UONE - Earnings call transcript Q3 2017

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to Urban One's Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

During this call, Urban One will be sharing with you certain projections or other forward-looking statements regarding future events or its future performance. Securities that the including other results XX-Ks periodically with you referred and reports to cautions could or files in Commission forward-looking those to and the its differ One materially certain Company's indicated risks factors, uncertainties it cause from Urban the Exchange by actual projections and XX-Qs and statements. as This XXXX. call X, will of November present information any Urban One disclaims forward-looking update statements that to presentation. made note Please duty the in any some call, non-GAAP measures Urban about One performance. this discuss its also In talking financial may in These of measures be www.urbanX.com. will release, the the be at reconciled to can GAAP, this Company's either during found which in website course on its call or press A Time XXXX. replay from will X, available November be noon today, X, of Eastern the XXXX, conference also November until midnight calling access using replay and XXXXXX. may the code the by X-XXX-XXX-XXXX access Callers

I will Again, a the on international and live with The an participants the For Access website, made at of code is replay website replay audio Urban the be XXX-XXX-XXXX, www.urbanX.com. Liggins, for will available number to numbers Officer. X-XXX-XXX-XXXX be XXXXXX. call now over available of on also access One's and Urban corporate are seven Liggins? those call. XXX-XXX-XXXX. No upon. this call conference Financial Mr. joined D. the other turn the One, Chief C. today are Executive authorized is days Officer to Chief maybe who relied or Alfred copies call or Peter Thompson, recordings after of will of by

Alfred Liggins

by year, also, Administrative the numbers. this And call. our Linda the we Jody Thank is who who Not our I'm Thompson, of last at One only the thank any TV One the Peter you third TV into quarter we also all Vilardo, as public Drewer, so much, of very joined One operator, conference conference have call. we're the and CFO; dig retiring to is Chief her results Urban you is need CFO, end Officer, One joining joined by for Urban

out grow outside top appreciate your almost judgment of spanning thank us a the listen you to different and it And and service. our as I distribution helping what the to you you call XX so you I is ago. on at appreciate retirement to wanted having started day I the on, became for you Counsel it. the today, company say, chance including odd years taking your multimedia the it's of counsel and years you and XX into at I and So any given many almost appreciate hope hours enjoy your company, General call our not me weekend better And systems

Linda Vilardo

very much, you Alfred. Thank that. appreciate I really

Alfred Liggins

Linda, our And Chief Wishart, Karen by joined as Linda is who replacing Officer. Administrative we're also

One, And welcome, time, officer to call. of and a left TV Karen, broader bigger role. your to now and Chief used first and conference Karen Urban at period Counsel, Legal General the So come a for he's be One in back

So contribution the rejoining we for enterprise you look larger forward your and thank to overall us. to

Karen Wishart

And back. thank having for you me

Alfred Liggins

we're stabilized that to our outperform You again. the radio we from results markets and has saw feel starting

looking at quarter, which unsecured a We deleveraging. focus on off while in some time costs, aware XXXX. the digital, to re-fi growth in repurchased legacy continue in We same X.XX% the bonds areas continuing focused we're on of to We're our XXXX. like we're and focusing manage last notes and highly investing also in pay and those

of the putting I'm where in turn company operating, is him get delevering, the Peter going is into over energy detail to the its numbers. and let to So it that and

Peter Thompson

Thank you, Alfred.

on third Richmond Page usual, was outperformed Page source breakout Miller the posted The And So Indianapolis Radio according and their million, quarter radio Detroit, press Atlanta, X.X% XXX on for the a Kaplan. be segment by the the markets can ended to Cleveland, the stations quarter. net $XXX.X clusters quarter by points for and Baltimore, down of revenue in as net can by segment breakout revenue X.X% basis found quarter. for was found growth net September X revenue release. up XXXX approximately XX, revenue X. and

Charlotte, Columbus, outperformed and markets. Additionally, clusters Houston, their St. respective Louis

