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URBAN ONE, INC. REPORTS FOURTH QUARTER RESULTS

WASHINGTON, July 6, 2023 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended December 31, 2022. Net revenue was approximately $132.6 million, an increase of 1.6% from the same period in 2021. The Company reported operating income of approximately $14.3 million for the three months ended December 31, 2022, compared to approximately $20.3 million for the three months ended December 31, 2021. Broadcast and digital operating income1 was approximately $47.6 million, an increase of 7.9% from the same period in 2021. Net income was $856,000 or $0.02 per share (basic) compared to approximately $5.3 million or $0.10 per share (basic) for the same period in 2021. Adjusted EBITDA2 was approximately $31.7 million for the three months ended December 31, 2022, compared to approximately $32.5 million for the same period in 2021.

Alfred C. Liggins, III, Urban One's CEO and President stated, "I was pleased that Adjusted EBITDA came in right on top of our full year guidance at $165.6 million, a new highwater mark for Urban One. Boosted by political advertising, our radio division outperformed the overall market by 360 basis points, and on a same station basis Q4 radio revenue was up approximately 14.1% year-over-year. Reach Media did not run their Fantastic Voyage cruise event in 2022, hence Q4 revenues were down year-over-year, but normalizing for that event Q4 BCF was down approximately $317,000 year-over-year. Our digital segment grew revenue by 24%, however margins were reduced by a combination of higher traffic acquisition, ad production, and video content costs. Our cable TV segment suffered from a combination of audience under-delivery against upfront commitments, timing of FVOD payments in Q4 2021, and attrition in local direct response advertising. This was partially offset by improved upfront CPM's. Paid cable subscriber churn was -10% vs Q4 2021. Despite the softer fourth quarter, our cable television segment Adjusted EBITDA of $105.3 million was the highest in our history, helping us to keep net leverage below 4.0x at 3.96x. Pro-forma for the sale of our interest in MGM National Harbor and the Indianapolis radio acquisition, net leverage was 3.21x.

As for our preliminary results for 2023, Q1 2023, same station radio segment revenue was up 2.0% on a same station basis, however we have seen a slow-down in Q2 which is currently pacing down -5.0% same station or -0.9% ex political. Year to date through May 2023, according to Miller Kaplan our radio markets are down -2.8% vs Urban One -2.9% same station. We will have the benefit of the Indianapolis acquisition in the comparisons for Q1 through Q3, which will help to offset that lack of political revenues in 2023, although the margins on political revenues are significantly higher. Revenues at Reach Media were up 8.8% in first quarter 2023 and will be further boosted in Q2 by the Fantastic Voyage. Our digital segment revenues were down 2.7% in first quarter, although they have bounced back up mid-single digits in Q2. We expect margins at digital to remain in the low 20% range, as TAC, content and employee costs normalize into a steady state. The audience under-delivery at TV One has continued into 2023, with advertising revenues down -15.9% for Q1 and down mid-to-high single digits for Q2. Our TV affiliate revenues in 2023 are down approximately 7% year to date. This will put pressure on the TV One EBITDA, which we currently expect to be in the range $88-90 million for full year 2023.

We will talk more about the full-year outlook for 2023 on our earnings call, but overall, I believe we will still compare favorably to pre-pandemic 2019 results, despite the off-cycle political revenues and general advertising market slow-down that the industry is experiencing."

