UONEK - Earnings call 2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Urban One 2021 Second Quarter Earnings Call.

As a reminder, this conference is being recorded.

We will begin this call with the following safe harbor statement.

During the conference 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 follows in Commission forward-looking those to and the its differ One materially certain company's indicated risks factors, uncertainties that cause from Urban the Exchange by actual projections and XX-Qs and statements.

corporate One's are authorized the or XXXX, X, will XXX-XXX-XXXX, with for August the XXXXXXX. (XXX) conference at replay X dialing copies or this call will today, in its measures as call. or of its disclaims replay the www.urbanX.com. conference and this Please XXXX. forward-looking Urban One XXX-XXXX available be audio any This Urban in following to access also These XXXX. the number: statements on days In company's Replay One course made No on may call of the to XX:XX also talking note this will XX:XX p.m. be discuss relied Urban code financial calling www.urbanX.com. replay available after available presentation. live will performance. on GAAP X, the made The this will this either call, website some can be website other access during of Eastern website, be August present measures any X, Access duty information reconciled the about of upon. by Time update may which a Standard may press recordings of or that in call be release, from X Callers until to of found be the non-GAAP August

joined the call ahead. Peter Liggins, to Liggins, by One, will Thompson, is who Chief Executive now please C. Financial go Chief Officer Mr. of Urban Officer. I Alfred turn over

Alfred Liggins

Jody Counsel Urban Drewer, you, One Kristopher also thank at Officer Peter our welcome is TV and our to call, Chief conference and everybody, joining at second General and One. quarter operator, results I Financial and you, also Thank our Simpson,

our have results release. issued press We in the

hopefully, vast you've a outstanding behind we although, so the get the great Happy the majority news. had an And not of We effect lows potential reinfections of mask the woods the as really yet from like bounce to us, COVID quarter, are seen COVID. the there's all but we're off good end tunnel. light starting the know, out we at with feel and mandates, to of

business has interest see, at all way And is African-American-targeted, belief our considerably management there the addition, market major positively is in not a it's And is has and through toughest team, take for really went divisions handled we this that the into on and very the times it. now coming in side positive pace. the at clipping advantage than the themselves team momentum nice significant advertisers impacting which great across to environment poised pandemic the the in time. and extraordinarily our spectrum, different well moment a and systemic been through stronger is along really change of that the to platform, radio The And level of platform and business. all a in has this from really economy the the proud our of African-American-owned my it's other

So lot wind our we a sales. got in of

our update to decided we end, year-end that guidance. To

QX. this going last this strong We exceptionally happen of to guidance at millions. to what's very an people doing depend us year. of comfortable point the $XXX increasing We had lot been have kind EBITDA the A in to to that time of year. QX We're rest going about of year the mid-$XXX million of is guiding on

see out. play that's to to need how now going we So all

land. to don't just out it's we to it's know know going better than We going thought. we exactly play So where

news So be the there more on could good horizon.

an turn numbers. our the I'll to And you going then a after lot progress. of I'm all Casino progress go to that, in of give steady Peter to detail the on efforts we're making update good over into gaming Richmond where it the

And you we'll then an go and give there, into so I'll update Q&A.

So Peter?

Peter Thompson

Thanks, Alfred.

up last year-over-year, the at up XX, division QX national was the ad revenue second up quarter XX% compared quarter. net by Local sales up were advertising was were So June Net million. sales while year-over-year, XX.X% XXX.X% year. revenue $XXX.X ended in XX.X% approximately to for for XXXX, Radio year-over-year

telecoms by advertising back, was driven All largest year. up from Government services, & firms followed was retail, the which were platform continues and adjusted category the by improvement with an categories revenue increase major high-margin million is a which by coming into be vaccine to automotive then last outreach fall $XX.X of Radio of and Public driven up EBITDA, XX.X%. law of year-over-year. was by the COVID-XX XX%

