Urban One Inc UONEK

NAS: UONEK | ISIN: US91705J2042   14:31
1,875 USD (-2,09%)
(-2,09%)   14:31

Urban One, Inc. Reports Third Quarter Results

WASHINGTON, Nov. 3, 2022 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended September 30, 2022. Net revenue was approximately $121.4 million, an increase of 8.9% from the same period in 2021. The Company reported operating income of approximately $19.0 million for the three months ended September 30, 2022, compared to approximately $34.5 million for the three months ended September 30, 2021. Broadcast and digital operating income1 was approximately $50.8 million, an increase of 3.5% from the same period in 2021. Net income was approximately $4.2 million or $0.09 per share (basic) compared to $13.9 million or $0.27 per share (basic) for the same period in 2021. Adjusted EBITDA2 was approximately $44.3 million for the three months ended September 30, 2022, compared to approximately $42.7 million for the same period in 2021.

Alfred C. Liggins, III, Urban One's CEO and President stated, "Q3 was another very solid quarter, during which we grew both revenues and Adjusted EBITDA. Following a soft July for radio advertising, August and September rebounded and we finished the quarter +1.4% on a same station basis, and -1.3% excluding political.  Same station radio pacings for Q4 excluding digital are currently +16.0% including political and +0.1% excluding political. Layering in the recent Indianapolis acquisition should push radio revenues to a double-digit percentage increase for Q4. Political spending has steadily gathered momentum, and we anticipate net political advertising revenues to be between $12-$13 million, of which radio is $9-$10 million, which is significantly ahead of both our budget and the 2018 cycle. Our Cable TV business had another successful broadcast upfront season, and we were able to increase both our CPM's and total dollars committed. Our Digital segment posted growth of approximately 40% in both revenue and Adjusted EBITDA as demand for our audience and digital products remained strong. Our liquidity and leverage profile remained robust, and we continued to opportunistically repurchase our 7.375% bonds in the open market."

 

RESULTS OF OPERATIONS



















Three Months Ended September 30,


Nine Months Ended September 30,



2022


2021


2022


2021

STATEMENT OF OPERATIONS

(unaudited)


(unaudited)



(in thousands, except share data)


(in thousands, except share data)











NET REVENUE

$                        121,403


$                      111,463


$                352,562


$                     310,496


OPERATING EXPENSES









Programming and technical, excluding stock-based compensation

29,490


29,226


86,359


80,829


Selling, general and administrative, excluding stock-based compensation

41,071


33,102


111,845


94,568


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

9,904


12,271


30,768


31,544


Stock-based compensation

5,009


53


5,469


478


Depreciation and amortization 

2,505


2,336


7,391


6,925


Impairment of long-lived assets

14,450


-


31,383


-


Total operating expenses 

102,429


76,988


273,215


214,344


             Operating income 

18,974


34,475


79,347


96,152


INTEREST INCOME

415


13


474


185


INTEREST EXPENSE

15,310


15,896


47,123


49,794


(GAIN) LOSS ON RETIREMENT OF DEBT

(1,837)


-


(3,692)


6,949


OTHER INCOME, net

(2,021)


(2,120)


(13,732)


(6,166)


Income before provision for income taxes and noncontrolling
interest in income of subsidiaries 

7,937


20,712


50,122


45,760


PROVISION FOR INCOME TAXES

3,364


6,257


12,675


12,366


CONSOLIDATED NET INCOME

4,573


14,455


37,447


33,394


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

360


579


1,831


1,645


CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON
STOCKHOLDERS

$                            4,213


$                        13,876


$                  35,616


$                       31,749











AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS









CONSOLIDATED NET INCOME ATTRIBUTABLE TO COMMON
STOCKHOLDERS

$                            4,213


$                        13,876


$                  35,616


$                       31,749











Weighted average shares outstanding - basic3

46,625,484


51,190,105


49,504,238


49,816,663


Weighted average shares outstanding - diluted4

50,206,608


55,080,394


53,171,793


53,832,135

 










Three Months Ended September 30, 


Nine Months Ended September 30, 


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)









    Consolidated net income attributable to common stockholders (basic)