As previously disclosed in the Current Report on Form 8-K filed with the SEC on April 7, 2023, the Company announced that in connection with the preparation of its financial statements for the year ended December 31, 2022, the Company's management, in consultation with its independent registered public accounting firm, re-evaluated its accounting for the valuation of its investment interest in MGM National Harbor (the "MGM Investment"), which the Company sold for cash proceeds of approximately $136.8 million on April 21, 2023. After further review of the Company's accounting for its MGM Investment, it was determined that adjustments are required to the Company's financial statements as of January 1, 2021 and for each of the annual and interim periods ended December 31, 2021 and September 30, 2022 (the "Affected Periods"), due to understatements in the value of the MGM Investment, and related tax effects. In addition to the adjustment related to the MGM Investment, the Company included corrections for misstatements that were deemed immaterial to any period presented in our previously issued financial statements. These misstatements are related to radio broadcasting license impairment, right of use assets, fair value of the Reach Media redeemable noncontrolling interest, amortization of certain launch assets, misclassifications of certain balance sheet items, and any related tax effects. The Company also corrected certain line items within the statements of cash flows and certain disclosures related to deferred tax assets and content assets for errors identified. See the Company's Annual Report on Form 10-K filed with the SEC on June 30, 2023, for more information related to the restatement, including descriptions of the misstatements and the impacts on the Company's consolidated financial statements.

 

RESULTS OF OPERATIONS



















Three Months Ended December 31,


Year Ended December 31



2022


2021


2022


2021

STATEMENT OF OPERATIONS

(unaudited)





(in thousands, except share data)


(in thousands, except share data)





(As Restated)




(As Restated)











NET REVENUE

$    132,566


$        130,475


$    484,604


$        440,285


OPERATING EXPENSES









Programming and technical, excluding stock-based compensation

36,270


38,243


122,629


119,072


Selling, general and administrative, excluding stock-based compensation

48,670


48,097


159,991


141,979


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

19,217


19,293


49,985


50,837


Stock-based compensation

1,126


87


6,595


565


Depreciation and amortization 

2,643


2,364


10,034


9,289


Impairment of long-lived assets

10,328


2,104


40,683


2,104


Total operating expenses 

118,254


110,188


389,917


323,846


             Operating income 

14,312


20,287


94,687


116,439


INTEREST INCOME

465


33


939


218


INTEREST EXPENSE

14,628


15,908


61,751


65,702


(GAIN) LOSS ON RETIREMENT OF DEBT

(3,026)


-


(6,718)


6,949


OTHER INCOME, net

(2,351)


(1,968)


(16,083)


(8,134)


             Income before provision for income taxes and noncontrolling

             interest in income of subsidiaries

5,526


6,380


56,676


52,140


PROVISION FOR INCOME TAXES

3,875


424


16,721


13,034


NET INCOME

1,651


5,956


39,955


39,106


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

795


670


2,626


2,315


NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$           856


$            5,286


$      37,329


$          36,791











Weighted average shares outstanding - basic3

47,114,178


51,206,358


48,928,063


50,163,600


Weighted average shares outstanding - diluted4

49,941,335


55,084,927


52,174,337


54,136,641

 


Three Months Ended December 31,


Year Ended December 31


2022


2021


2022


2021

PER SHARE DATA - basic and diluted:

(unaudited)


(unaudited)


(unaudited)


(unaudited)


(in thousands, except per share data)


(in thousands, except per share data)




(As Restated)




(As Restated)









    Net income attributable to common stockholders (basic)

$          0.02


$              0.10


$          0.76


$              0.73









    Net income attributable to common stockholders (diluted)

$          0.02


$              0.10


$          0.72


$              0.68









SELECTED OTHER DATA








Broadcast and digital operating income 1

$      47,626


$          44,135


$    201,984


$        179,234









Broadcast and digital operating income reconciliation:
















    Net income attributable to common stockholders

$           856


$            5,286


$      37,329


$          36,791

    Add back non-broadcast and digital operating income items included in net income:








Interest income

(465)


(33)


(939)


(218)

Interest expense

14,628


15,908


61,751


65,702

Provision for income taxes

3,875


424


16,721


13,034

Corporate selling, general and administrative expenses

19,217


19,293


49,985


50,837

Stock-based compensation

1,126


87


6,595


565

(Gain) loss on retirement of debt

(3,026)


-


(6,718)


6,949

Other income, net

(2,351)


(1,968)


(16,083)


(8,134)

