NASDAQ$UONE

Urban One Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Revenue and profitability decreased due to the impact of the COVID-19 pandemic on radio advertising and events.

Urban One, Inc. reported a decrease in net revenue by 37.5% compared to the same period in 2019, primarily due to the impact of the COVID-19 pandemic. Net income decreased to $1.4 million, or $0.03 per share. The company's TV and digital businesses performed better than radio and events.

  • Net revenue decreased by 37.5% year-over-year to $76.0 million.
  • Radio advertising revenue declined by 51% year-over-year.
  • Event revenues plummeted by 96% year-over-year.
  • Net income was $1.4 million, or $0.03 per share, compared to $6.6 million, or $0.15 per share, in the same period last year.

Headline financials

Total Revenue

$76M

Previous: $122M-37.5%
EPS (adj)

$0.03

Previous: $0.20-85.0%
Adjusted EBITDA

$24.5M

Previous: $39.6M-38.1%
Capital Expenditures

-$2.65M

Previous: -$2.11M-25.6%
Free Cash Flow

-$1.23M

Previous: $4.48M-127.4%
Net Income

$1.42M

Previous: $6.59M-78.5%
Operating Income

$20.4M

Previous: $30.5M-33.3%
Gross Profit

$52.4M

Previous: $122M-56.9%
Cash & Equivalents

$69.7M

Previous: $14.6M+377.2%
Total Assets

$1.21B

Previous: $1.27B-4.7%
Stock-Based Comp

$268K

No prior period

Revenue & EPS history

Urban One · Revenue · Quarterly

$76M

Q2 2020-37.5%vs Q2 2019

Revenue by segment

Urban One · $111M total across 4 segments · Q1 2023

  • Cable Television
    $49.7M
  • Radio Broadcasting
    $35.2M
  • Digital
    $15.1M
  • Reach Media
    $10.9M

Forward guidance

The outlook for the rest of 2020 remains uncertain, but the company anticipates a similar pattern of strong performance from its TV business offsetting some of the weakness in radio advertising and events. Q3 core radio business is currently pacing -41% and the company continue to see sequential improvement.

Tailwinds

  • Strong performance from TV business.
  • Sequential improvement in Q3 core radio business.
  • Cost saving measures remain in place.
  • Liquidity is strong with $70 million of cash on the balance sheet.
  • Company will continue to successfully navigate through these unprecedented times.

Headwinds

  • Uncertain outlook for the rest of 2020.
  • Weakness in radio advertising.
  • Weakness in events.
  • Economic impact of Covid-19.
  • Radio advertising was down 51%, and event revenues were -96% year over year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.2%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+44.5%

Avg return

30 days after

44%

29 / 66 earnings

Positive

+31.9%

Q4 2014

Best reaction

-23.4%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-11.9%-13.7%
Q4 2025-2.3%-19.4%-11.8%
Q2 2025-3.0%-3.6%-17.3%
Q1 2025-3.0%+2.4%-3.6%
Q4 2024+1.4%-2.1%-3.4%
Q3 2024-15.1%-9.6%+1.2%
Q3 2025+0.8%+14.5%+7.6%
Q2 2024+7.1%+7.1%+4.1%
Q4 2023+20.3%+2.4%-17.5%
Q1 2024+20.3%+2.4%-17.5%
Q3 2023+2.3%+4.8%-9.8%
Q2 2023-0.5%+2.0%+1.2%
Q1 2023+1.4%+1.8%-5.8%
Q4 2022-0.5%-3.6%-5.3%
Q3 2022+2.8%+2.8%-10.1%
Q2 2022+12.7%+21.3%+4.8%
Q1 2022+15.2%+13.4%+47.9%
Q4 2021+5.8%-2.4%+19.6%
Q3 2021-14.3%-14.2%-40.8%
Q2 2021+6.0%+17.0%+16.7%
Q1 2021+11.5%+18.0%+347.4%
Q4 2020-1.5%-8.4%-16.8%
Q3 2020-4.7%+4.2%+0.0%
Q2 2020-9.2%-8.5%-71.1%
Q1 2020+4.8%+4.8%+1560.0%
Q4 2019-23.4%-18.8%-20.1%
Q3 2019+1.8%-0.9%-4.6%
Q2 2019-9.1%-10.4%-19.5%
Q1 2019-16.5%-12.1%-12.9%
Q4 2018-0.4%-3.6%-5.8%
Q3 2018-11.6%-8.9%-25.2%
Q2 2018+0.0%-5.7%-13.2%
Q1 2018-6.7%-6.7%+50.3%
Q4 2017+5.4%+6.5%+5.4%
Q3 2017-3.2%-6.5%-5.8%
Q2 2017+0.0%-2.7%-8.1%
Q1 2017-15.4%-15.4%-40.0%
Q4 2016-3.8%+5.8%+17.3%
Q3 2016-1.7%+17.5%+23.9%
Q2 2016+11.9%+6.4%+15.6%
Q1 2016+12.5%
Q4 2015-10.9%
Q3 2015-1.9%
Q2 2015+16.7%
Q1 2015-6.9%
Q4 2014+31.9%
Q3 2014-10.0%
Q2 2014-20.6%
Q1 2014-10.8%
Q4 2013-1.9%
Q3 2013+4.1%
Q2 2013+2.0%
Q1 2013+26.5%
Q2 2012-0.6%
Q4 2012-8.2%
Q3 2012+1.1%
Q1 2011-0.9%
Q1 2012-0.9%
Q2 2011+5.8%
Q4 2009+5.8%
Q4 2011+5.8%
Q3 2010-2.3%
Q3 2011-2.3%
Q2 2010+4.5%
Q4 2010+4.5%
Q1 2010-5.4%

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