form8-kaugust022107.htm
 
 
 
 
 
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report: August 02, 2017
 
(Date of earliest event reported)
 
Commission File No.: 0-25969
 
 
URBAN ONE, INC. LOGO
 
URBAN ONE, INC.
(Exact name of registrant as specified in its charter)
 
                                                                     
Delaware    52-1166660
(State or other jurisdiction of   (I.R.S. Employer Identification No.)
incorporation or organization)  
 
         
1010 Wayne Avenue
14th Floor
Silver Spring, Maryland 20910
(Address of principal executive offices)
 
(301) 429-3200
Registrant’s telephone number, including area code

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o
  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 

o
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 

o
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 

o
  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
                                                                                                                                                                                                   Emerging growth company ¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ¨
 



 
ITEM 2.02.  Results of Operations and Financial Condition.
 

Urban One, Inc. (the “Company”) issued a press release setting forth the results for its quarter ended June 30, 2017. A copy of the press release is attached as Exhibit 99.1.
 

ITEM 9.01.  Financial Statements and Exhibits.

(c) Exhibits
     
Exhibit Number
 
Description
     
99.1  
Press release dated August 2, 2017: Urban One, Inc. Reports Second Quarter Results.


 
SIGNATURE
 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 

                                                                           
    RADIO ONE, INC.
     
 
 
/s/ Peter D. Thompson
August 02, 2017   Peter D. Thompson
   
Chief Financial Officer and Principal Accounting Officer

                                                                          

exhibit99-1august022017.htm
NEWS RELEASE
August 2, 2017                                                                                           Contact: Peter D. Thompson, EVP and CFO
FOR IMMEDIATE RELEASE                                                                                                                   (301) 429-4638
Washington, DC


URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS

Washington, DC: - Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended June 30, 2017.  Net revenue was approximately $117.6 million, a decrease of 4.1% from the same period in 2016. Broadcast and digital operating income1 was approximately $41.8 million, a decrease of 14.6% from the same period in 2016. The Company reported operating income of approximately $12.1 million for the three months ended June 30, 2017, compared to $27.7 million for the same period in 2016. Net income was $802,000 or $0.02 per share (basic) compared to net income of approximately $7.3 million or $0.15 per share (basic) for the same period in 2016.

Alfred C. Liggins, III, Urban One’s CEO and President stated, “Our radio broadcasting revenues improved sequentially from Q1, and also within the quarter itself with June being up 2.3% vs 2017. According to Miller Kaplan, we outperformed our markets by 190Bps in June, which is encouraging. This sequential improvement looks likely to continue for Q3, which is currently pacing (–2.9%). Reach Media continued to experience a soft marketplace for multi-cultural network advertising spend, which was somewhat offset by the success of their Tom Joyner Fantastic Voyage cruise. TV One experienced soft ratings, which resulted in a 5.9% decline in net advertising revenues for the quarter. We still believe that TV One will achieve the Adjusted EBITDA guidance of $82-84 million provided on the last earnings call, driven by improved affiliate revenues projected for H2. Our digital segment revenues benefitted from the acquisition of the Bossip and Madame Noire brands, and we have continued to invest in short-form video and data analytics which should help drive long-term growth for our digital businesses.”
 
 
 

 












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PAGE 2 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS

 
RESULTS OF OPERATIONS
                       
                         
   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
 
 
2017
   
2016
   
2017
   
2016
 
STATEMENT OF OPERATIONS
 
(unaudited)
   
(unaudited)
   
(unaudited)
   
(unaudited)
 
   
(in thousands, except share data)
   
(in thousands, except share data)
 