$                        0.09


$                      0.27


$                    0.72


$                        0.64









    Consolidated net income attributable to common stockholders (diluted)

$                        0.08


$                      0.25


$                    0.67


$                        0.59









SELECTED OTHER DATA








Broadcast and digital operating income 1

$                    50,842


$                  49,135


$              154,358


$                  135,099

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

41.9 %


44.1 %


43.8 %


43.5 %









Broadcast and digital operating income reconciliation:
















    Consolidated net income attributable to common stockholders

$                      4,213


$                  13,876


$                35,616


$                    31,749

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








Interest income

(415)


(13)


(474)


(185)

Interest expense

15,310


15,896


47,123


49,794

Provision for income taxes

3,364


6,257


12,675


12,366

Corporate selling, general and administrative expenses

9,904


12,271


30,768


31,544

Stock-based compensation

5,009


53


5,469


478

(Gain) loss on retirement of debt

(1,837)


-


(3,692)


6,949

Other income, net

(2,021)


(2,120)


(13,732)


(6,166)

Depreciation and amortization

2,505


2,336


7,391


6,925

Noncontrolling interest in income of subsidiaries

360


579


1,831


1,645

Impairment of long-lived assets

14,450


-


31,383


-

Broadcast and digital operating income

$                    50,842


$                  49,135


$              154,358


$                  135,099









Adjusted EBITDA2

$                    44,340


$                  42,734


$              133,852


$                  117,735









Adjusted EBITDA reconciliation:
















    Consolidated net income attributable to common stockholders

$                      4,213


$                  13,876


$                35,616


$                    31,749

Interest income

(415)


(13)


(474)


(185)

Interest expense

15,310


15,896


47,123


49,794

Provision for income taxes

3,364


6,257


12,675


12,366

Depreciation and amortization

2,505


2,336


7,391


6,925

EBITDA

$                    24,977


$                  38,352


$              102,331


$                  100,649

Stock-based compensation

5,009


53


5,469


478

(Gain) loss on retirement of debt

(1,837)


-


(3,692)


6,949

Other income, net

(2,021)


(2,120)


(13,732)


(6,166)

Noncontrolling interest in income of subsidiaries

360


579


1,831


1,645

Corporate development costs

414


2,508


1,433


4,841

Employment Agreement Award, incentive plan award expenses and other compensation

714


1,190


2,196


2,698

Contingent consideration from acquisition

-


-


-


280

Severance-related costs

146


80


388


653

Cost method investment income from MGM National Harbor

2,128


2,092


6,245


5,708

Impairment of long-lived assets

14,450


-


31,383


-

Adjusted EBITDA

$                    44,340


$                  42,734


$              133,852


$                  117,735

 


September 30, 2022


December 31, 2021

(unaudited) 





(in thousands)

SELECTED BALANCE SHEET DATA:



Cash and cash equivalents and restricted cash

$                         105,547


$                        152,218


Intangible assets, net

782,402


780,133


Total assets

1,250,696


1,261,108


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

763,200


818,616


Total liabilities

964,680


989,973


Total stockholders' equity

266,052


254,120


Redeemable noncontrolling interests

19,964


17,015








September 30, 2022


Applicable Interest Rate


(in thousands)



SELECTED LEVERAGE DATA:



7.375% senior secured notes due February 2028, net of issuance costs of
approximately $11.8 million (fixed rate)

$                         763,200


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.

The COVID-19 pandemic could have an impact on certain of our revenue and alternative revenue sources on a going forward basis.  While parts of the country are recovering, other parts could see a resurgence of the pandemic and this could impact our results of operations, particularly in our larger markets such as Atlanta, Baltimore, Charlotte, Dallas, Houston, Indianapolis, and Washington, D.C. During the early portion of the pandemic, a number of advertisers across a variety of significant advertising categories reduced advertising spend due to the pandemic. This has been particularly true within our radio segment which derives substantial revenue from local advertisers, including in areas such as Texas, Ohio and Georgia. The economies in these areas were hit particularly hard due to social distancing and other government interventions. Further, the COVID-19 pandemic has caused a shift in the way people work and commute, which in some instances has altered demand for our broadcasting radio advertising. Finally, the COVID-19 outbreak caused the postponement or cancellation of certain of our tent pole special events or otherwise impaired or limited ticket sales for such events. A resurgence could have a similar future impact. We do not carry business interruption insurance to compensate us for losses and such losses may continue to occur as a result of the ongoing and fluctuating nature of the COVID-19 pandemic. New outbreaks or surges in new cases due to variants in the markets in which we operate could have material impacts on our liquidity, operations including potential impairment of assets, and our financial results.  Likewise, our income from our investment in MGM National Harbor Casino has at times been negatively impacted by closures and limitations on occupancy imposed by state and local governmental authorities.