Our of Houston the revenue approximately cluster ads, was some about by Harvey was which impacted $XXX,XXX. in sector the with partially additional quarter unfavorably of ad $XXX,XXX by Hurricane worth from cancelled offset insurance

transportation travel is clusters, wasn't just were the us down. in to it the is outperformance. So big the point retail revenue so According clusters the for markets markets minus and our sectors, And down telecom, X.X% lot. we financial food Houston. including for of of about our basis services news good down a X.X%, hit the a much net healthcare Houston. think financial, four and It's outperformed so down that up sales compared $XXX,XXX and had their revenue I government/public whilst Kaplan, in all was three pretty hence Auto Advertising entertainment, automotive, were for beverage, to Miller sectors flat. X.X% XXX total

For Wired network Bossip, XX.X% in radio. budgets demand key unit rates. weak in lower exit MadameNoire advertising contributed network from These fourth some digital multi-cultural dollar's mainly Several by Media brands. revenue approximately and quarter for the Reach political. the was third of to third to Net the accounts have factors quarter, third third key revenues our elimination stations reached some pressure the or up quarter currently not downward return in quarter, the pacing further for by excluding increased mid-single-digits by already segment and did in down newly of political radio revenue including Net on of market XXXX, advertisers quarter. XXXX down from driven due our for a Hip-Hop the X%, XX.X% acquired and the

were revenue approximately during million the same approximately was in from down period year-over-year. XXXX, We this pricing. by contractual rate versus segment acquisition, offset estimates up digital the shortfall our $XX.X higher delivery Cable compared of TV in was approximately sales million Excluding down revenue driven recognized cable was increases. where for to card X.X%. by $XX.X X.X%, increase quarter, X.X%, an affiliate rate television TV advertising revenue X% of a Cable

depreciation, SG&A the $X.X in Reach were in XX%, about million cost the Bossip, were Operating due higher due prior $X.X expenses to acquired of to of also programming stock-based newly the HipHopWired million the million state true-up National equal revenue expenses investment QX. place impairments licensing year. by event to second in of reported digital at international compensation, increase Cable million, and were expenses at Radio Operating and finished X% $X expenses the X.X%. end MGM that expenses XXXX in $XX.X million cost approximately fee We operating net income to increased leaseback segment and overall. up The flat of licensing favorable respectively. recorded recognized tower up million Nielsen third in mentioned quarter. $X.X Radio expenses for in by mainly MadameNoire in the our totaled to gaming technical up and million approximately last of expenses. BHM, not the method contracts from and were was from Harbor $XX.X from third the that casino, as net $XX.X quarter. in subscribers quarter. haven't expenses a in quarter brands excluding radio music period, of $X.X impact The these also is the million of QX X% approximately We amortization, Maryland. the of mainly

due Award, flat were SG&A TV and segment year. bonus the expenses digital expenses offset X.X% were the Corporate expenses this fees non-cash absence to outside increasing by accrual of expenses and Excluding within year-over-year, litigation. the Cable One of approximately marketing the increasing up TV legal partially some connected an up adjustment value with overall. were CEO's the also this sales

$XX operating $XX.X approximately was quarter million, $XX.X For in $XX.X the of of million loss million for the on loss the the Company resulting in from of $XXX,XXX approximately compared Consolidated for third $X.X approximately made adjusted $XX.X Notes, year-to-year. expense period down our the third million, approximately was income to or consolidated share share Net XXXX. of in and per amount gain retirement $X.XX of a approximately quarter interest the $XXX,XXX. million or for repurchased quarter broadcast the in quarter. cash million payments $XX.X XXXX. $X.XX the third EBITDA X.X% the compared debt same in million million per decreased discount XXXX. a Company to of was approximately $XX.X XXXX Interest was net Internet

capital million. in quarter. shares satisfy Company were XXXX repurchased company stock the common of employee the with amount the shares And of obligations $XX,XXX in in amount Class The of approximately third $XX,XXX million to stockpile. third employee in D quarter common of connection Company D of $XX,XXX expenditures to approximately $X.X the stock tax taxes paid approximately also million XXX,XXX XXXX. $X.X $X compared in repurchased of quarter Class cash the

$XXX.X X.X - X.XX a balances Alfred. hand and LTM of Bank I'll of times net leverage XXXX, to net times. average approximately senior And and Urban net cash had had pro One OID debt and approximately purposes that, $XXX.X covenant with of XX, EBITDA September million. approximately total the ratio of bank of forma As Radio totaled was was million restricted cash $XXX.X from One and it debt, ratio million, net With back

Alfred Liggins

let's sir. to Q&A. Operator, Thank go you,

Operator

to Thank with you. ahead. David go line go [Operator Please We'll Suisse. Credit of Farber Instructions]

David Farber

How guys. you? morning, Good are

Alfred Liggins

How Good. morning. Good are you?