                         
NET REVENUE
  $ 117,638     $ 122,719     $ 218,927     $ 231,807  
OPERATING EXPENSES
                               
Programming and technical, excluding stock-based compensation
    33,009       30,693       64,906       64,696  
Selling, general and administrative, excluding stock-based compensation
    42,847       43,092       77,302       78,541  
Corporate selling, general and administrative, excluding stock-based compensation
    8,328       11,878       18,367       23,252  
Stock-based compensation
    158       765       291       1,537  
Depreciation and amortization
    8,432       8,572       16,744       17,254  
Impairment of long-lived assets
    12,756       -       12,756       -  
Total operating expenses
    105,530       95,000       190,366       185,280  
             Operating income
    12,108       27,719       28,561       46,527  
INTEREST INCOME
    45       55       148       123  
INTEREST EXPENSE
    19,863       20,531       40,209       41,169  
GAIN ON SALE-LEASEBACK
    (14,411 )     -       (14,411 )     -  
LOSS (GAIN) ON RETIREMENT OF DEBT
    7,083       (2,646 )     7,083       (2,646 )
OTHER (INCOME), net
    (1,574 )     (43 )     (2,895 )     (54 )
Income (loss) before provision for income taxes and noncontrolling interest in income of subsidiaries
    1,192       9,932       (1,277 )     8,181  
PROVISION FOR INCOME TAXES
    182       2,183       70       3,958  
CONSOLIDATED NET INCOME (LOSS)
    1,010       7,749       (1,347 )     4,223  
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    208       435       164       856  
CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ 802     $ 7,314     $ (1,511 )   $ 3,367  
                                 
AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS
                         
CONSOLIDATED NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ 802     $ 7,314     $ (1,511 )   $ 3,367  
                                 
Weighted average shares outstanding - basic3
    47,816,723       48,110,440       47,890,618       48,387,482  
Weighted average shares outstanding - diluted4
    48,237,113       49,279,142       47,890,618       49,561,381  







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PAGE 3 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS
 
 
                         
   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
   
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)
  $ 0.02     $ 0.15     $ (0.03 )   $ 0.07  
                                 
    Consolidated net income (loss) attributable to common stockholders (diluted)
  $ 0.02     $ 0.15     $ (0.03 )   $ 0.07  
                                 
SELECTED OTHER DATA
                               
    Broadcast and digital operating income 1
  $ 41,782     $ 48,934     $ 76,719     $ 88,570  
    Broadcast and digital operating income margin (% of net revenue)
    35.5 %     39.9 %     35.0 %     38.2 %
                                 
Broadcast and digital operating income reconciliation:
                               
                                 
    Consolidated net income (loss) attributable to common stockholders
  $ 802     $ 7,314     $ (1,511 )   $ 3,367  
    Add back non-broadcast and digital operating income items included in consolidated net income (loss):
 
        Interest income
    (45 )     (55 )     (148 )     (123 )
        Interest expense
    19,863       20,531       40,209       41,169  
        Provision for income taxes
    182       2,183       70       3,958  
        Corporate selling, general and administrative expenses
    8,328       11,878       18,367       23,252  
        Stock-based compensation
    158       765       291       1,537  
        Gain on sale-leaseback
    (14,411 )     -       (14,411 )     -  
        Loss (gain) on retirement of debt
    7,083       (2,646 )     7,083       (2,646 )
       Other (income), net
    (1,574 )     (43 )     (2,895 )     (54 )
       Depreciation and amortization
    8,432       8,572       16,744       17,254  
       Noncontrolling interest in income of subsidiaries
    208       435       164       856  
       Impairment of long-lived assets
    12,756       -       12,756       -  
       Broadcast and digital operating income
  $ 41,782     $ 48,934     $ 76,719     $ 88,570  
                                 
Adjusted EBITDA5
  $ 36,653     $ 39,933     $ 64,398     $ 70,666  
                                 
Adjusted EBITDA reconciliation:
                               
                                 
    Consolidated net income (loss) attributable to common stockholders:
  $ 802     $ 7,314     $ (1,511 )   $ 3,367  
        Interest income
    (45 )     (55 )     (148 )     (123 )
        Interest expense
    19,863       20,531       40,209       41,169  
        Provision for income taxes
    182       2,183       70       3,958  
        Depreciation and amortization
    8,432       8,572       16,744       17,254  
        EBITDA
  $ 29,234     $ 38,545     $ 55,364     $ 65,625  
        Stock-based compensation
    158       765       291       1,537  
        Gain on sale-leaseback
    (14,411 )     -       (14,411 )     -  
        Loss (gain) on retirement of debt
    7,083       (2,646 )     7,083       (2,646 )
        Other (income), net
    (1,574 )     (43 )     (2,895 )     (54 )
        Noncontrolling interest in income of subsidiaries
    208       435       164       856  
        Employment Agreement Award and incentive plan award expenses
    1,443       2,536       2,484       4,775  
        Severance-related costs
    250       341       603       573  
        Cost method investment income
    1,506       -       2,959       -  
        Impairment of long-lived assets
    12,756       -       12,756       -  
        Adjusted EBITDA
  $ 36,653     $ 39,933     $ 64,398     $ 70,666  
 
