital segment increased approximately $3.1 million for the quarter ended December 31, 2017, compared to the same period in 2016, primarily from performance from our new digital acquisition.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, decreased to approximately $77.2 million for the quarter ended December 31, 2017, down 9.7% from the approximately $85.6 million incurred for the comparable quarter in 2016. The operating expense decrease was primarily driven by a combined decrease of approximately $2.6 million.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

//]]>