NASDAQ$UONE

Urban One Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Net revenue decreased, but adjusted EBITDA increased year-over-year.

Urban One reported a decrease in net revenue for Q3 2020, primarily due to the COVID-19 pandemic's impact on advertising and event revenues. However, the company's adjusted EBITDA increased due to strong performances in the TV, Digital, and Reach Media divisions.

  • Net revenue decreased by 17.2% compared to the same period in 2019.
  • Broadcast and digital operating income increased by 1.3% year-over-year.
  • Net loss was $12.8 million, compared to net income of $5.4 million in Q3 2019.
  • Adjusted EBITDA increased by 2.3% compared to Q3 2019.

Headline financials

Total Revenue

$91.9M

Previous: $111M-17.2%
EPS (adj)

$0.37

Previous: $0.12+208.3%
Capital Expenditures

-$3.18M

Previous: -$3.95M+19.5%
Free Cash Flow

-$15.9M

Previous: $1.41M-1229.5%
Net Income

-$12.8M

Previous: $5.36M-338.3%
Operating Income

$3.97M

Previous: $32.5M-87.8%
Gross Profit

$67.7M

No prior period
Cash & Equivalents

$102M

Previous: $31.4M+226.0%
Total Assets

$1.21B

Previous: $1.26B-4.0%
Stock-Based Comp

$794K

No prior period

Revenue & EPS history

Urban One · Revenue · Quarterly

$91.9M

Q3 2020-17.2%vs Q3 2019

Revenue by segment

Urban One · $92.6M total across 4 segments · Q3 2020

  • Cable Television
    $44.7M
  • Radio Broadcasting
    $31.6M
  • Digital
    $8.45M
  • Reach Media
    $7.75M

Forward guidance

Urban One expects full year 2020 Adjusted EBITDA to be in the $125-$130 million range.

Tailwinds

  • Radio segment revenues showed continued sequential improvements compared to Q2 2020.
  • Same station radio division revenues are currently pacing down only mid-single digits compared to Q4 2019 including political advertising.
  • Impressive performance in TV, Digital and Reach Media divisions.
  • Record-breaking political advertising revenues in excess of $20 million across the entire platform.
  • Strong support from lenders for bond exchange offer, extending maturity of secured notes and unsecured term loan.

Headwinds

  • COVID-19 pandemic continues to impact the Company's revenues.
  • Radio segment derives substantial revenue from local advertisers who have been particularly hard hit due to social distancing and government interventions.
  • Postponement of the 2020 Tom Joyner Foundation Fantastic Voyage cruise and impaired ticket sales of other tent pole special events.
  • Company does not carry business interruption insurance to compensate for losses from COVID-19.
  • Continued or future outbreaks and/or the speed at which businesses reopen (or reclose) in the markets could have material impacts on liquidity and/or operations.

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 Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+43.1%

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%-11.9%
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 2012-0.9%
Q1 2011-0.9%
Q2 2011+5.8%
Q4 2009+5.8%
Q4 2011+5.8%
Q3 2011-2.3%
Q3 2010-2.3%
Q2 2010+4.5%
Q4 2010+4.5%
Q1 2010-5.4%

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