 
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PAGE 4 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS


 
June 30, 2017
   
December 31, 2016
 
 
(unaudited)
       
 
(in thousands)
 
SELECTED BALANCE SHEET DATA:
         
Cash and cash equivalents and restricted cash
$ 65,488     $ 46,781  
Intangible assets, net
  1,001,878       1,018,333  
Total assets
  1,361,830       1,358,786  
Total debt (including current portion, net of original issue discount and issuance costs)
  1,010,935       1,006,236  
Total liabilities
  1,424,635       1,417,502  
Total stockholders' deficit
  (73,408 )     (71,126 )
Redeemable noncontrolling interest
  10,603       12,410  
               
 
June 30, 2017
   
Applicable
Interest Rate
 
   (in thousands)      
SELECTED LEVERAGE DATA:
             
2017 Credit Facility, net of original issue discount and issuance costs of approximately $8.6 million (subject to variable rates) (a)
$ 340,516       5.30 %
9.25% senior subordinated notes due February 2020, net of original issue discount and issuance costs of approximately $1.9 million (fixed rate)
  313,112       9.25 %
7.375% senior secured notes due April 2022, net of original issue discount and issuance costs of approximately $4.6 million (fixed rate)
  345,435       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.













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PAGE 5 -- URBAN ONE, INC. REPORTS SECOND QUARTER 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,
             
 
2017
   
2016
   
$ Change
   
% Change
 
 
 (Unaudited)
             
 
(in thousands)
             
Net Revenue:
                       
Radio Advertising
  $ 52,017     $ 55,988     $ (3,971 )     -7.1 %
Political Advertising
    731       932       (201 )     -21.6 %
Digital Advertising
    6,740       6,065       675       11.1 %
Cable Television Advertising
    18,988       20,170       (1,182 )     -5.9 %
Cable Television Affiliate Fees
    26,140       27,403       (1,263 )     -4.6 %
Event Revenues & Other
    13,022       12,161       861       7.1 %
                                 
Net Revenue (as reported)
  $ 117,638     $ 122,719     $ (5,081 )     -4.1 %
 
Net revenue decreased to approximately $117.6 million for the quarter ended June 30, 2017, from approximately $122.7 million for the same period in 2016, a decrease of 4.1%. Net revenues from our radio broadcasting segment decreased 5.0% compared to the same period in 2016. We experienced net revenue declines most significantly in our Cincinnati, Dallas, Houston, Philadelphia, and Washington DC markets. We recognized approximately $45.4 million of revenue from our cable television segment during the three months ended June 30, 2017, compared to approximately $47.6 million for the same period in 2016, with a decrease primarily in advertising and affiliate sales.  Net revenue from our Reach Media segment decreased $920,000 for the quarter ended June 30, 2017, compared to the same period in 2016 due primarily to weaker demand. The “Tom Joyner Fantastic Voyage” took place during the second quarters of 2017 and 2016 and generated revenue of approximately $9.4 million and $8.8 million, respectively for Reach Media. Finally, net revenues for our digital segment increased $675,000 for the three months ended June 30, 2017, compared to the same period in 2016.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, decreased to approximately $84.2 million for the quarter ended June 30, 2017, down 1.7% from the approximately $85.7 million incurred for the comparable quarter in 2016. The operating expense decrease was primarily driven by lower corporate selling, general and administrative expenses at our cable television segment due to a decrease in incentive-based payroll costs.  This decrease was partially offset by higher programming and technical expenses at our digital segment due to its increased investment in video content, primarily related to increased headcount contributing to higher payroll costs.

Depreciation and amortization expense decreased to approximately $8.4 million compared to approximately $8.6 million for the quarter ended June 30, 2016. The decrease was due to the completion of useful lives for certain assets.

Interest expense decreased to approximately $19.9 million for the quarter ended June 30, 2017, compared to approximately $20.5 million for the same period in 2016. The Company made cash interest payments of approximately $18.2 million on its outstanding debt for the quarter ended June 30, 2017, compared to cash interest payments of approximately $18.6 million on all outstanding instruments for the quarter ended June 30, 2016. As previously announced, on April 18, 2017, the Company closed on a new senior secured credit facility (the “2017 Credit Facility”). The proceeds from the 2017 Credit Facility were used to prepay in full the Company’s previously existing senior secured credit facility and the agreement governing such credit facility was terminated on April 18, 2017.




