PR Newswire | Jul 30, 2020 06:46AM EDT

07/30 05:45 CDT

Urban One, Inc. Reports Second Quarter Results WASHINGTON, July 30, 2020

WASHINGTON, July 30, 2020 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended June 30, 2020. Net revenue was approximately $76.0 million, a decrease of 37.5% from the same period in 2019. Broadcast and digital operating income1 was approximately $30.2 million, a decrease of 33.1% from the same period in 2019. The Company reported operating income of approximately $20.4 million for the three months ended June 30, 2020, compared to approximately $29.1 million for the same period in 2019. Net income was approximately $1.4 million or $0.03 per share (basic) compared to net income of approximately $6.6 million or $0.15 per share (basic) for the same period in 2019. Adjusted EBITDA2 was approximately $24.5 million for the three months ended June 30, 2020, compared to approximately $39.6 million for the same period in 2019.

Alfred C. Liggins, III, Urban One's CEO and President stated, "The economic impact of Covid-19 is fully evident in our second quarter numbers: radio advertising was down 51%, and event revenues were -96% year over year. Our TV and digital businesses fared better, with TV advertising revenue down 4.4% and digital -20%, highlighting the benefits of our diversified media asset base. We had to make tough decisions to reduce costs, and I am proud of how our team, including on-air talent, made sacrifices and worked diligently to keep us operating smoothly through the pandemic. With the issue of racial equality featuring so prominently around the world, it is critical that diverse voices continue to be heard and I thank all our staff and talent for their exceptional work engaging with our audience and clients. The outlook for the rest of 2020 remains uncertain, but I anticipate a similar pattern of strong performance from our TV business offsetting some of the weakness in radio advertising and events. On a same station basis, our Q3 core radio business is currently pacing -41% and we continue to see sequential improvement. Our cost saving measures remain in place, liquidity is strong with $70 million of cash on the balance sheet, and I firmly believe that Urban One will continue to successfully navigate our way through these unprecedented times."

RESULTS OF OPERATIONS

Three Months Ended June 30, Six Months Ended June 30,

2020 2019 2020 2019

STATEMENT OF (unaudited) (unaudited)OPERATIONS

(in thousands, except share data) (in thousands, except share data)

NET REVENUE $ 76,008 $ 121,571 $ 170,883 $ 220,020

OPERATING EXPENSES

Programming and technical, excluding 23,620 31,225 51,482 62,742 stock-based compensation

Selling, general and administrative, excluding 22,216 45,233 51,593 78,800 stock-based compensation

Corporate selling, general and administrative, 7,140 8,408 15,472 18,192 excluding stock-based compensation

Stock-based 268 200 661 711 compensation

Depreciation and 2,382 3,584 4,930 11,858 amortization

Impairment of - 3,800 53,650 3,800 long-lived assets

Total operating 55,626 92,450 177,788 176,103 expenses

Operating income 20,382 29,121 (6,905) 43,917 (loss)

INTEREST INCOME 26 63 34 86

INTEREST EXPENSE 18,395 20,578 37,533 41,408

OTHER INCOME, net (94) (1,649) (1,598) (3,370)

Income (loss) before provision for (benefit from) income taxes and 2,107 10,255 (42,806) 5,965 noncontrolling interest in income of subsidiaries

PROVISION FOR (BENEFIT FROM) 465 3,118 (21,390) 1,807 INCOME TAXES

CONSOLIDATED NET 1,642 7,137 (21,416) 4,158 INCOME (LOSS)

NET INCOME ATTRIBUTABLE TO 222 546 351 671 NONCONTROLLING INTERESTS

CONSOLIDATED NET INCOME (LOSS) $ $ $ $ ATTRIBUTABLE TO 1,420 6,591 (21,767) 3,487 COMMON STOCKHOLDERS

AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS

CONSOLIDATED NET INCOME (LOSS) $ $ $ $ ATTRIBUTABLE TO 1,420 6,591 (21,767) 3,487 COMMON STOCKHOLDERS

Weighted average shares outstanding - 44,806,219 45,061,821 45,025,471 45,175,521 basic^3