QX advertiser third in Media strong. pacing is And expect revenue The is the quarter also Net up increased million approximately up XX.X% second demand core over XX%. up year-over-year. finish outlook to driven by for in for audience. XX%. the $X.X African-American was radio quarter, for radio up EBITDA we QX by by over Reach by was XXXX currently the Adjusted

Net increased $X.X revenues brands QX, approximately increased And our quarter digital in Digital. advertising in for year-over-year segment. iOne growth by EBITDA million sales the for adjusted by million our continued target for $X drove demand black-owned at segment Digital in direct and

by recognized of cable a drove was XX% up demand We CLEO million. of advertising $XX.X approximately was Increased unit the TV television revenue average revenue segment ad XX.X%. quarter, and rate Cable about revenue XX.X%. increase million up an $X.X our increase during TV from

of ADU million, was churn. X.X%, by TV offset increases up revenue approximately gains. partially rate with $X However, by affiliate offset partially Cable these

for TV QX Nielsen subscribers the underlying XXXX subs. paying same the not million XXXX. in Harbor recorded of to only MGM The XX.X year for and the $XX.X compared We reduction had as less at method period. million X.X% by approximately finished our $X.X for the administrative investment CLEO cost was One, of in Nielsen, million, National the just from by quarter in property and $X.X in down were QX, last measured down $XX.X reflective Cable million million subscribers which for end $XX,XXX at trend expenses Nielsen subscribers, income of

depreciation, QX and million impairments excluding compared to XXXX to $XX and $XX.X stock-based of in QX $XX.X amortization, in increased of in compensation, expenses, approximately million Operating XXXX. million QX

TV segment business compensation services environment. spending approximately increased quarter, the by and program a and to $X.X by mostly million. $X.X temporary Revenue cable million, signs of by of $X.X $X.X healthier in content $X.X in XXXX. increased Outside of million, increased expense million Employee expenses expenses television by increased million reversal increased Marketing mainly the salary at due variable promotional amortization all cuts One. by

professional corporate fees which to increase expense added as administrative in back general the increase both as an One are to The selling, well to award, gaming a due opportunity TV charge adjusted of primarily related EBITDA. and noncash for CEO's is Richmond the in

up sales. expenses Operating against by $X operating operating expenses and million, higher and were due Employee segment expense driven Radio expenses down. up expenses by of and related the variable employee traffic revenue to severance bad higher were million and costs a by compensation. digital in compensation commissions were $X.X million, acquisition X.X%. affiliate compensation increase Reach talent $X were were expense while up, debt predominantly up mainly and to station

XXXX. approximately up from were Cable spend XX% marketing expense increased year-over-year. are campaigns was that and $X were some media Sales expense $X.X increased programming, million commitments by marketing Programming content deferred approximately catching up driven to and million. up on TV support we expenses by also contractual

professional the fees expenses Award. noncash charge Operating segment related up in due Corporate to corporate were increase for activities Employment development million by for CEO's Casino the and Richmond an and $X.X in the venture Eliminations to Agreement a

digital second higher XXXX. increase Consolidated of increase year-to-year $X.X was $XX.X consolidated and broadcast than the XX.X% XX.X%. $XX.X quarter income million, operating was approximately second million, and quarter, million of For adjusted an EBITDA of the an

All divisions our first are ahead for the of of X the our operating of budget year. months significantly

our of business course, mid-$XXX costs. casino Given and of guidance. closures EBITDA the an millions adjusted COVID-XX a to pandemic subsequent full guidance we've to raised strong this have impact the would, the resurgence excluding year adverse chase Obviously, performance,

expense X Company period million the quarter $XXX,XXX Interest payments approximately of for million the quarter, for compared to approximately in debt semiannual due XXXX. X. quarter, interest August taxes same payments paid second and was million service are February cash Provision of on was and the the $XX.X in the made in approximately cash for as $XX.X $X.X company income approximately taxes $XXX,XXX.