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PAGE 6 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS

 
The loss on retirement of debt of approximately $7.1 million for the three months ended June 30, 2017, was due to the retirement of the 2015 Credit Facility. This amount included a write-off of previously capitalized debt financing costs and original issue discount associated with the 2015 Credit Facility, and costs associated with the financing transactions. The gain on retirement of debt for the three months ended June 30, 2016, was due to the redemption of approximately $20 million of our 2020 Notes at a discount.

The impairment of long-lived assets for the three months ended June 30, 2017, of approximately $12.8 million, was related to a non-cash impairment charge recorded to reduce the carrying value of our Houston radio broadcasting licenses.

The gain on sale-leaseback for the three months ended June 30, 2017, was due to the Company closing on its previously announced sale of certain land, towers and equipment to a third party.  The Company is leasing certain of the assets back from the buyer as a part of its normal operations. The Company received proceeds of approximately $25.0 million, resulting in an overall net gain on sale of approximately $22.5 million, of which approximately $14.4 million was recognized immediately during the second quarter, and approximately $8.1 million which was deferred and will be recognized into income over the lease term of ten years.

The Company began using the estimated annual effective tax rate method under ASC 740-270, “Interim Reporting” to calculate the provision for income taxes at the beginning of 2017. For the three months ended June 30, 2017, we recorded a provision for income taxes of $182,000 on pre-tax income from continuing operations of approximately $1.2 million. The provision for income taxes for the three months ended June 30, 2016 of approximately $2.2 million was primarily attributable to the deferred tax liability for indefinite-lived intangible assets, based on a discrete tax provision. The Company paid $396,000 and $352,000 in taxes for the quarters ended June 30, 2017 and 2016, respectively.

Other income, net increased to approximately $1.6 million for the three months ended June 30, 2017, compared to $43,000 for the same period in 2016. The primary driver of the increase in other income was from our investment in MGM.

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, 2017, versus the same period in 2016.

 
Other pertinent financial information includes capital expenditures of approximately $2.3 million and $1.1 million for the quarters ended June 30, 2017 and 2016, respectively.  As of June 30, 2017, the Company had total debt (net of cash and restricted cash balances and original issue discount) of approximately $945.4 million. During the three months ended June 30, 2017, the Company did not repurchase any Class A common stock and repurchased 1,054,290 shares of Class D common stock in the amount of approximately $2.1 million. During the three months ended June 30, 2016, the Company did not repurchase any Class A common stock and repurchased 575,608 shares of Class D common stock in the amount of approximately $1.1 million. The Company, in connection with its 2009 stock 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 three months ended June 30, 2017, the Company repurchased 7,699 shares of Class D Common Stock, to satisfy employee tax obligations, in the amount of $23,000.  Comparatively, during the three months ended June 30, 2016, the Company did not execute a Stock Vest Tax Repurchase.

As previously announced, effective January 1, 2017, the Company changed its reportable segment disclosures. Along with the results of Interactive One, all digital components from our reportable segments will now be part of a newly formed reportable segment called “Digital”. This new reportable segment will better reflect the manner in which we manage our business and better reflect our operational structure. Segment data for the three and six months ended June 30, 2016 has been reclassified to conform to the current period presentation. These reclassifications occurred among all segments.

The Company previously presented the reclassified first quarter 2016 results in the press release dated May 4, 2017.  The reclassified results for the third and fourth quarters of 2016, as well as results for full year 2016 is presented at the end of this press release.

 
Supplemental Financial Information:
 
For comparative purposes, the following more detailed, unaudited statements of operations for the three and six months ended June 30, 2017 and 2016 are included. These detailed, unaudited and adjusted statements of operations include certain reclassifications.  These reclassifications had no effect on previously reported net income or loss, or any other previously reported statements of operations, balance sheet or cash flow amounts.
 