Net revenue consists of gross revenue, net of local and national agency and outside sales representative commissions. Agency and outside sales representative commissions are calculated based on a stated percentage applied to gross billing.

 



Three Months Ended September 30,










2022


2021


$ Change



% Change



  (Unaudited)









(in thousands)







Net Revenue:














Radio Advertising


$

45,081


$

43,089


$

1,992



4.6 %


Political Advertising



2,766



711



2,055



289.0 %


Digital Advertising



20,063



14,981



5,082



33.9 %


Cable Television Advertising



26,801



22,969



3,832



16.7 %


Cable Television Affiliate Fees



23,923



25,877



(1,954)



-7.6 %


Event Revenues & Other



2,769



3,836



(1,067)



-27.8 %
















Net Revenue (as reported)


$

121,403


$

111,463


$

9,940



8.9 %
















 

Net revenue increased to approximately $121.4 million for the quarter ended September 30, 2022, from approximately $111.5 million for the same period in 2021. Net revenues from our radio broadcasting segment increased 4.8% compared to the same period in 2021. Net revenue from our radio broadcasting segment, excluding political advertising, increased 2.2% compared to the same period in 2021. Same station net revenue from our radio broadcasting segment, excluding political advertising, decreased 1.3% compared to the same period in 2021. Reach Media's net revenues increased 1.3% for the three months ended September 30, 2022, compared to the same period in 2021. We recognized approximately $50.8 million and $48.8 million of revenue from our cable television segment during the three months ended September 30, 2022, and 2021, respectively, due primarily to increased advertising sales. Net revenue for our digital segment increased approximately $6.0 million for the three months ended September 30, 2022, compared to the same period in 2021 primarily from higher direct revenues.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $80.5 million for the quarter ended September 30, 2022, up 7.9% from the approximately $74.6 million incurred for the comparable quarter in 2021. The overall operating expense increase was driven by higher programming and technical expenses and higher selling, general and administrative expenses, partially offset by lower corporate selling, general and administrative expenses.

As a result of increases in revenue, certain operating expenses have also increased including approximately $1.9 million in employee compensation expenses, $2.4 million in variable expenses, $525,000 in travel, entertainment and office expenses, $1.2 million in contract labor, talent costs and consulting fees, and $3.3 million in marketing, promotions and event spending. These increased expenses were partially offset by a decrease of approximately $1.1 million in content amortization and a decrease of approximately $2.1 million in corporate development costs. As a result of the acquisition and disposition of stations in Indianapolis on August 31, 2022, expenses for the cluster increased $992,000 for the three months ended September 30, 2022 compared to the same period in 2021. 

Depreciation and amortization expense increased to approximately $2.5 million for the quarter ended September 30, 2022, compared to approximately $2.3 million for the quarter ended September 30, 2021.

Interest expense decreased to approximately $15.3 million for the quarter ended September 30, 2022 compared to approximately $15.9 million for the quarter ended September 30, 2021. The Company made cash interest payments of approximately $29.9 million for the quarter ended September 30, 2022, compared to cash interest payments of approximately $31.6 million on its outstanding debt for the quarter ended September 30, 2021. During the quarter ended September 30, 2022, the Company repurchased approximately $25.0 million of its 2028 Notes at an average price of approximately 91.1% of par, resulting in a net gain on retirement of debt of approximately $1.8 million for the quarter ended September 30, 2022.

The impairment of long-lived assets for the three months ended September 30, 2022, was related to a non-cash impairment charge of approximately $14.5 million associated with our Atlanta, Charlotte, Dallas, Houston, Philadelphia, Raleigh and Richmond radio market broadcasting licenses.