Depreciation and amortization

2,643


2,364


10,034


9,289

Noncontrolling interest in income of subsidiaries

795


670


2,626


2,315

Impairment of long-lived assets

10,328


2,104


40,683


2,104

Broadcast and digital operating income

$      47,626


$          44,135


$    201,984


$        179,234









Adjusted EBITDA2

$      31,740


$          32,487


$    165,592


$        150,222









Adjusted EBITDA reconciliation:
















    Net income attributable to common stockholders

$           856


$            5,286


$      37,329


$          36,791

Interest income

(465)


(33)


(939)


(218)

Interest expense

14,628


15,908


61,751


65,702

Provision for income taxes

3,875


424


16,721


13,034

Depreciation and amortization

2,643


2,364


10,034


9,289

EBITDA

$      21,537


$          23,949


$    124,896


$        124,598

Stock-based compensation

1,126


87


6,595


565

(Gain) loss on retirement of debt

(3,026)


-


(6,718)


6,949

Other income, net

(2,351)


(1,968)


(16,083)


(8,134)

Noncontrolling interest in income of subsidiaries

795


670


2,626


2,315

Corporate development costs

377


1,886


1,810


6,727

Employment Agreement Award and other compensation

(67)


3,465


2,129


6,163

Contingent consideration from acquisition

-


-


-


280

Severance-related costs

462


311


850


965

Investment income from MGM National Harbor

2,559


1,983


8,804


7,690

Impairment of long-lived assets

10,328


2,104


40,683


2,104

Adjusted EBITDA

$      31,740


$          32,487


$    165,592


$        150,222

 


December 31, 2022


December 31, 2021





(as restated)



(in thousands)

SELECTED BALANCE SHEET DATA:



Cash and cash equivalents and restricted cash

$                95,379


$              152,218


Intangible assets, net

765,191


774,167


Available-for-sale securities - at fair value

136,826


112,600


Total assets

1,338,487


1,329,025


Total debt (including current portion, net of issuance costs)

739,000


818,616


Total liabilities

979,417


1,006,690


Total stockholders' equity

333,772


303,680


Redeemable noncontrolling interests

25,298


18,655








December 31, 2022


Applicable Interest Rate


(in thousands)



SELECTED LEVERAGE DATA:



7.375% senior secured notes due February 2028, net of issuance costs of approximately $11.0 million (fixed rate)

$              739,000


7.375 %

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-K/A, 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.

Net revenue increased to approximately $132.6 million for the quarter ended December 31, 2022, from approximately $130.5 million for the same period in 2021. Net revenues from our radio broadcasting segment increased 23.8% compared to the same period in 2021. Net revenue from our radio broadcasting segment, excluding political advertising, increased 9.2% compared to the same period in 2021. Same station net revenue from our radio broadcasting segment, excluding political advertising, decreased 0.7% compared to the same period in 2021. We recognized approximately $11.9 million of revenue from our Reach Media segment during the three months ended December 31, 2022, compared to approximately $19.3 million for the same period in 2021. 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. We recognized approximately $49.7 million and $54.1 million of revenue from our cable television segment during the three months ended December 31, 2022, and 2021, respectively, due primarily to decreased advertising and affiliate sales. We recognized approximately $24.2 million in revenue for our digital segment during the three months ended December 31, 2022, compared to approximately $19.5 million in the same period in 2021, primarily from higher direct revenues.

The following chart indicates the sources of our net revenue for the three months ended December 31, 2022 and 2021.



Three Months Ended December 31,










2022


2021


$ Change



% Change



  (Unaudited)









(in thousands)












(As Restated)








Net Revenue:














Radio Advertising


$

48,542


$

46,211


$

2,331



5.0 %


Political Advertising



8,089



1,502



6,587



438.5 %


Digital Advertising



23,301



19,462



3,839



19.7 %


Cable Television Advertising



26,522



28,951



(2,429)



-8.4 %


Cable Television Affiliate Fees



23,278



25,129



(1,851)



-7.4 %


Event Revenues & Other



2,834



9,220



(6,386)



-69.3 %
















Net Revenue (as reported)