 
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PAGE 7 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS


   
Three Months Ended June 30, 2017
 
   
(in thousands, unaudited)
 
                                     
                                     
         
Radio
   
Reach
         
Cable
   
Corporate/
 
   
Consolidated
   
Broadcasting
   
Media
   
Digital
   
Television
   
Eliminations
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 117,638     $ 48,161     $ 17,528     $ 6,740     $ 45,369     $ (160 )
OPERATING EXPENSES:
                                               
Programming and technical
    33,009       9,220       5,633       3,510       14,667       (21 )
Selling, general and administrative
    42,847       19,894       9,764       4,707       8,621       (139 )
Corporate selling, general and administrative
    8,328       -       463       -       830       7,035  
Stock-based compensation
    158       63       -       -       -       95  
Depreciation and amortization
    8,432       939       52       463       6,568       410  
Impairment of long-lived assets
    12,756       12,756       -       -       -       -  
Total operating expenses
    105,530       42,872       15,912       8,680       30,686       7,380  
     Operating income (loss)
    12,108       5,289       1,616       (1,940 )     14,683       (7,540 )
INTEREST INCOME
    45       -       -       -       -       45  
INTEREST EXPENSE
    19,863       368       -       -       1,919       17,576  
GAIN ON SALE-LEASEBACK
    (14,411 )     (14,411 )      -        -        -        -  
LOSS ON RETIREMENT OF DEBT
    7,083       -       -       -       -       7,083  
OTHER INCOME, net
    (1,574 )     (153 )     -       -       -       (1,421 )
Income (loss) before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries
    1,192       19,485       1,616       (1,940 )     12,764       (30,733 )
PROVISION FOR (BENEFIT FROM) INCOME TAXES
    182       7,650       584       72       4,841       (12,965 )
CONSOLIDATED NET INCOME (LOSS)
    1,010       11,835       1,032       (2,012 )     7,923       (17,768 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    208       -       -       -       -       208  
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ 802     $ 11,835     $ 1,032     $ (2,012 )   $ 7,923     $ (17,976 )
                                                 
Adjusted EBITDA5
  $ 36,653     $ 19,243     $ 1,686     $ (1,447 )   $ 21,257     $ (4,086 )
 
 
 
 

 

 
 

 
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PAGE 8 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS

 
   
Three Months Ended June 30, 2016
 
   
(in thousands, unaudited, as reclassified2)
 
                                     
                                     
         
Radio
   
Reach
         
Cable
   
Corporate/
 
   
Consolidated
   
Broadcasting
   
Media
   
Digital
   
Television
   
Eliminations
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 122,719     $ 50,714     $ 18,448     $ 6,065     $ 47,552     $ (60 )
OPERATING EXPENSES:
                                               
Programming and technical
    30,693       8,933       5,443       2,254       14,063       -  
Selling, general and administrative
    43,092       20,171       9,680       3,989       9,311       (59 )
Corporate selling, general and administrative
    11,878       -       1,129       -       2,855       7,894  
Stock-based compensation
    765       55       10       3       -       697  
Depreciation and amortization
    8,572       1,077       47       438       6,552       458  
Total operating expenses
    95,000       30,236       16,309       6,684       32,781       8,990  
    Operating income (loss)
    27,719       20,478       2,139       (619 )     14,771       (9,050 )
INTEREST INCOME
    55       -       -       -       -       55  
INTEREST EXPENSE
    20,531       330       -       -       1,919       18,282  
GAIN ON RETIREMENT OF DEBT
    (2,646 )     -       -       -       -       (2,646 )
OTHER INCOME, net
    (43 )     (5 )     -       -       -       (38 )
Income (loss) before provision for income taxes and noncontrolling interest in income of subsidiaries
    9,932       20,153       2,139       (619 )     12,852       (24,593 )
PROVISION FOR INCOME TAXES
    2,183       2,116       37       20       10       -  
CONSOLIDATED NET INCOME (LOSS)
    7,749       18,037       2,102       (639 )     12,842       (24,593 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    435       -       -       -       -       435  
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ 7,314     $ 18,037     $ 2,102     $ (639 )   $ 12,842     $ (25,028 )
                                                 
Adjusted EBITDA5
  $ 39,933     $ 21,902     $ 2,237     $ (176 )   $ 21,322     $ (5,352 )
 
 

 
 

 
 
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PAGE 9 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS

 
   
Six Months Ended June 30, 2017
 
   
(in thousands, unaudited)
 
                                     
                                     
         
Radio
   
Reach
         
Cable
   
Corporate/
 
   
Consolidated
   
Broadcasting
   
Media
   
Digital
   
Television
   
Eliminations
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 218,927     $ 87,898     $ 25,191     $ 12,246     $ 93,924     $ (332 )
OPERATING EXPENSES:
                                               
