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


URBAN ONE, INC. REPORTS THIRD QUARTER RESULTS

Washington, DC: - Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended September 30, 2017.  Net revenue was approximately $112.1 million, an increase of 1.1% from the same period in 2016. Broadcast and digital operating income1 was approximately $40.7 million, a decrease of 5.3% from the same period in 2016. The Company reported operating income of approximately $3.5 million for the three months ended September 30, 2017, compared to $24.5 million for the same period in 2016. Net loss was approximately $7.9 million or $0.17 per share (basic) compared to net loss of $423,000 or $0.01 per share (basic) for the same period in 2016.

Alfred C. Liggins, III, Urban One's CEO and President stated, "Our radio segment core revenues have stabilized, and for the third quarter we outperformed our markets by 130 basis points according to Miller Kaplan data. Of our four largest clusters, Atlanta, Baltimore and Houston all outperformed their respective markets. For the fourth quarter, radio division core revenues are pacing up approximately 1.0%, which excludes the impact of political advertising revenues. The radio bottom line was adversely impacted by higher royalty expenses, which was the result of a favorable true-up in the prior year plus the additional expense associated with Global Music Rights. Our digital revenues were boosted by the integration of BHM, which produced positive Adjusted EBITDA of approximately $0.5 million in the quarter. Cable TV advertising revenues continued to be impacted by soft ratings, although there was a significant sequential improvement from Q2, as total day and prime household ratings were up 3.0% and 7.8%, respectively, while total day and prime Persons 25-54 demographic ratings were up 11.4% and 20.4%, respectively, against the second quarter. Our MGM investment produced approximately $1.5 million of Adjusted EBITDA, and is performing in line with expectations. During the quarter we repurchased $20.0 million of our 2020 Notes, which re-affirms our commitment to de-leveraging the Company over time."














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PAGE 2 -- URBAN ONE, INC. REPORTS THIRD QUARTER RESULTS
 
 
RESULTS OF OPERATIONS
                       
                         
   
Three Months Ended September 30,
   
 Nine Months Ended September 30,
 
   
2017
   
2016
   
2017
   
2016
 
STATEMENT OF OPERATIONS
 
(unaudited)
   
(unaudited)
   
(unaudited)
   
(unaudited)
 
   
(in thousands, except share data)
   
(in thousands, except share data)
 
                         
NET REVENUE
 
$
112,078
   
$
110,856
   
$
331,005
   
$
342,663
 
OPERATING EXPENSES
                               
Programming and technical, excluding stock-based compensation
   
34,892
     
32,093
     
99,798
     
96,789
 
Selling, general and administrative, excluding stock-based compensation
   
36,525
     
35,806
     
113,827
     
114,347
 
Corporate selling, general and administrative, excluding stock-based compensation
   
10,279
     
9,173
     
28,646
     
32,425
 
Stock-based compensation
   
1,655
     
782
     
1,946
     
2,319
 
Depreciation and amortization
   
8,804
     
8,469
     
25,548
     
25,723
 
Impairment of long-lived assets
   
16,392
     
-
     
29,148
     
-
 
Total operating expenses
   
108,547
     
86,323
     
298,913
     
271,603
 
    Operating income
   
3,531
     
24,533
     
32,092
     
71,060
 
INTEREST INCOME
   
12
     
51
     
160
     
174
 
INTEREST EXPENSE
   
19,938
     
20,319
     
60,147
     
61,488
 
GAIN ON SALE-LEASEBACK
   
-
     
-
     
(14,411
)
   
-
 
(GAIN) LOSS ON RETIREMENT OF DEBT
   
(690
)
   
-
     
6,393
     
(2,646
)
OTHER (INCOME), net
   
(1,850
)
   
(22
)
   
(4,745
)
   
(76
)
    (Loss) income before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries
   
(13,855
)
   
4,287
     
(15,132
)
   
12,468
 
(BENEFIT FROM) PROVISION FOR INCOME TAXES
   
(6,037
)
   
4,307
     
(5,967
)
   
8,265
 
CONSOLIDATED NET (LOSS) INCOME
   
(7,818
)
   
(20
)
   
(9,165
)
   
4,203
 
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
   
68
     
403
     
232
     
1,259
 
CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
 
$
(7,886
)
 