$

132,566


$

130,475


$

2,091



1.6 %


Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, decreased to approximately $104.2 million for the quarter ended December 31, 2022, down 1.4% from the approximately $105.6 million incurred for the comparable quarter in 2021. The overall operating expense decrease was driven primarily by lower programming and technical expenses, as selling, general and administrative expenses and corporate selling, general and administrative expenses were relatively flat. There was an increase of approximately $5.6 million in employee compensation expenses, $4.0 million in variable expenses, $2.2 million in travel, entertainment and office expenses, and $2.4 million in contract labor, talent costs and consulting fees. These increased expenses were partially offset by a decrease of approximately $5.3 million in content amortization, a decrease of $3.5 million in Employment Agreement award expenses, and a decrease of $6.9 million in event spending primarily related to Reach's cruise event. As a result of the acquisition and disposition of stations in Indianapolis on August 31, 2022, expenses for the cluster increased approximately $3.3 million for the three months ended December 31, 2022 compared to the same period in 2021.

Depreciation and amortization expense increased to approximately $2.6 million for the quarter ended December 31, 2022, compared to approximately $2.4 million for the quarter ended December 31, 2021.

Interest expense decreased to approximately $14.6 million for the quarter ended December 31, 2022 compared to approximately $15.9 million for the quarter ended December 31, 2021. The Company made cash interest payments of $625,000 for the quarter ended December 31, 2022, compared to cash interest payments of $187,000 for the quarter ended December 31, 2021. During the quarter ended December 31, 2022, the Company repurchased approximately $25.0 million of its 2028 Notes at an average price of approximately 86.4% of par, resulting in a net gain on retirement of debt of approximately $3.0 million for the quarter ended December 31, 2022.

The impairment of long-lived assets for the three months ended December 31, 2022, was related to non-cash impairment charges of approximately $7.4 million for radio broadcasting licenses and approximately $2.9 million for goodwill in certain of our radio markets. The impairment of long-lived assets for the three months ended December 31, 2021, was related to a non-cash impairment charge of approximately $2.1 million associated with certain radio market broadcasting licenses.

For the three months ended December 31, 2022 and 2021, we recorded a provision for income taxes of approximately $3.9 million and $424,000, respectively. The Company paid approximately $1.1 million in taxes for the quarter ended December 31, 2022, and paid $360,000 in taxes for the quarter ended December 31, 2021.

Other income, net, was approximately $2.4 million and $2.0 million for the three months ended December 31, 2022 and 2021, respectively. We recognized other income in the amount of approximately $2.6 million and $2.0 million for the three months ended December 31, 2022 and 2021, respectively, related to our MGM investment.

Other pertinent financial information includes capital expenditures of approximately $1.5 million and $2.1 million for the quarters ended December 31, 2022 and 2021, respectively.

During the three months ended December 31, 2022, the Company did not repurchase any shares of Class A common stock and repurchased 13,577 shares of Class D common stock in the amount of $57,000. During the three months ended December 31, 2021, the Company did not repurchase any shares of Class A or Class D common stock.

The Company, in connection with its prior 2009 stock option and restricted stock plan and its current 2019 Equity and Performance Incentive Plan (the "2019 Plan"), is authorized to purchase shares of Class D common stock to satisfy employee tax obligations in connection with the vesting of share grants under the plan. There were no Stock Vest Tax Repurchases for the three months ended December 31, 2022 and 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.

Other Matters

On March 8, 2023, Radio One Entertainment Holdings, LLC ("ROEH"), the Company's wholly owned subsidiary issued a put notice (the "Put Notice") with respect to one hundred percent (100%) of its interest (the "Put Interest") in MGM National Harbor, LLC ("MGMNH"). On April 21, 2023, ROEH closed on the sale of the Put Interest. The Company received approximately $136.8 million at the time of settlement of the Put Interest, representing the put price. During the quarter ended March 31, 2023, the Company received $8.8 million representing the Company's annual distribution from MGMNH with respect to fiscal year 2022.