During the three months ended September 30, 2022, we recorded a provision for income taxes of approximately $3.4 million compared to approximately $6.3 million for the three months ended September 30, 2021. The decrease in the provision for income taxes was primarily due to the application of the estimated annual effective tax rate for the year to date and pre-tax income of approximately $7.9 million during the quarter, and discrete tax benefits of $131,000 primarily related to statutory state tax rate changes. The tax provision resulted in an effective tax rate of 42.4% and 30.2% for the three months ended September 30, 2022 and 2021, respectively. The Company paid income taxes of $247,000 for the quarter ended September 30, 2022 and did not pay taxes for the quarter ended September 30, 2021.

Other income, net, was approximately $2.0 million and $2.1 million for the three months ended September 30, 2022 and 2021, respectively. We recognized other income in the amount of approximately $2.1 million for each of the three months ended September 30, 2022 and 2021, respectively, related to our MGM investment.

Other pertinent financial information includes capital expenditures of approximately $1.4 million and $1.7 million for the quarters ended September 30, 2022 and 2021, respectively. 

During the three months ended September 30, 2022, the Company did not repurchase any shares of Class A common stock and repurchased 100,803 shares of Class D common stock in the amount of $439,000. During the three months ended September 30, 2021, the Company did not repurchase any shares of Class A common stock and repurchased 6,715 shares of Class D common stock in the amount of $39,000.

The Company, in connection with its prior 2009 stock option and restricted stock plan and its current 2019 Equity and Performance Incentive Plan (the "2019 Plan"), is authorized to purchase shares of Class D common stock to satisfy employee tax obligations in connection with the vesting of share grants under the plan. During the three months ended September 30, 2022, the Company executed a Stock Vest Tax Repurchase of 325,872 shares of Class D Common Stock in the amount of approximately $1.4 million. During the three months ended September 30, 2021, the Company executed a Stock Vest Tax Repurchase of 3,285 shares of Class D Common Stock in the amount of $18,000.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three and nine months ended September 30, 2022 and 2021 are included.

 






Three Months Ended September 30, 2022






(in thousands, unaudited)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Digital

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

121,403

$

40,407

$

10,071

$

20,986

$

50,784

$

(845)


OPERATING EXPENSES:














Programming and technical 


29,490


9,801


3,701


3,028


13,343


(383)


Selling, general and administrative


41,071


17,842


2,036


10,379


11,276


(462)


Corporate selling, general and administrative


9,904


-


671


-


1,202


8,031


Stock-based compensation


5,009


4


566


1


309


4,129


Depreciation and amortization


2,505


837


50


329


955


334


Impairment of long-lived assets


14,450


14,450


-


-


-


-


Total operating expenses


102,429


42,934


7,024


13,737


27,085


11,649


           Operating income (loss)


18,974


(2,527)


3,047


7,249


23,699


(12,494)


INTEREST INCOME


415


-


-


-


-


415


INTEREST EXPENSE


15,310


50


-


79


1,919


13,262


GAIN ON RETIREMENT OF DEBT


(1,837)


-


-


-


-


(1,837)


OTHER (INCOME) EXPENSE, net


(2,021)


120


-


-


-


(2,141)


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


7,937


(2,697)


3,047


7,170


21,780


(21,363)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


3,364


3,449


1,673


-


8,379


(10,137)


CONSOLIDATED NET INCOME (LOSS)  


4,573


(6,146)


1,374


7,170


13,401


(11,226)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


360


-


-


-


-


360


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

4,213

$

(6,146)

$

1,374

$

7,170

$

13,401

$

(11,586)


















Adjusted EBITDA2

$

44,340

$

12,851

$

3,663

$

7,579

$

24,963

$

(4,716)

 






Three Months Ended September 30, 2021






(in thousands, unaudited)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Digital

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

111,463

$

38,541

$

9,939

$

14,981

$

48,846

$

(844)


OPERATING EXPENSES:














Programming and technical 


29,226


9,196


3,435


2,834


14,125


(364)


Selling, general and administrative


33,102


16,156


2,220


6,761


8,450


(485)