Weighted average shares outstanding - 48,154,262 45,701,655 45,025,471 45,984,939 diluted^4

Three Months Ended June 30, Six Months Ended June 30,

2020 2019 2020 2019

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 (loss)attributable to common stockholders $ 0.03 $ 0.15 $ (0.48) $ 0.08(basic)

Consolidated net income (loss)attributable to common stockholders $ 0.03 $ 0.14 $ (0.48) $ 0.08(diluted)

SELECTED OTHER DATA

Broadcast and digital operating $ 30,172 $ 45,113 $ 67,808 $ 78,478income ^1

Broadcast and digital operating 39.7% 37.1% 39.7% 35.7%income margin (% of net revenue)

Broadcast and digital operatingincome reconciliation:

Consolidated net income (loss) $ 1,420 $ 6,591 $ (21,767) $ 3,487attributable to common stockholders

Add back non-broadcast anddigital operating income itemsincluded in consolidated net income(loss):

Interest income (26) (63) (34) (86)

Interest expense 18,395 20,578 37,533 41,408

Provision for (benefit from) income 465 3,118 (21,390) 1,807taxes

Corporate selling, general and 7,140 8,408 15,472 18,192administrative expenses

Stock-based compensation 268 200 661 711

Other income, net (94) (1,649) (1,598) (3,370)

Depreciation and amortization 2,382 3,584 4,930 11,858

Noncontrolling interest in income 222 546 351 671of subsidiaries

Impairment of long-lived assets - 3,800 53,650 3,800

Broadcast and digital operating $ 30,172 $ 45,113 $ 67,808 $ 78,478income

Adjusted EBITDA^2 $ 24,537 $ 39,630 $ 56,797 $ 67,346

Adjusted EBITDA reconciliation:

Consolidated net income (loss) $ 1,420 $ 6,591 $ (21,767) $ 3,487attributable to common stockholders

Interest income (26) (63) (34) (86)

Interest expense 18,395 20,578 37,533 41,408

Provision for (benefit from) income 465 3,118 (21,390) 1,807taxes

Depreciation and amortization 2,382 3,584 4,930 11,858

EBITDA $ 22,636 $ 33,808 $ (728) $ 58,474

Stock-based compensation 268 200 661 711

Other income, net (94) (1,649) (1,598) (3,370)

Noncontrolling interest in income 222 546 351 671of subsidiaries

Employment Agreement Award,incentive plan award expenses and 98 806 1,311 2,713other compensation

Contingent consideration from 66 90 (7) 167acquisition

Severance-related costs 1,261 401 1,587 822

Cost method investment income from 80 1,628 1,570 3,358MGM National Harbor

Impairment of long-lived assets - 3,800 53,650 3,800

Adjusted EBITDA $ 24,537 $ 39,630 $ 56,797 $ 67,346

June 30, 2020 December 31, 2019

(unaudited)

(in thousands)

SELECTED BALANCE SHEET DATA:

Cash and cash equivalents and restricted cash $ 70,171 $ 33,546

Intangible assets, net 825,951 881,708

Total assets 1,209,045 1,249,919

Total debt (including current portion, net of original issue discount 888,381 876,253 and issuance costs)

Total liabilities 1,038,786 1,056,280

Total stockholders' equity 159,460 183,075

Redeemable noncontrolling interest 10,799 10,564

Applicable Interest June 30, 2020 Rate

(in thousands)

SELECTED LEVERAGE DATA:

2017 Credit Facility, net of original issue discount and issuance $ 314,369 5.00% costs of approximately $4.6 million (subject to variable rates) (a)

7.375% senior secured notes due April 2022, net of original issue discount and issuance costs of approximately $1.9 million (fixed 348,067 7.375% rate)

2018 Credit Facility, net of original issue discount and issuance 143,563 12.875% costs of approximately $3.2 million (fixed rate)

MGM National Harbor Loan, net of original issue discount and issuance 54,882 11.00% costs of approximately $1.9 million (fixed rate)

Asset-backed credit facility (subject to variable rates) (a) 27,500 1.94%

(a) Subject to variable Libor or Prime 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, 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.

