Urban One Reports Radio 4Q Revenue Drop

Urban One, Inc. today reported its results for the quarter ended December 31, 2020. 

• Net revenue was approximately $113.5 million, an increase of 7.3% from the same period in 2019. Broadcast and digital operating income1 was approximately $51.9 million, an increase of 51.3% from the same period in 2019. 
• The Company reported operating income of approximately $34.5 million for the three months ended December 31, 2020, compared to operating income of approximately $12.1 million for the same period in 2019. 
• Net income was approximately $26.4 million or $0.58 per share (basic) compared to a net loss of approximately $7.9 million or $0.18 per share (basic) for the same period in 2019. 
• Adjusted EBITDA2 was approximately $41.7 million for the three months ended December 31, 2020, compared to approximately $27.5 million for the same period in 2019.

Alfred C. Liggins, III, Urban One's CEO and President stated, "The Company had an extremely strong fourth quarter, driven by record levels of political advertising and strong demand for our digital and cable TV advertising inventory. In combination with ongoing cost controls, this resulted in a 51% increase in Adjusted EBITDA. 

Alfred Liggins III

"All of our operating divisions were able to grow Q4 Adjusted EBITDA year-over-year, and I was particularly pleased with the performance of our digital business, which delivered approximately $6.4 million of Adjusted EBITDA for the full year, an increase of 587% from prior year. Year-end liquidity remained robust, with a cash balance of $73.9 million, after fully paying down our ABL facility by $27.5 million. In the first quarter of 2021, we successfully refinanced all tranches of our indebtedness, resulting in a simplified capital structure with significantly extended maturities and a lower average cost of capital. Additionally, we put in place a new 5-year $50 million revolving ABL facility with Bank of America (BAC). This puts the Company in a strong position to take advantage of the anticipated economic recovery post COVID-19.

"Net revenue increased to approximately $113.5 million for the quarter ended December 31, 2020, from approximately $105.9 million for the same period in 2019. The increase in net revenue was due primarily to unprecedented political revenue recognized by all of our segments during the fourth quarter. While the COVID-19 pandemic continues to impact our revenues, net revenues from our radio broadcasting segment decreased 3.2% compared to the same period in 2019."

Excluding political, the radio broadcasting segment decreased 27.7% compared to the same period in 2019. 

"We experienced net revenue declines most significantly in our Baltimore, Dallas, Houston, and Washington DC markets, with our Atlanta, Charlotte, Cincinnati, Columbus, Philadelphia and Raleigh markets experiencing growth for the quarter. As part of the previously announced swap with Entercom, the Company exited the St. Louis market, transferred WTEM in Washington DC and WPHI in Philadelphia and began operating four new stations in the Charlotte market. 

"We recognized approximately $45.6 million of revenue from our cable television segment during the three months ended December 31, 2020, compared to approximately $44.8 million for the same period in 2019. Net revenue from our Reach Media segment increased approximately $2.3 million for the quarter ended December 31, 2020, compared to the same period in 2019 due primarily to political revenue. Finally, net revenues for our digital segment increased approximately $6.1 million for the three months ended December 31, 2020, compared to the same period in 2019. 

"There was a strong direct sales rebound after the expected COVID-19 pandemic-induced revenue decline from the first half of the year with direct revenue increasing approximately $4.9 million for the quarter ended December 31, 2020 over the same period in 2019.