Corporate selling, general and administrative


12,271


-


626


1


2,072


9,572


Stock-based compensation


53


4


-


-


3


46


Depreciation and amortization


2,336


814


49


307


932


234


Total operating expenses


76,988


26,170


6,330


9,903


25,582


9,003


           Operating income (loss)


34,475


12,371


3,609


5,078


23,264


(9,847)


INTEREST INCOME


13


-


-


-


-


13


INTEREST EXPENSE


15,896


43


-


79


1,919


13,855


OTHER INCOME, net


(2,120)


(14)


-


-


-


(2,106)


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


20,712


12,342


3,609


4,999


21,345


(21,583)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


6,257


3,789


1,063


-


6,436


(5,031)


CONSOLIDATED NET INCOME (LOSS)  


14,455


8,553


2,546


4,999


14,909


(16,552)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


579


-


-


-


-


579


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

13,876

$

8,553

$

2,546

$

4,999

$

14,909

$

(17,131)


















Adjusted EBITDA2

$

42,734

$

13,240

$

3,631

$

5,385

$

24,204

$

(3,726)

 






Nine Months Ended September 30, 2022






(in thousands, unaudited)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting

Media


Digital

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

352,562

$

109,091

$

31,194

$

54,353

$

160,668

$

(2,744)


OPERATING EXPENSES:














Programming and technical 


86,359


27,797


10,841


9,605


39,263


(1,147)


Selling, general and administrative


111,845


49,001


6,058


24,876


33,506


(1,596)


Corporate selling, general and administrative


30,768


-


1,985


7


4,425


24,351


Stock-based compensation


5,469


5


565


1


635


4,263


Depreciation and amortization


7,391


2,477


143


995


2,853


923


Impairment of long-lived assets


31,383


31,383


-


-


-


-


Total operating expenses


273,215


110,663


19,592


35,484


80,682


26,794


           Operating income (loss)


79,347


(1,572)


11,602


18,869


79,986


(29,538)


INTEREST INCOME


474


-


-


-


-


474


INTEREST EXPENSE


47,123


149


-


238


5,757


40,979


GAIN ON RETIREMENT OF DEBT


(3,692)


-


-


-


-


(3,692)


OTHER (INCOME) EXPENSE, net


(13,732)


128


-


-


-


(13,860)


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


50,122


(1,849)


11,602


18,631


74,229


(52,491)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


12,675


(1,819)


3,973


-


22,480


(11,959)


CONSOLIDATED NET INCOME (LOSS)  


37,447


(30)


7,629


18,631


51,749


(40,532)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


1,831


-


-


-


-


1,831


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

35,616

$

(30)

$

7,629

$

18,631

$

51,749

$

(42,363)


















Adjusted EBITDA2

$

133,852

$

32,421

$

12,310

$

19,870

$

83,474

$

(14,223)

 






Nine Months Ended September 30, 2021






(in thousands, unaudited)








































Radio  


Reach




Cable


Corporate/






Consolidated

Broadcasting


Media


Digital

Television

Eliminations







STATEMENT OF OPERATIONS:






























NET REVENUE

$

310,496

$

101,793

$

27,169

$

40,466

$

143,549

$

(2,481)


OPERATING EXPENSES:














Programming and technical 


80,829


26,297


10,232


8,061


37,321


(1,082)


Selling, general and administrative


94,568


44,726


5,346


18,386


27,504


(1,394)


Corporate selling, general and administrative


31,544


-


1,879


2


4,822


24,841


Stock-based compensation


478


31


-


-


74


373


Depreciation and amortization


6,925


2,335


160


945


2,799


686


Total operating expenses


214,344


73,389


17,617


27,394


72,520


23,424


           Operating income (loss)


96,152


28,404


9,552


13,072


71,029


(25,905)


INTEREST INCOME


185


-


-


-


-


185


INTEREST EXPENSE


49,794


131


-


237


5,756


43,670


LOSS ON RETIREMENT OF DEBT


6,949


-


-


-


-


6,949


OTHER INCOME, net


(6,166)


(420)


-


-


-


(5,746)


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


45,760


28,693


9,552


12,835


65,273


(70,593)