Beginning in March 2020, the Company noted that the COVID-19 pandemic and the resulting government stay at home orders across the markets in which we operate were dramatically impacting certain of the Company's revenues. Most notably, a number of advertisers across significant advertising categories have reduced or ceased advertising spend due to the outbreak and stay at home orders which effectively shut many businesses down. This has been particularly true within our radio segment which derives substantial revenue from local advertisers who have been particularly hard hit due to social distancing and government interventions. Further, the COVID-19 outbreak has caused the postponement of our 2020 Tom Joyner Foundation Fantastic Voyage cruise and impaired ticket sales and/or caused the postponement of other tent pole special events. We do not carry business interruption insurance to compensate us for losses that may occur as a result of any of these interruptions and continued impacts from the COVID-19 outbreak. Continued or future outbreaks and/or the speed at which businesses reopen (or reclose) in the markets in which we operate could have material impacts on our liquidity and/or operations including causing potential impairment of assets and of our financial 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 June 30,

2020 2019 $ Change % Change

(Unaudited)

(in thousands)

Net Revenue:

Radio Advertising $ 25,358 $ 51,771 $ (26,413) -51.0%

Political Advertising 361 317 44 13.9%

Digital Advertising 6,104 7,663 (1,559) -20.3%

Cable Television Advertising 18,941 19,816 (875) -4.4%

Cable Television Affiliate 24,619 26,599 (1,980) -7.4%Fees

Event Revenues & Other 625 15,405 (14,780) -95.9%

Net Revenue (as reported) $ 76,008 $ 121,571 $ (45,563) -37.5%

Net revenue decreased to approximately $76.0 million for the quarter ended June 30, 2020, from approximately $121.6 million for the same period in 2019. The decrease in net revenue was due primarily to the COVID-19 pandemic which continued to weaken demand for advertising in general and impaired ticket sales and/or caused the postponement of major tent pole special events. Net revenues from our radio broadcasting segment decreased 58.4% compared to the same period in 2019. Based on reports prepared by the independent accounting firm Miller, Kaplan, Arase & Co., LLP ("Miller Kaplan"), the markets we operate in (excluding Richmond and Raleigh, both of which no longer participate in Miller Kaplan) decreased 54.4% in total revenues. We experienced net revenue declines in all of our radio markets for the quarter, primarily due to lower advertising sales. We recognized approximately $43.8 million of revenue from our cable television segment during the three months ended June 30, 2020, compared to approximately $46.4 million for the same period in 2019 due to decreases in both advertising and affiliate sales. Net revenue from our Reach Media segment decreased approximately $12.5 million for the quarter ended June 30, 2020, compared to the same period in 2019. The "Tom Joyner Fantastic Voyage" took place during the second quarter of 2019 and generated revenue of approximately $10.2 million. The 2020 cruise has been postponed at this time. Finally, net revenues for our digital segment decreased approximately $1.6 million for the three months ended June 30, 2020, compared to the same period in 2019, primarily due to a decrease in direct and indirect revenues.

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, decreased to approximately $53.0 million for the quarter ended June 30, 2020, down 37.6% from the approximately $84.9 million incurred for the comparable quarter in 2019. The overall operating expense decrease was driven by lower programming and technical expenses, lower selling, general and administrative expenses and lower corporate selling, general and administrative expenses across all of our divisions. Due to COVID-19, all special events scheduled to take place during the second quarter were either cancelled or postponed to a later date. The 2019 "Tom Joyner Fantastic Voyage" generated expense of approximately $8.7 million, other Reach Media events generated expense of $600,000 and radio station events generated expense of approximately $2.9 million during the second quarter of 2019.

During the quarter ended June 30, 2020, we saved approximately $7.1 million in employee compensation expense reductions through a combination of layoffs, furloughs and pay cuts. We have also incurred savings of approximately $4.1 million in reduced or delayed marketing spend, $2.3 million in lower programming content amortization, $1.8 million in contract labor and talent cost savings and $1.4 million in reduced travel and office expenses. In addition, there were lower variable expenses such as commissions and rep fees, traffic acquisition costs and music license fees of approximately $3.2 million.