$
(423
)
 
$
(9,397
)
 
$
2,944
 
                                 
AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS
                         
CONSOLIDATED NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
 
$
(7,886
)
 
$
(423
)
 
$
(9,397
)
 
$
2,944
 
                                 
Weighted average shares outstanding - basic3
   
46,681,585
     
47,481,004
     
47,487,607
     
48,066,267
 
Weighted average shares outstanding - diluted4
   
46,681,585
     
47,481,004
     
47,487,607
     
49,240,165
 
 
 
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PAGE 3 -- URBAN ONE, INC. REPORTS THIRD QUARTER RESULTS


   
Three Months Ended September 30,
   
  Nine Months Ended September 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 (loss) income attributable to common stockholders (basic)
 
$
(0.17
)
 
$
(0.01
)
 
$
(0.20
)
 
$
0.06
 
                                 
    Consolidated net (loss) income attributable to common stockholders (diluted)
 
$
(0.17
)
 
$
(0.01
)
 
$
(0.20
)
 
$
0.06
 
                                 
SELECTED OTHER DATA
                               
    Broadcast and digital operating income 1
 
$
40,661
   
$
42,957
   
$
117,380
   
$
131,527
 
    Broadcast and digital operating income margin (% of net revenue)
   
36.3
%
   
38.8
%
   
35.5
%
   
38.4
%
                                 
Broadcast and digital operating income reconciliation:
                         
                                 
    Consolidated net (loss) income attributable to common stockholders
 
$
(7,886
)
 
$
(423
)
 
$
(9,397
)
 
$
2,944
 
Add back non-broadcast and digital operating income items included in consolidated net (loss) income:
 
        Interest income
   
(12
)
   
(51
)
   
(160
)
   
(174
)
        Interest expense
   
19,938
     
20,319
     
60,147
     
61,488
 
        (Benefit from) provision for income taxes
   
(6,037
)
   
4,307
     
(5,967
)
   
8,265
 
        Corporate selling, general and administrative expenses
   
10,279
     
9,173
     
28,646
     
32,425
 
        Stock-based compensation
   
1,655
     
782
     
1,946
     
2,319
 
        Gain on sale-leaseback
   
-
     
-
     
(14,411
)
   
-
 
        (Gain) loss on retirement of debt
   
(690
)
   
-
     
6,393
     
(2,646
)
        Other (income), net
   
(1,850
)
   
(22
)
   
(4,745
)
   
(76
)
        Depreciation and amortization
   
8,804
     
8,469
     
25,548
     
25,723
 
        Noncontrolling interest in income of subsidiaries
   
68
     
403
     
232
     
1,259
 
        Impairment of long-lived assets
   
16,392
     
-
     
29,148
     
-
 
        Broadcast and digital operating income
 
$
40,661
   
$
42,957
   
$
117,380
   
$
131,527
 
                                 
Adjusted EBITDA5
 
$
33,954
   
$
34,883
   
$
98,353
   
$
105,549
 
                                 
Adjusted EBITDA reconciliation:
                               
                                 
    Consolidated net (loss) income attributable to common stockholders:
 
$
(7,886
)
 
$
(423
)
 
$
(9,397
)
 
$
2,944
 
        Interest income
   
(12
)
   
(51
)
   
(160
)
   
(174
)
        Interest expense
   
19,938
     
20,319
     
60,147
     
61,488
 
        (Benefit from) provision for income taxes
   
(6,037
)
   
4,307
     
(5,967
)
   
8,265
 
        Depreciation and amortization
   
8,804
     
8,469
     
25,548
     
25,723
 
        EBITDA
 
$
14,807
   
$
32,621
   
$
70,171
   
$
98,246
 
        Stock-based compensation
   
1,655
     
782
     
1,946
     
2,319
 
        Gain on sale-leaseback
   
-
     
-
     
(14,411
)
   
-
 
        (Gain) loss on retirement of debt
   
(690
)
   
-
     
6,393
     
(2,646
)
        Other (income), net
   
(1,850
)
   
(22
)
   
(4,745
)
   