Programming and technical
    64,906       17,137       10,826       6,113       30,858       (28 )
Selling, general and administrative
    77,302       38,230       11,262       8,749       19,305       (244 )
Corporate selling, general and administrative
    18,367       -       1,686       -       3,142       13,539  
Stock-based compensation
    291       127       -       -       -       164  
Depreciation and amortization
    16,744       1,896       106       804       13,129       809  
Impairment of long-lived assets
    12,756       12,756       -       -       -       -  
Total operating expenses
    190,366       70,146       23,880       15,666       66,434       14,240  
     Operating income (loss)
    28,561       17,752       1,311       (3,420 )     27,490       (14,572 )
INTEREST INCOME
    148       -       -       -       -       148  
INTEREST EXPENSE
    40,209       705       -       -       3,838       35,666  
GAIN ON SALE-LEASEBACK
    (14,411 )     (14,411 )     -       -       -       -  
LOSS ON RETIREMENT OF DEBT
    7,083       -       -       -       -       7,083  
OTHER INCOME, net
    (2,895 )     (178 )     -       -       -       (2,717 )
(Loss) income before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries
    (1,277 )     31,636       1,311       (3,420 )     23,652       (54,456 )
PROVISION FOR (BENEFIT FROM) INCOME TAXES
    70       12,312       462       93       9,066       (21,863 )
CONSOLIDATED NET (LOSS ) INCOME
    (1,347 )     19,324       849       (3,513 )     14,586       (32,593 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    164       -       -       -       -       164  
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ (1,511 )   $ 19,324     $ 849     $ (3,513 )   $ 14,586     $ (32,757 )
                                                 
Adjusted EBITDA5
  $ 64,398     $ 32,992     $ 1,477     $ (2,580 )   $ 40,653     $ (8,144 )

 

 
 

 
 
 
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PAGE 10 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS
 

   
Six Months Ended June 30, 2016
 
   
(in thousands, unaudited, as reclassified2)
 
                                     
                                     
         
Radio
   
Reach
         
Cable
   
Corporate/
 
   
Consolidated
   
Broadcasting
   
Media
   
Digital
   
Television
   
Eliminations
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 231,807     $ 93,447     $ 28,902     $ 12,546     $ 97,026     $ (114 )
OPERATING EXPENSES:
                                               
Programming and technical
    64,696       17,824       10,893       4,433       31,546       -  
Selling, general and administrative
    78,541       38,619       11,719       8,073       20,243       (113 )
Corporate selling, general and administrative
    23,252       -       2,076       (28 )     5,317       15,887  
Stock-based compensation
    1,537       139       20       6       -       1,372  
Depreciation and amortization
    17,254       2,221       89       882       13,105       957  
Total operating expenses
    185,280       58,803       24,797       13,366       70,211       18,103  
     Operating income (loss)
    46,527       34,644       4,105       (820 )     26,815       (18,217 )
INTEREST INCOME
    123       -       -       -       -       123  
INTEREST EXPENSE
    41,169       671       -       -       3,838       36,660  
GAIN ON RETIREMENT OF DEBT
    (2,646 )     -       -       -       -       (2,646 )
OTHER INCOME, net
    (54 )     (5 )     -       -       -       (49 )
Income (loss) before provision for income taxes and noncontrolling interest in income of subsidiaries
    8,181       33,978       4,105       (820 )     22,977       (52,059 )
PROVISION FOR INCOME TAXES
    3,958       3,845       74       20       19       -  
CONSOLIDATED NET INCOME (LOSS)
    4,223       30,133       4,031       (840 )     22,958       (52,059 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    856       -       -       -       -       856  
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ 3,367     $ 30,133     $ 4,031     $ (840 )   $ 22,958     $ (52,915 )
                                                 
Adjusted EBITDA5
  $ 70,666     $ 37,476     $ 4,276     $ 77     $ 39,916     $ (11,079 )
 








 
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PAGE 11 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS

 
   
Three Months Ended September 30, 2016
 
   
(in thousands, unaudited, as reclassified2)
 
                                     
                                     
         
Radio
   
Reach
         
Cable
   
Corporate/
 
   
Consolidated
   
Broadcasting
   
Media
   
Digital
   
Television
   
Eliminations
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 110,856     $ 45,524     $ 12,153     $ 6,417     $ 46,811     $ (49 )
OPERATING EXPENSES:
                                               