Depreciation and amortization expense decreased to approximately $2.4 million for the quarter ended June 30, 2020, compared to approximately $3.6 million for the same quarter in 2019. The decrease in expense is due to the mix of assets approaching or near the end of their useful lives, most notably certain of the Company's cable television affiliate agreements.

Interest expense decreased to approximately $18.4 million for the quarter ended June 30, 2020, compared to approximately $20.6 million for the same period in 2019. The Company made cash interest payments of approximately $22.4 million on its outstanding debt for the quarter June 30, 2020, compared to cash interest payments of approximately $24.6 million on its outstanding debt for the quarter ended June 30, 2019. During the quarter ended June 30, 2020, the Company borrowed an incremental $3.6 million on the MGM National Harbor Loan and used the proceeds to pay down the higher coupon 2018 Credit Facility by the same amount. As of June 30, 2020, the Company had approximately $27.5 million in borrowings outstanding on its ABL Facility.

The impairment of long-lived assets for the three months ended June 30, 2019, was related to a non-cash impairment charge of approximately $3.8 million associated with our Detroit market radio broadcasting license.

During the three months ended June 30, 2020, the provision for income taxes was $465,000 compared to approximately $3.1 million for the three months ended June 30, 2019. The decrease in the provision for income taxes was primarily due to the application of the actual effective tax rate for the year to date and pre-tax income of approximately $2.1 million during the quarter. For the three months ended June 30, 2019, we recorded a provision for income taxes of approximately $3.1 million on pre-tax income from continuing operations of approximately $10.3 million, which results in a tax rate of 30.3%. This tax rate is based on an estimated annual effective tax rate of 30.9%. This rate includes approximately 2.7% of non-tax deductible officer's compensation, and 1.1% of non-tax deductible meals and entertainment expenses. The tax provision resulted in an effective tax rate of 22.1% and 30.4% for the three months ended June 30, 2020 and 2019, respectively. The Company paid no taxes for the quarter ended June 30, 2020 and paid $383,000 in taxes for the quarter ended June 30, 2019.

Other income, net, was $94,000 and approximately $1.6 million for the three months ended June 30, 2020 and 2019, respectively. We recognized other income in the amount of $80,000 and approximately $1.6 million for the three months ended June 30, 2020 and 2019, respectively, related to our MGM investment. The decrease is due to the closure of the MGM casino as a result of the COVID-19 pandemic.

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 June 30, 2020 compared to the three months ended June 30, 2019.

Other pertinent financial information includes capital expenditures of approximately $1.2 million and $1.4 million for the quarters ended June 30, 2020 and 2019, respectively.

During the three months ended June 30, 2020, the Company did not repurchase any shares of Class A common stock and repurchased 3,208,288 shares of Class D common stock in the amount of approximately $2.4 million. During the three months ended June 30, 2019, the Company repurchased 26,171 shares of Class A common stock in the amount of $56,000 and repurchased 899,765 shares of Class D common stock in the amount of approximately $1.8 million.

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 June 30, 2020, the Company executed a Stock Vest Tax Repurchase of 155,771 shares of Class D Common Stock in the amount of $140,000. During the three months ended June 30, 2019, the Company executed a Stock Vest Tax Repurchase of 6,368 shares of Class D Common Stock in the amount of $13,000.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three and six months ended June 30, 2020 and 2019 are included.

Three Months Ended June 30, 2020

(in thousands, unaudited)

Radio Reach Cable Corporate/

Consolidated Broadcasting Media Digital Television Eliminations

STATEMENT OF OPERATIONS:

NET REVENUE $ 76,008 $ 20,505 $ 6,268 $ 6,104 $ 43,761 $ (630)

OPERATING EXPENSES:

Programming and 23,620 7,597 2,968 2,442 10,994 (381) technical

Selling, general and 22,216 12,985 1,303 3,262 4,900 (234) administrative

Corporate selling, general and 7,140 - 620 19 1,059 5,442 administrative

Stock-based 268 32 50 - - 186 compensation

Depreciation and 2,382 766 60 277 940 339 amortization

Total operating 55,626 21,380 5,001 6,000 17,893 5,352 expenses

Operating 20,382 (875) 1,267 104 25,868 (5,982) income (loss)