(76
)
        Noncontrolling interest in income of subsidiaries
   
68
     
403
     
232
     
1,259
 
        Employment Agreement Award and incentive plan award expenses
   
1,391
     
1,027
     
3,875
     
5,802
 
        Severance-related costs
   
651
     
72
     
1,254
     
645
 
        Cost method investment income
   
1,530
     
-
     
4,490
     
-
 
        Impairment of long-lived assets
   
16,392
     
-
     
29,148
     
-
 
        Adjusted EBITDA
 
$
33,954
   
$
34,883
   
$
98,353
   
$
105,549
 
 
 
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PAGE 4 -- URBAN ONE, INC. REPORTS THIRD QUARTER RESULTS

 
    
September 30, 2017
   
December 31, 2016
 
    
(unaudited)
       
    
(in thousands)
 
SELECTED BALANCE SHEET DATA:
           
Cash and cash equivalents and restricted cash
 
$
52,947
   
$
46,781
 
Intangible assets, net
   
978,348
     
1,018,333
 
Total assets
   
1,325,616
     
1,358,786
 
Total debt (including current portion, net of original issue discount and issuance costs)
   
990,805
     
1,006,236
 
Total liabilities
   
1,395,947
     
1,417,502
 
Total stockholders' deficit
   
(80,202
)
   
(71,126
)
Redeemable noncontrolling interest
   
9,871
     
12,410
 
                 
    
September 30, 2017
   
Applicable Interest Rate
 
    
(in thousands)
         
SELECTED LEVERAGE DATA:
               
2017 Credit Facility, net of original issue discount and issuance costs of approximately $8.4 million (subject to variable rates) (a)
 
$
339,895
     
5.34
%
9.25% senior subordinated notes due February 2020, net of original issue discount and issuance costs of approximately $1.6 million (fixed rate)
   
293,406
     
9.25
%
7.375% senior secured notes due April 2022, net of original issue discount and issuance costs of approximately $4.4 million (fixed rate)
   
345,632
     
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 THIRD 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 September 30,
         
 
2017   2016  
$ Change
 
% Change
 
 
(Unaudited)
         
 
(in thousands)   
       
Net Revenue:
               
Radio Advertising
 
$
50,881
   
$
52,475
   
$
(1,594
)
   
-3.0
%
Political Advertising
   
243
     
477
     
(234
)
   
-49.1
%
Digital Advertising
   
8,107
     
6,417
     
1,690
     
26.3
%
Cable Television Advertising
   
20,791
     
20,831
     
(40
)
   
-0.2
%
Cable Television Affiliate Fees
   
26,558
     
25,822
     
736
     
2.9
%
Event Revenues & Other
   
5,498
     
4,834
     
664
     
13.7
%
                                 
Net Revenue (as reported)
 
$
112,078
   
$
110,856
   
$
1,222
     
1.1
%
 
 
Net revenue increased to approximately $112.1 million for the quarter ended September 30, 2017, from approximately $110.9 million for the same period in 2016, an increase of 1.1%. Net revenues from our radio broadcasting segment decreased 0.7% compared to the same period in 2016. We experienced net revenue growth most significantly in our Atlanta, Cleveland, Detroit, Indianapolis and Richmond markets with revenue declines most significantly in our Columbus, Dallas, Houston, Raleigh and Washington DC markets. We recognized approximately $48.4 million of revenue from our cable television segment during the three months ended September 30, 2017, compared to approximately $46.8 million for the same period in 2016, with the increase primarily from revenue from certain international licensing contracts of approximately $1.0 million and an increase in affiliate fees.  Net revenue from our Reach Media segment decreased approximately $1.7 million for the quarter ended September 30, 2017, compared to the same period in 2016 due primarily to weaker demand. Finally, net revenues for our digital segment increased approximately $1.7 million for the three months ended September 30, 2017, compared to the same period in 2016, primarily from performance from our new digital acquisition.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $81.7 million for the quarter ended September 30, 2017, up 6.0% from the approximately $77.1 million incurred for the comparable quarter in 2016. The operating expense increase was primarily driven by a combined increase of approximately $2.6 million of higher programming and technical expenses at our radio broadcasting and digital segments.   The increase at our radio broadcasting segment relates primarily to a true-up of music licensing costs recorded in the prior period.  Our digital segment generated an increase in programming and technical expenses due to our new digital acquisition and our increased investment in video content, primarily related to increased headcount contributing to higher payroll costs. There was also an increase in corporate selling, general and administrative expenses.