PROVISION FOR (BENEFIT FROM) INCOME TAXES


12,366


7,499


2,546


-


17,401


(15,080)


CONSOLIDATED NET INCOME (LOSS)  


33,394


21,194


7,006


12,835


47,872


(55,513)


NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS


1,645


-


-


-


-


1,645


NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

31,749

$

21,194

$

7,006

$

12,835

$

47,872

$

(57,158)


















Adjusted EBITDA2

$

117,735

$

31,011

$

9,771

$

14,348

$

74,018

$

(11,413)

 

Urban One, Inc. will hold a conference call to discuss its results for the third fiscal quarter of 2022. The conference call is scheduled for Thursday, November 03, 2022 at 10:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free 1-877-226-8216; international callers may dial direct (+1) 409-207-6983.  The Access Code is 9721643.

A replay of the conference call will be available from 1:00 p.m. EDT November 03, 2022 until 11:55 p.m. EST November 06, 2022. 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 1399699.

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 September 30, 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. We also have invested in a minority ownership interest in MGM National Harbor, a gaming resort located in Prince George's County, Maryland. Through our national multi-media operations, we provide advertisers with a unique and powerful delivery mechanism to the African-American and urban audiences.

Notes:

  1. "Broadcast and digital operating income" consists of net (loss) income before depreciation and amortization, corporate selling, general and administrative expenses, stock-based compensation, income taxes, noncontrolling interest in income (loss) of subsidiaries, interest expense, impairment of long-lived assets, other (income) expense, loss (gain) on retirement of debt, gain on sale-leaseback and interest income. Broadcast and digital operating income is not a measure of financial performance under generally accepted accounting principles. Nevertheless, broadcast and digital operating income is a significant measure used by our management to evaluate the operating performance of our core operating segments because broadcast and digital operating income provides helpful information about our results of operations apart from expenses associated with our fixed assets and long-lived intangible assets, income taxes, investments, debt financings and retirements, overhead, stock-based compensation, impairment charges, and asset sales. Our measure of broadcast and digital operating income is similar to industry use of station operating income; however, it reflects our more diverse business and therefore is not completely analogous to "station operating income" or other similarly titled measures used by other companies. Broadcast and digital operating income does not purport to represent operating income or 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, gain on sale-leaseback, Employment Agreement and incentive plan award expenses and other compensation, contingent consideration from acquisition, corporate development costs, severance-related costs, cost investment income, less (2) other income and interest income. Net income before interest income, interest expense, income taxes, depreciation and amortization is commonly referred to in our business as "EBITDA." Adjusted EBITDA and EBITDA are not measures of financial performance under generally accepted accounting principles. However, we believe Adjusted EBITDA is often a useful measure of a company's operating performance and is a significant measure used by our management to evaluate the operating performance of our business because Adjusted EBITDA excludes charges for depreciation, amortization and interest expense that have resulted from our acquisitions and debt financing, our taxes, impairment charges, and gain on retirements of debt. Accordingly, we believe that Adjusted EBITDA provides useful information about the operating performance of our business, apart from the expenses associated with our fixed assets and long-lived intangible assets or capital structure. EBITDA is frequently used as one of the measures for comparing businesses in the broadcasting industry, although our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies, including, but not limited to the fact that our definition includes the results of all four segments (radio broadcasting, Reach Media, digital and cable television). Adjusted EBITDA and EBITDA do not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as alternatives to those measurements as an indicator of our performance. A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA has been provided in this release.

  3. For the three months ended September 30, 2022 and 2021, Urban One had 46,625,484 and 51,190,105 shares of common stock outstanding on a weighted average basis (basic), respectively.  For the nine months ended September 30, 2022 and 2021, Urban One had 49,504,238 and 49,816,663 shares of common stock outstanding on a weighted average basis (basic), respectively. 

  4. For the three months ended September 30, 2022 and 2021, Urban One had 50,206,608 and 55,080,394 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively.  For the nine months ended September 30, 2022 and 2021, Urban One had 53,171,793 and 53,832,135 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. 

 

Cision View original content:https://www.prnewswire.com/news-releases/urban-one-inc-reports-third-quarter-results-301666933.html

SOURCE Urban One, Inc.

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