INTEREST INCOME 26 - - - - 26

INTEREST EXPENSE 18,395 - - 79 1,919 16,397

OTHER INCOME, net (94) - - - - (94)

Income (loss) before provision for (benefit from) income taxes and 2,107 (875) 1,267 25 23,949 (22,259) noncontrolling interest in income of subsidiaries

PROVISION FOR (BENEFIT 465 (23) 391 - 5,985 (5,888) FROM) INCOME TAXES

CONSOLIDATED NET INCOME 1,642 (852) 876 25 17,964 (16,371) (LOSS)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING 222 - - - - 222 INTERESTS

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON $ 1,420 $ (852) $ 876 $ 25 $ 17,964 $ (16,593) STOCKHOLDERS

Adjusted EBITDA^2 $ 24,537 $ 813 $ 1,577 $ 519 $ 26,871 $ (5,243)

Three Months Ended June 30, 2019

(in thousands, unaudited)

Radio Reach Cable Corporate/

Consolidated Broadcasting Media Digital Television Eliminations

STATEMENT OF OPERATIONS:

NET REVENUE $ 121,571 $ 49,312 $ 18,770 $ 7,673 $ 46,430 $ (614)

OPERATING EXPENSES:

Programming and 31,225 10,680 4,015 2,643 14,327 (440) technical

Selling, general and 45,233 20,850 10,762 4,510 9,125 (14) administrative

Corporate selling, general and 8,408 - 732 1 1,733 5,942 administrative

Stock-based 200 93 6 11 3 87 compensation

Depreciation and 3,584 851 59 460 1,901 313 amortization

Impairment of 3,800 3,800 - - - - long-lived assets

Total operating 92,450 36,274 15,574 7,625 27,089 5,888 expenses

Operating 29,121 13,038 3,196 48 19,341 (6,502) income (loss)

INTEREST INCOME 63 - - - - 63

INTEREST EXPENSE 20,578 338 - - 1,919 18,321

OTHER INCOME, net (1,649) (1) - - - (1,648)

Income (loss) before provision for (benefit from) income taxes and 10,255 12,701 3,196 48 17,422 (23,112) noncontrolling interest in income of subsidiaries

PROVISION FOR (BENEFIT 3,118 3,260 745 - 4,369 (5,256) FROM) INCOME TAXES

CONSOLIDATED NET INCOME 7,137 9,441 2,451 48 13,053 (17,856) (LOSS)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING 546 - - - - 546 INTERESTS

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON $ 6,591 $ 9,441 $ 2,451 $ 48 $ 13,053 $ (18,402) STOCKHOLDERS

Adjusted EBITDA^2 $ 39,630 $ 17,917 $ 3,261 $ 648 $ 21,356 $ (3,552)

Six Months Ended June 30, 2020

(in thousands, unaudited)

Radio Reach Cable Corporate/

Consolidated Broadcasting Media Digital Television Eliminations

STATEMENT OF OPERATIONS:

NET REVENUE $ 170,883 $ 55,421 $ 12,958 $ 12,393 $ 91,257 $ (1,146)

OPERATING EXPENSES:

Programming and 51,482 17,478 6,385 5,562 22,820 (763) technical

Selling, general and 51,593 29,418 3,054 7,331 12,151 (361) administrative

Corporate selling, general and 15,472 - 1,338 19 2,381 11,734 administrative

Stock-based 661 110 59 6 - 486 compensation

Depreciation and 4,930 1,506 119 765 1,883 657 amortization

Impairment of 53,650 53,650 - - - - long-lived assets

Total operating 177,788 102,162 10,955 13,683 39,235 11,753 expenses

Operating (6,905) (46,741) 2,003 (1,290) 52,022 (12,899) (loss) income

INTEREST INCOME 34 - - - - 34

INTEREST EXPENSE 37,533 3 - 158 3,838 33,534

OTHER INCOME, net (1,598) (1) - - - (1,597)