Depreciation and amortization expense increased to approximately $8.8 million compared to approximately $8.5 million for the quarter ended September 30, 2016. The increase was primarily due to amortization of newly-acquired intangible assets.

Interest expense decreased to approximately $19.9 million for the quarter ended September 30, 2017, compared to approximately $20.3 million for the same period in 2016. The Company made cash interest payments of approximately $20.2 million on its outstanding debt for the quarter ended September 30, 2017, compared to cash interest payments of approximately $19.8 million on all outstanding instruments for the quarter ended September 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 THIRD QUARTER RESULTS
 
 
The gain on retirement of debt of $690,000 for the three months ended September 30, 2017, 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 September 30, 2017, of approximately $16.4 million, was related to a non-cash impairment charge recorded to reduce the carrying value of our Columbus and Houston radio broadcasting licenses.

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 September 30, 2017, we recorded a benefit from income taxes of approximately $6.0 million on a pre-tax loss from continuing operations of approximately $13.9 million. The provision for income taxes for the three months ended September 30, 2016 of approximately $4.3 million was primarily attributable to the deferred tax liability for indefinite-lived intangible assets, based on a discrete tax provision. The Company paid $66,000 and $39,000 in taxes for the quarters ended September 30, 2017 and 2016, respectively.

Other income, net increased to approximately $1.9 million for the three months ended September 30, 2017, compared to $22,000 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 September 30, 2017, versus the same period in 2016.

Other pertinent financial information includes capital expenditures of $964,000 and approximately $1.6 million for the quarters ended September 30, 2017 and 2016, respectively.  As of September 30, 2017, the Company had total debt (net of cash and restricted cash balances and original issue discount) of approximately $937.9 million. During the three months ended September 30, 2017, the Company did not repurchase any Class A common stock and repurchased 672,366 shares of Class D common stock in the amount of approximately $1.3 million.  During the three months ended September 30, 2016, the Company did not repurchase any Class A common stock and repurchased 619,418 shares of Class D common stock in the amount of approximately $1.9 million. During the nine months ended September 30, 2017, the Company did not repurchase any Class A common stock and repurchased 1,726,656 shares of Class D common stock in the amount of approximately $3.4 million.  During the nine months ended September 30, 2016, the Company repurchased 1,255,592 shares of Class D common stock in the aggregate amount of approximately $3.0 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 the three months ended September 30, 2017, the Company repurchased 35,370 shares of Class D Common Stock, to satisfy employee tax obligations, in the amount of $67,000.  During the nine months ended September 30, 2017, the Company repurchased 360,172 shares of Class D Common Stock, to satisfy employee tax obligations, in the amount of approximately $1.0 million.  Comparatively, during the nine months ended September 30, 2016, the Company repurchased 330,111 shares of Class D common stock, to satisfy employee tax obligations, in the amount of $568,000. During the three months ended September 30, 2016, the Company did not repurchase any shares to satisfy tax obligations.

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 are now a part of a newly formed reportable segment called "Digital". This new reportable segment better reflects the manner in which we manage our business and better reflects our operational structure. Segment data for the three and nine months ended September 30, 2016 has been reclassified to conform to the current period presentation. These reclassifications occurred among all segments.

The Company previously presented the reclassified third quarter 2016 results in the press release dated August 2, 2017.  The reclassified results for the nine months of 2016 are 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 nine months ended September 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 THIRD QUARTER RESULTS
 
 
   
Three Months Ended September 30, 2017   
 
   
(in thousands, unaudited)         
 
                                     
                                     
         
Radio
   
Reach
         
Cable
   
Corporate/
 
   
Consolidated
   
Broadcasting
   
Media
   
Digital
   
Television
   
Eliminations
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
 
$
112,078
   
$
45,184
   
$
10,491
   
$
8,107
   
$
48,374
   
$
(78
)
OPERATING EXPENSES:
                                               