David Farber

the still in One potential follow-up on it's on from that given of how then the I news a the get the performed. wanted curious low question given had And just the company, next. the news asset lot guess, that hear or context you Good. to of the about valuation. monetization if first you have think think side I the any ask how I do Urban MGM about be you portfolio? I'd the side, to a We MGM how from

Alfred Liggins

Well, we're growing, balance that where we can we leverage particular to current not that think and growing, - emotional try EBITDA, And the any asset do have, winning, try what's particularly to to maximize with sheet don't also - not our of be depends and about we what's we what's profile best right? win. where overall our be on we sort

a been assets into haven't out afraid we growing that one sell swap of so, not And is. that's it to market or

is would to multiple buying four, question, that And those we anything past said the years want it's want times escalates that up year X.X; valuation is EBITDA four than exit the end the Pay themselves. of at with now, a might three. is really is and multiple end X; in us me, as something in sell back So would we represent we at more But blocks three end will to more multiple And wanted it end year the a year. of on they do in end it it's X. at the just multiple the end that asset a the at exit not that put the end us that is of kick not other at - to well, But basically as partner, do partner tradeable. worth early. out particular come year at negotiation is wanted us it's year if asset that sell exercising they MGM's And us like right. can worth to your would at They on not asked the of now, excuse to be freely then future. that. assume and out the then we we're and - discount. It's then buy if seven it's early and not party. at point, doing for MGM rights the and they a rights, to And third have be restrictions sell those overtime it. it It's the exit multiples out be doesn't them. year got to The the five, of whatever the in of

of be all that, all was investors, we'd by And lot was So we're we think not as REIT working that to But conversation. our the to I was have willing make of worked is ultimately to the kind investment first impacted through wanted brought the really haven't this a up of we that successfully by partners. that. and through have conversation transaction. sure And

any now And that and sort to adjusting so, reflect be the about be way we're accounted won't to that repayments very of would we're we the confident definitions impacted for. talking them

gaming But play. too, early to anything a - any And right, open be had it discussions covered else diversification you that. exit some we in to can haven't about down if But I like some or debit. viewed wanted think point we'd it. time, always as David? real some It's we I exit we money it, pay at and great make So

David Farber

Yes.

Alfred Liggins

know I any my - So is by they they're the it, EBITDA XXX of do trajectory going announced is upside And as think, high understanding to They think I planning they don't talking think XXX go I you feel what and but on to are rate probably when that information, confident. those them. I inside to EBITDA. the guys like run know, in haven't to me they right? their XXXs to was what given and based there maybe of XXXs, to think higher that like it. So how this

if a probably So to. willing sell I we need to discount it's significant going conversation. around, a out if don't but investment. at don't more. been But be we some we think And certainly it's certainly stick nice want today, it's worth to - have we'd - to particularly

Peter Thompson

the steady out cash the stream moment. and so I flow at other think things, looks Yeah, X% two

anticipating year. $X we're this So for million around calendar

they Given one another that - be that bank or have that conversations. mix of And we made securitization to in us I about about stream, investors had revenue way grow. We guess for would table is monetize. had two couple the potential maybe think of of the ask and which preliminary slots we games, to changes there a

But, monetize sell to I way to We to having haven't back gone track. MGM. far down that's that guess, another without potentially

an we something might appropriate consider it's So time.