On April 11, 2023, the Company announced it had signed a definitive asset purchase agreement with Cox Media Group ("CMG") to purchase its Houston radio cluster. Under the terms of the agreement, Urban One will acquire 93Q Country KKBQ-FM, classic rock station The Eagle 106.9 & 107.5 KHPT-FM and KGLK-FM, and Country Legends 97.1 KTHT-FM. In furtherance of the transaction, Urban One will divest stations to comply with FCC ownership regulations. The acquisition and disposition transactions are subject to FCC approval and other customary closing conditions and is anticipated to close in the third quarter of 2023. CMG and Urban One will continue to operate their respective stations until the transactions close.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three months and year ended December 31, 2022 and 2021 are included.






Three Months Ended December 31, 2022






(in thousands, unaudited)
































All Other - 








Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Digital

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

132,566

$

47,588

$

11,923

$

24,172

$

49,727

$

(844)


OPERATING EXPENSES:














Programming and technical 


36,270


10,898


4,911


5,983


14,867


(389)


Selling, general and administrative


48,670


21,059


2,445


16,255


9,403


(492)


Corporate selling, general and administrative


19,217


-


1,419


-


3,637


14,161


Stock-based compensation


1,126


193


20


32


209


672


Depreciation and amortization


2,643


934


45


328


994


342


Impairment of long-lived assets


10,328


10,328


-


-


-


-


Total operating expenses


118,254


43,412


8,840


22,598


29,110


14,294


      Operating income (loss)


14,312


4,176


3,083


1,574


20,617


(15,138)


INTEREST INCOME


465


-


-


-


-


465


INTEREST EXPENSE


14,628


50


-


76


1,919


12,583


GAIN ON RETIREMENT OF DEBT


(3,026)


-


-


-


-


(3,026)


OTHER (INCOME) EXPENSE, net


(2,351)


489


-


(266)


-


(2,574)


      Income (loss) before provision for (benefit from) income taxes and

      noncontrolling interest in income of subsidiaries 


5,526


3,637


3,083


1,764


18,698


(21,656)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


3,875


11,108


(227)


1,448


489


(8,943)


NET INCOME (LOSS)  


1,651


(7,471)


3,310


316


18,209


(12,713)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


795


-


-


-


-


795


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

856

$

(7,471)

$

3,310

$

316

$

18,209

$

(13,508)


















Adjusted EBITDA2

$

31,740

$

15,747

$

3,088

$

1,934

$

21,820

$

(10,849)

 






Three Months Ended December 31, 2021






(in thousands, unaudited, as restated)
































All Other - 








Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Digital

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

130,475

$

38,453

$

19,268

$

19,472

$

54,140

$

(858)


OPERATING EXPENSES:














Programming and technical 


38,243


9,947


4,733


4,246


19,695


(378)


Selling, general and administrative


48,097


17,243


9,145


12,003


10,170


(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


Impairment of long-lived assets


2,104


2,104


-


-


-


-


Total operating expenses


110,188


30,100


15,502


16,569


33,776


14,241


      Operating income (loss)


20,287


8,353


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 


6,380


8,281


3,766


2,824


18,445


(26,936)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


424


4,668


1,026


-


3,415


(8,685)


NET INCOME (LOSS)  


5,956


3,613


2,740


2,824


15,030


(18,251)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


670


-


-


-


-


670


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

5,286

$

3,613

$

2,740

$

2,824

$

15,030

$

(18,921)


















Adjusted EBITDA2

$

32,487

$

11,506

$

3,816

$

3,222

$

21,340

$

(7,397)

 






Year Ended December 31, 2022






(in thousands, unaudited)
































All Other - 








Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Digital

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

484,604

$

156,678

$

43,117

$

78,526

$

209,871

$

(3,588)


OPERATING EXPENSES:














Programming and technical 


122,629


38,695


15,752


15,588


54,131


(1,537)


Selling, general and administrative


159,991


70,059


8,503


41,132


42,384


(2,087)