Programming and technical
   
34,892
     
8,920
     
5,441
     
3,396
     
17,156
     
(21
)
Selling, general and administrative
   
36,525
     
18,845
     
3,644
     
4,778
     
9,314
     
(56
)
Corporate selling, general and administrative
   
10,279
     
-
     
927
     
4
     
2,355
     
6,993
 
Stock-based compensation
   
1,655
     
122
     
6
     
-
     
204
     
1,323
 
Depreciation and amortization
   
8,804
     
923
     
52
     
812
     
6,567
     
450
 
Impairment of long-lived assets
   
16,392
     
16,392
     
-
     
-
     
-
     
-
 
Total operating expenses
   
108,547
     
45,202
     
10,070
     
8,990
     
35,596
     
8,689
 
      Operating income (loss)
   
3,531
     
(18
)
   
421
     
(883
)
   
12,778
     
(8,767
)
INTEREST INCOME
   
12
     
-
     
-
     
-
     
-
     
12
 
INTEREST EXPENSE
   
19,938
     
376
     
-
     
-
     
1,919
     
17,643
 
GAIN ON RETIREMENT OF DEBT
   
(690
)
   
-
     
-
     
-
     
-
     
(690
)
OTHER INCOME, net
   
(1,850
)
   
(210
)
   
-
     
-
     
-
     
(1,640
)
(Loss) income before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries
   
(13,855
)
   
(184
)
   
421
     
(883
)
   
10,859
     
(24,068
)
(BENEFIT FROM) PROVISION FOR INCOME TAXES
   
(6,037
)
   
(21
)
   
189
     
(13
)
   
4,035
     
(10,227
)
CONSOLIDATED NET (LOSS) INCOME
   
(7,818
)
   
(163
)
   
232
     
(870
)
   
6,824
     
(13,841
)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
   
68
     
-
     
-
     
-
     
-
     
68
 
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
 
$
(7,886
)
 
$
(163
)
 
$
232
   
$
(870
)
 
$
6,824
   
$
(13,909
)
                                                 
Adjusted EBITDA5
 
$
33,954
   
$
17,547
   
$
634
   
$
(60
)
 
$
19,858
   
$
(4,025
)


-MORE-
 


 
PAGE 8 -- URBAN ONE, INC. REPORTS THIRD 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
)
 
-MORE-
 
 

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

 
   
Nine Months Ended September 30, 2017   
 
   
(in thousands, unaudited)
 
                                     
                                     
         
Radio
   
Reach
         
Cable
   
Corporate/
 
   
Consolidated
   
Broadcasting
   
Media
   
Digital
   
Television
   
Eliminations
 
                                     
STATEMENT OF OPERATIONS:
                                   
                                     
NET REVENUE
 
$
331,005
   
$
133,082
   
$
35,682
   
$
20,353
   
$
142,298
   
$
(410
)
OPERATING EXPENSES:
                                               
Programming and technical
   
99,798
     
26,058
     
16,267
     
9,509
     
48,013
     
(49
)
Selling, general and administrative
   
113,827
     
57,074
     
14,906
     
13,526
     
28,621
     
(300
)
Corporate selling, general and administrative
   
28,646
     
-
     
2,613
     
5
     
5,496
     
20,532
 
Stock-based compensation
   
1,946
     
249
     
6
     
-
     
204
     
1,487
 
Depreciation and amortization
   
25,548
     
2,819
     
158
     
1,616
     
19,696
     
1,259
 
Impairment of long-lived assets
   
29,148
     
29,148
     
-
     
-
     
-
     
-
 
Total operating expenses
   
298,913
     
115,348
     
33,950
     
24,656
     
102,030
     
22,929
 
      Operating income (loss)
   
32,092
     
17,734
     
1,732
     
(4,303
)
   
40,268
     
(23,339
)
INTEREST INCOME
   
160
     
-
     
-
     
-
     
-
     
160
 
INTEREST EXPENSE
   
60,147
     
1,082
     
-
     
-
     
5,757
     
53,308
 
GAIN ON SALE-LEASEBACK
   
(14,411
)
   
(14,411
)
   
-
     
-
     
-
     
-
 
LOSS ON RETIREMENT OF DEBT
   
6,393
     
-
     
-
     
-
     
-
     
6,393
 
OTHER INCOME, net
   
(4,745
)
   
(388
)
   
-
     
-
     
-
     
(4,357
)
(Loss) income before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries
   
(15,132
)
   
31,451
     
1,732
     
(4,303
)
   