Programming and technical
    32,093       7,348       5,343       2,325       17,077       -  
Selling, general and administrative
    35,806       18,144       4,292       4,265       9,154       (49 )
Corporate selling, general and administrative
    9,173       -       415       3       2,279       6,476  
Stock-based compensation
    782       49       11       -       -       722  
Depreciation and amortization
    8,469       1,035       59       417       6,559       399  
Total operating expenses
    86,323       26,576       10,120       7,010       35,069       7,548  
     Operating income (loss)
    24,533       18,948       2,033       (593 )     11,742       (7,597 )
INTEREST INCOME
    51       -       -       -       -       51  
INTEREST EXPENSE
    20,319       330       -       -       1,918       18,071  
OTHER INCOME, net
    (22 )     (16 )     -       -       -       (6 )
Income (loss) before provision for income taxes and noncontrolling interest in income of subsidiaries
    4,287       18,634       2,033       (593 )     9,824       (25,611 )
PROVISION FOR INCOME TAXES
    4,307       4,212       34       12       49       -  
CONSOLIDATED NET (LOSS) INCOME
    (20 )     14,422       1,999       (605 )     9,775       (25,611 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    403       -       -       -       -       403  
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ (423 )   $ 14,422     $ 1,999     $ (605 )   $ 9,775     $ (26,014 )
                                                 
Adjusted EBITDA5
  $ 34,883     $ 20,100     $ 2,103     $ (176 )   $ 18,305     $ (5,449 )
 
 
 
 
 
 
 
 
 
 
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PAGE 12 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS


   
Three Months Ended December 31, 2016
 
   
(in thousands, unaudited, as reclassified2)
 
                                     
                                     
         
Radio
   
Reach
         
Cable
   
Corporate/
 
   
Consolidated
   
Broadcasting
   
Media
   
Digital
   
Television
   
Eliminations
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 113,556     $ 47,173     $ 11,255     $ 7,268     $ 47,969     $ (109 )
OPERATING EXPENSES:
                                               
Programming and technical
    37,211       8,925       5,249       2,363       20,674       -  
Selling, general and administrative
    33,252       18,947       2,117       5,121       7,177       (110 )
Corporate selling, general and administrative
    15,107       -       1,162       19       2,445       11,481  
Stock-based compensation
    1,091       116       17       (4 )     -       962  
Depreciation and amortization
    8,524       1,093       62       395       6,560       414  
Impairment of long-lived assets
    1,287       1,287       -       -       -       -  
Total operating expenses
    96,472       30,368       8,607       7,894       36,856       12,747  
     Operating income (loss)
    17,084       16,805       2,648       (626 )     11,113       (12,856 )
INTEREST INCOME
    40       -       -       -       -       40  
INTEREST EXPENSE
    20,148       330       -       -       1,919       17,899  
OTHER INCOME, net
    (852 )     (379 )     -       -       -       (473 )
(Loss) income before provision for (benefit from) income taxes and noncontrolling interest in loss of subsidiaries
    (2,172 )     16,854       2,648       (626 )     9,194       (30,242 )
PROVISION FOR (BENEFIT FROM) INCOME TAXES
    1,315       (2,264 )     3,206       27       16,300       (15,954 )
CONSOLIDATED NET (LOSS) INCOME
    (3,487 )     19,118       (558 )     (653 )     (7,106 )     (14,288 )
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    (120 )     -       -       -       -       (120 )
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ (3,367 )   $ 19,118     $ (558 )   $ (653 )   $ (7,106 )   $ (14,168 )
                                                 
Adjusted EBITDA5
  $ 30,638     $ 19,485     $ 2,727     $ (216 )   $ 17,682     $ (9,040 )
 
 
 
 

 
 
 
 
 
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PAGE 13 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS

 
   
Year Ended December 31, 2016
 
   
(in thousands, unaudited, as reclassified2)
 
                                     
                                     
         
Radio
   
Reach
         
Cable
   
Corporate/
 
   
Consolidated
   
Broadcasting
   
Media
   
Digital
   
Television
   
Eliminations
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
  $ 456,219     $ 186,144     $ 52,310     $ 26,231     $ 191,806     $ (272 )
OPERATING EXPENSES:
                                               