Corporate selling, general and administrative


49,985


-


3,403


7


8,063


38,512


Stock-based compensation


6,595


198


586


33


842


4,936


Depreciation and amortization


10,034


3,411


188


1,323


3,847


1,265


Impairment of long-lived assets


40,683


40,683


-


-


-


-


Total operating expenses


389,917


153,046


28,432


58,083


109,267


41,089


      Operating income (loss)


94,687


3,632


14,685


20,443


100,604


(44,677)


INTEREST INCOME


939


-


-


-


-


939


INTEREST EXPENSE


61,751


198


-


314


7,675


53,564


GAIN ON RETIREMENT OF DEBT


(6,718)


-


-


-


-


(6,718)


OTHER (INCOME) EXPENSE, net


(16,083)


617


-


(266)


-


(16,434)


      Income (loss) before provision for (benefit from) income taxes and

      noncontrolling interest in income of subsidiaries 


56,676


2,817


14,685


20,395


92,929


(74,150)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


16,721


9,543


3,746


1,448


22,969


(20,985)


NET INCOME (LOSS)  


39,955


(6,726)


10,939


18,947


69,960


(53,165)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


2,626


-


-


-


-


2,626


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

37,329

$

(6,726)

$

10,939

$

18,947

$

69,960

$

(55,791)


















Adjusted EBITDA2

$

165,592

$

48,169

$

15,399

$

21,804

$

105,293

$

(25,073)

 






Year Ended December 31, 2021






(in thousands, unaudited, as restated)
































All Other - 








Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting


Media


Digital

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

440,285

$

140,246

$

46,437

$

59,937

$

197,003

$

(3,338)


OPERATING EXPENSES:














Programming and technical 


119,072


36,243


14,965


12,307


57,016


(1,459)


Selling, general and administrative


141,979


61,969


14,491


30,388


36,989


(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


Impairment of long-lived assets


2,104


2,104


-


-


-


-


Total operating expenses


323,846


103,489


33,119


43,962


105,610


37,666


      Operating income (loss)


116,439


36,757


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 


52,140


36,975


13,318


15,659


83,717


(97,529)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


13,034


12,155


3,573


-


20,815


(23,509)


NET INCOME (LOSS)  


39,106


24,820


9,745


15,659


62,902


(74,020)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


2,315


-


-


-


-


2,315


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

36,791

$

24,820

$

9,745

$

15,659

$

62,902

$

(76,335)


















Adjusted EBITDA2

$

150,222

$

42,518

$

13,587

$

17,571

$

95,358

$

(18,812)

Urban One, Inc. will hold a conference call to discuss its results for the fourth fiscal quarter of 2022. The conference call is scheduled for Friday, July 07, 2023 at 10:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free 1-844-291-6355; international callers may dial direct (+1) 234-720-6988. The Access Code is 9870371.

A replay of the conference call will be available from 1:00 p.m. EDT July 07, 2023 until 12:00 a.m. EDT July 14, 2023. 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 8019907.

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, 2022, we owned and/or operated 66 independently formatted, revenue producing broadcast stations (including 55 FM or AM stations, 9 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. 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, 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. 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, impairment charges, debt financings and retirements, corporate overhead and stock-based compensation. 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 loss, 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, Employment Agreement Award expenses and other compensation, contingent consideration from acquisition, corporate development costs, severance-related costs, 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. 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. Accordingly, based on the previous description of Adjusted EBITDA, we believe that it 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. Adjusted 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, 2022 and 2021, Urban One had 47,114,178 and 51,206,358 shares of common stock outstanding on a weighted average basis (basic), respectively. For the year ended December 31, 2022 and 2021, Urban One had 48,928,063 and 50,163,600 shares of common stock outstanding on a weighted average basis (basic), respectively.

  4. For the three months ended December 31, 2022 and 2021, Urban One had 49,941,335 and 55,084,927 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the year ended December 31, 2022 and 2021, Urban One had 52,174,337 and 54,136,641 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.

Peter D. Thompson, EVP and CFO, (301) 429-4638