(Loss) income before (benefit from) provision for income taxes and (42,806) (46,743) 2,003 (1,448) 48,184 (44,802) noncontrolling interest in income of subsidiaries

(BENEFIT FROM) PROVISION FOR INCOME (21,390) (9,872) 574 - 12,040 (24,132) TAXES

CONSOLIDATED NET (LOSS) (21,416) (36,871) 1,429 (1,448) 36,144 (20,670) INCOME

NET INCOME ATTRIBUTABLE TO NONCONTROLLING 351 - - - - 351 INTERESTS

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON $ (21,767) $ (36,871) $ 1,429 $ (1,448) $ 36,144 $ (21,021) STOCKHOLDERS

Adjusted EBITDA^2 $ 56,797 $ 9,564 $ 2,380 $ (291) $ 53,974 $ (8,830)

Six Months Ended June 30, 2019

(in thousands, unaudited)

Radio Reach Cable Corporate/

Consolidated Broadcasting Media Digital Television Eliminations

STATEMENT OF OPERATIONS:

NET REVENUE $ 220,020 $ 86,061 $ 25,743 $ 15,110 $ 94,253 $ (1,147)

OPERATING EXPENSES:

Programming and 62,742 20,892 8,081 5,538 29,148 (917) technical

Selling, general and 78,800 38,287 12,300 9,213 19,065 (65) administrative

Corporate selling, general and 18,192 - 1,543 1 3,142 13,506 administrative

Stock-based 711 188 20 28 8 467 compensation

Depreciation and 11,858 1,719 118 921 8,477 623 amortization

Impairment of 3,800 3,800 - - - - long-lived assets

Total operating 176,103 64,886 22,062 15,701 59,840 13,614 expenses

Operating 43,917 21,175 3,681 (591) 34,413 (14,761) income (loss)

INTEREST INCOME 86 - - - - 86

INTEREST EXPENSE 41,408 675 - - 3,838 36,895

OTHER (INCOME) EXPENSE, (3,370) 2 - - - (3,372) net

Income (loss) before provision for (benefit from) income taxes and 5,965 20,498 3,681 (591) 30,575 (48,198) noncontrolling interest in income of subsidiaries

PROVISION FOR (BENEFIT 1,807 5,253 858 2 7,667 (11,973) FROM) INCOME TAXES

CONSOLIDATED NET INCOME 4,158 15,245 2,823 (593) 22,908 (36,225) (LOSS)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING 671 - - - - 671 INTERESTS

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON $ 3,487 $ 15,245 $ 2,823 $ (593) $ 22,908 $ (36,896) STOCKHOLDERS

Adjusted EBITDA^2 $ 67,346 $ 27,184 $ 3,837 $ 750 $ 43,024 $ (7,449)

Urban One, Inc. will hold a conference call to discuss its results for the second fiscal quarter of 2020. The conference call is scheduled for Thursday, July 30, 2020 at 10:00 a.m. EDT. To participate on this call, U.S. callers may dial toll-free 1-877-692-8957; international callers may dial direct (+1) 234-720-6980. The Access Code is 7060146.

A replay of the conference call will be available from 1:00 p.m. EDTJuly 30, 2020 until 12:00 a.m. EDTAugust 01, 2020. 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 2877475.

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 June 2020, Urban One currently owns and/or operates 61 broadcast stations (including all HD stations, translator stations and the low power television stations we operate) branded under the tradename "Radio One" in 14 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 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 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, 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 June 30, 2020 and 2019, Urban One had 44,806,219 and 45,061,821 shares of common stock outstanding on a weighted average basis (basic), respectively. For the six months ended June 30, 2020 and 2019, Urban One had 45,025,471 and 45,175,521 shares of common stock outstanding on a weighted average basis (basic), respectively.

4 For the three months ended June 30, 2020 and 2019, Urban One had 48,154,262 and 45,701,655 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the six months ended June 30, 2020 and 2019, Urban One had 45,025,471 and 45,984,939 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively.

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SOURCE Urban One, Inc.