Programming and technical
    134,000       34,096       21,486       9,121       69,297       -  
Selling, general and administrative
    147,599       75,711       18,127       17,459       36,575       (273 )
Corporate selling, general and administrative
    47,532       -       3,653       (6 )     10,040       33,845  
Stock-based compensation
    3,410       304       48       2       -       3,056  
Depreciation and amortization
    34,247       4,349       210       1,694       26,224       1,770  
Impairment of long-lived assets
    1,287       1,287       -       -       -       -  
Total operating expenses
    368,075       115,747       43,524       28,270       142,136       38,398  
     Operating income (loss)
    88,144       70,397       8,786       (2,039 )     49,670       (38,670 )
INTEREST INCOME
    214       -       -       -       -       214  
INTEREST EXPENSE
    81,636       1,331       -       -       7,675       72,630  
GAIN ON RETIREMENT OF DEBT
    (2,646 )     -       -       -       -       (2,646 )
OTHER INCOME, net
    (928 )     (401 )     -       -       -       (527 )
Income (loss) before provision for (benefit from) income taxes and noncontrolling interest in income of subsidiaries
    10,296       69,467       8,786       (2,039 )     41,995       (107,913 )
PROVISION FOR (BENEFIT FROM) INCOME TAXES
    9,580       (2,264 )     3,315       59       16,368       (7,898 )
CONSOLIDATED NET INCOME (LOSS)
    716       71,731       5,471       (2,098 )     25,627       (100,015 )
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    1,139       -       -       -       -       1,139  
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
  $ (423 )   $ 71,731     $ 5,471     $ (2,098 )   $ 25,627     $ (101,154 )
                                                 
Adjusted EBITDA5
  $ 136,186     $ 77,061     $ 9,106     $ (316 )   $ 75,903     $ (25,568 )

 
 
 
 
 
 
 
 
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PAGE 14 -- URBAN ONE, INC. REPORTS SECOND QUARTER RESULTS

Urban One, Inc. will hold a conference call to discuss its results for second fiscal quarter of 2017. The conference call is scheduled for Wednesday, August 02, 2017 at 10:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free 1-800-230-1085; international callers may dial direct (+1) 612-288-0329.

A replay of the conference call will be available from 12:00 p.m. EDT August 02, 2017 until 11:59 p.m. EDT August 05, 2017. Callers may access the replay by calling 1-800-475-6701; international callers may dial direct (+1) 320-365-3844. The replay Access Code is 425426. 

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), formerly known as Radio One, Inc., 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 one of the nation’s largest radio broadcasting companies, Urban One currently owns and/or operates 57 broadcast stations in 15 urban markets in the United States. Through its controlling interest in Reach Media, Inc. (blackamericaweb.com), the Company also operates syndicated programming including the Tom Joyner Morning Show, Russ Parr Morning Show, Rickey Smiley Morning Show, Get up Morning! with Erica Campbell, DL Hughley Show, Ed Lover Show, Willie Moore Jr Show, Nightly Spirit with Darlene McCoy, Reverend Al Sharpton Show. In addition to its radio and television broadcast assets, Urban One owns Interactive One, LLC (ionedigital.com), the largest digital resource for urban enthusiasts and Blacks, reaching millions each month through its Cassius and BHM Digital platforms. Additionally, One Solution, the Company’s branded content agency and studio combines the dynamics of Urban One’s holdings to provide brands with an integrated and effectively engaging marketing approach that reaches 82% of Black Americans throughout the country.
 

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 our historic use of station operating income, however, reflects our more diverse business and, therefore, may not be similar 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  Certain reclassifications have been made to prior year balances to conform to the current year presentation.  These reclassifications had no effect on any other previously reported or consolidated net income or loss or any other statement of operations, balance sheet or cash flow amounts.  Where applicable, these financial statements have been identified as “As Reclassified.”

3  For the three months ended June 30, 2017 and 2016, Urban One had 47,816,723 and 48,110,440 shares of common stock outstanding on a weighted average basis (basic), respectively.  For the six months ended June 30, 2017 and 2016, Urban One had 47,890,618 and 48,387,482 shares of common stock outstanding on a weighted average basis (basic), respectively.

4  For the three months ended June 30, 2017 and 2016, Urban One had 48,237,113 and 49,279,142 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock options), respectively.  For the six months ended June 30, 2017 and 2016, Urban One had 47,890,618 and 49,561,381 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock options), respectively.

5  “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, 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, gain on retirements of debt, and any discontinued operations. 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 our 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.