David Farber

any if Okay. helpful. that radio - active you I for hear has me. But all, were the hear discussions, that thought I'm was radio I there. the at I switch number made curious your curious or just finally that And on side of any of house. minute. Alfred for had had any of gears seemed And a if Entercom large guys the thoughts not familiar stations. with Thanks. I'm to to just into you if its a But curious That's those touch It thoughts. you it way like some if swaps Peter a I'd have to if as them. of amount or about implications appreciate public. wanted thoughts. in be that's

Alfred Liggins

saw participate. San Sacramento. stations of Yeah, stations we that didn't focused, of whole no, were Francisco, in Boston, were those out a number line-up markets Urban stations, I weren't we the of of two - of and Most we think didn't group that markets, the yeah, in, more there that only

will I've I for think before, us looking allow said as we're that transactions to delever.

delevering parameters be end-market generally highly to those those cells to them these the - accretive want we in So transactions. lend - and generally are

- with Richmond, So really we didn't participate Entercom. Richmond, they we're and difference in our transaction as at all. And of other than iHeart having and only now a our radio of swapped new because against Seattle competitor and instead Richmond, for against group. Chattanooga competitor competing direct Entercom That's in iHeart so Boston relates it whole sort in the the they're to the competing

David Farber

Okay. Thanks, guys.

Alfred Liggins

Yeah.

Operator

[ph] Next, with ahead. [Brian go Dennis] of line the Cowen. go we'll to Please

Unidentified Analyst

Hey, questions. guys. the taking Thanks for

associated with the expand is could expenses additional that? a the rights, on what exactly Just global you bit couple, a music

Peter Thompson

its essentially deal that upon marketplace. a is rights has company new own imposed collection the That

want to per music we that in deal then have licensing recordings sign you up us a which play is in to to artist, addition If expense. to $XXX,XXX quarter ongoing our costing liabilities by

Unidentified Analyst

believe seeing Thanks. confident then radio you that just lead that? And know commented you will are thing, to now Great. What guys marketplace stabilize. the that, another your that in you I

Peter Thompson

being positive, in We And up positive, a our ex-political we've X.X%. first significantly touched on segment only are down to X%. in radio positive. fourth the been while quarter It's third obviously, time I pacing, mean, which that's quarter that slightly better. But

or sequentially, look better than QX you QX QX. is If

not hit political also I being X.X% last big sequential we're going in mentioned, outperforming be in that Obviously, that to is and markets. quite we'd going down markets three quarter, including is Miller recur. that handily down seeing the of guess, fourth in pacing million we're our Kaplan numbers. there came bad. improvement and Hence, And some in our So I $X be get that four mid-single-digits. because of positivity also to we're won't year

think… I

Alfred Liggins

politically - of Kindly yeah, non-political…

Peter Thompson

is pretty right, non-political actually up a that in market well. Yeah, think the holding we year,

Alfred Liggins

think a has were great mean, the be some up said, of much it's a use that consolidation. look be it's growth in rep to I've of and you themselves over But firm other quite now, if et you they're traffic media want that don't Yeah, I industries, small been it's well. I resilient but industry very Look, because advantage now, additional so players. as got again. ultimately, at times these a controls And structurally - structure unfair can got our at I radio so held that's industry and the cetera if player and - freefall. conferences. not. on structured word to that calls one that's traditional But inventory, fixed lopsided an not number it's big it'd that's by mature. But we It's able the something

cable and Entercom doesn't in swapping we we then in create markets; up industry the end markets, that, scale. company It And around more economies of us it up being mean out. that mean and the you needs of bigger; rest assets. sell industry. XX like the CBS, to Our like necessarily to you And instead with bigger of happen XX something and may a getting end get needs

get do that needs to be some you so fix sort there operating more get And can I some structural happen, think. as leverage, so, stabilization pricing well. of not only And you if maybe

Peter Thompson

Yeah.

Alfred Liggins

question. Next

Operator

in I'm this the time, questions at showing no Instructions] And queue. [Operator

Alfred Liggins

Thank you. is offline questions, to always support we'll are additional available and everyone's appreciate We you call. I and there if Peter further for color. any Well, talk next no

Operator

your for today. using Teleconference for And your and you. Executive does ladies Thank AT&T Thank that and Service. you participation for conclude conference gentlemen,

disconnect. You may now

Urban One (UONE) 2 Nov 172017 Q3 Earnings call transcript