34,511
     
(78,523
)
(BENEFIT FROM) PROVISION FOR INCOME TAXES
   
(5,967
)
   
12,291
     
651
     
80
     
13,102
     
(32,091
)
CONSOLIDATED NET (LOSS ) INCOME
   
(9,165
)
   
19,160
     
1,081
     
(4,383
)
   
21,409
     
(46,432
)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
   
232
     
-
     
-
     
-
     
-
     
232
 
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
 
$
(9,397
)
 
$
19,160
   
$
1,081
   
$
(4,383
)
 
$
21,409
   
$
(46,664
)
                                                 
Adjusted EBITDA5
 
$
98,353
   
$
50,538
   
$
2,111
   
$
(2,640
)
 
$
60,511
   
$
(12,167
)

 
-MORE-
 


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

 
   
Nine 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
 
$
342,663
   
$
138,971
   
$
41,055
   
$
18,963
   
$
143,837
   
$
(163
)
OPERATING EXPENSES:
                                               
Programming and technical
   
96,789
     
25,172
     
16,237
     
6,758
     
48,622
     
-
 
Selling, general and administrative
   
114,347
     
56,763
     
16,010
     
12,338
     
29,400
     
(164
)
Corporate selling, general and administrative
   
32,425
     
-
     
2,491
     
(25
)
   
7,594
     
22,365
 
Stock-based compensation
   
2,319
     
188
     
31
     
6
     
-
     
2,094
 
Depreciation and amortization
   
25,723
     
3,256
     
148
     
1,299
     
19,664
     
1,356
 
Total operating expenses
   
271,603
     
85,379
     
34,917
     
20,376
     
105,280
     
25,651
 
      Operating income (loss)
   
71,060
     
53,592
     
6,138
     
(1,413
)
   
38,557
     
(25,814
)
INTEREST INCOME
   
174
     
-
     
-
     
-
     
-
     
174
 
INTEREST EXPENSE
   
61,488
     
1,001
     
-
     
-
     
5,756
     
54,731
 
GAIN ON RETIREMENT OF DEBT
   
(2,646
)
   
-
     
-
     
-
     
-
     
(2,646
)
OTHER INCOME, net
   
(76
)
   
(22
)
   
-
     
-
     
-
     
(54
)
Income (loss) before provision for income taxes and noncontrolling interest in income of subsidiaries
   
12,468
     
52,613
     
6,138
     
(1,413
)
   
32,801
     
(77,671
)
PROVISION FOR INCOME TAXES
   
8,265
     
8,056
     
109
     
32
     
68
     
-
 
CONSOLIDATED NET INCOME (LOSS)
   
4,203
     
44,557
     
6,029
     
(1,445
)
   
32,733
     
(77,671
)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
   
1,259
     
-
     
-
     
-
     
-
     
1,259
 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
 
$
2,944
   
$
44,557
   
$
6,029
   
$
(1,445
)
 
$
32,733
   
$
(78,930
)
                                                 
Adjusted EBITDA5
 
$
105,549
   
$
57,576
   
$
6,379
   
$
(99
)
 
$
58,221
   
$
(16,528
)
 

-MORE-
 
 

PAGE 11 -- URBAN ONE, INC. REPORTS THIRD QUARTER RESULTS
 
Urban One, Inc. will hold a conference call to discuss its results for third fiscal quarter of 2017. The conference call is scheduled for Thursday, November 02, 2017 at 10:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free 1-800-230-1059; international callers may dial direct (+1) 612-288-0337.

A replay of the conference call will be available from 12:00 p.m. EDT November 02, 2017 until 11:59 p.m. EST November 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 430557. 

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 56 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:
 
"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.

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."

For the three months ended September 30, 2017 and 2016, Urban One had 46,681,585 and 47,481,004 shares of common stock outstanding on a weighted average basis (basic), respectively.  For the nine months ended September 30, 2017 and 2016, Urban One had 47,487,607 and 48,066,267 shares of common stock outstanding on a weighted average basis (basic), respectively.

For the three months ended September 30, 2017 and 2016, Urban One had 46,681,585 and 47,481,004 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock options), respectively.  For the nine months ended September 30, 2017 and 2016, Urban One had 47,487,607 and 49,240,165 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock options), respectively.

"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, 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 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.

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