$X.X were year. approximately share to Net $XX.X $X.X XXXX. Capital million million $X.XX per second $X.X approximately quarter expenditures million for per or million compared compared $X.XX was to or last income of share approximately the

of proceeds and sold and million. X,XXX,XXX A quarter net issued the shares Company during approximately $XX.X Class received

Ending total unrestricted leverage million. debt of reported million compared was Net of XX, XXXX, gross was June $XXX.X total net $XXX.X of was approximately million. $XXX EBITDA million adjusted As $XXX.X for a X.XXx. to cash LTM ratio debt

And I'll back with hand Alfred. to that,

Alfred Liggins

Thank you, Peter.

really given of year. stay to lower was it this QX. we this again, going to fourth those lot strong results. quarter at the is likely again, at to of leverage Leverage with year than is But end So although come mid-Xs continues end where down, where ratio not happy be it's so the last ratio certainly were a

So excited super about that.

that have a community to the in court. have signed host efforts. sign done cleared that. voting put even Council. all the Board to City on order that submit courts get and the obviously We've ballot to host and give agreement to August courts, the happened community the pre-certification to had got to, location we voted to and to the have We XX and operator to the before And community Richmond went City on the allow believe, the to November order courts it referendum. Casino -- check it Council City Update X has the to through hurdles We've submitted order been casino host by I the The for agreement the in passed Lottery the an agreement. -- Virginia courts. do

we that court marketing week waiting additional for the and we're educational So the referendum, in now this of an its started casino benefits that campaign about although project started order, the educational begin the to has do official can so -- for Richmond. company city

back take And And -- in battle. our selected competitive was after the and we done polling recent if polling done the you we selected did We see general good locations to and on for along. then signs All the in as going during of used. very we're and in the right granted saw We RFP gaming. done of dollars, battle. at have go did lows, the of testing of first lobbying and our support payer got we polling were city, been heat some about But feeling May XXXX. the we've people again the project polling. referendum. started polling 'XX commercial. those how looking assembly tax first We've city the the heat We we television it's the in being I We've we very, when we in right a March were anything quarter from -- 'XX. polling polling did for no tax did right although when can't feel good once site small of submitted no to gaming for all the We dollars improvements hard our will, of favorable, about

the it's opportunity One and and So city great stakeholders. for state. to the its to a revenues And obviously, Urban significant

in As, the on at the done, been and to the because particularly alone, opportunity. subject increase lot not extraordinary price people comment what at that we where shares happens to the results no the wild the But As the media tend trade between -- company in lot on the Class expected Casino seen swings tend UONE all on we economic business interest have of Richmond difference to interesting, event, a a the significant an that Class this kind I end talk and wanted there's price of the refinancing and rise. stock demand make just day, we've to necessarily what K stock this up it's really the retail So based focus always we of range to of our about on with premium time know and of should the on I people it's to and a year of our and be UONEK down. us and expect the where UONE at irrespective based be any EBITDA and of based got after the UONEK kind based shares. But the just

by divided you value EBITDA any interest. and multiple using sort in debt number gets the you price net Just MGM and in our neighborhood of a on it's backing the in, our got to Xx out that to of a and for our factor shares outstanding stock hidden

has have flow share is our to So when has a has down, our for and we've been we it, company. -- of radio multiple I to -- been increasing. even about kind Xx, down. where that we of sector cash use coming think to kind the a opportunistically continue which in waiting much up particular, leverage I, of price been line and catch been performance our to leverage reasonable of in with lot a because diversified the issuing get more help And been equity And though we're about steadily think

before. sort of it analysis get I of so how a value stock questions given And about I've we my of the price. lot

wanted that it -- the and I that was rise, depressed performance $X. that, a although just may seem then, lot's of happened Again, off and very was in the refinancing, add I improved where high of since it in including believe favorable year COVID so a ago, of a was it dramatic kind the deleveraging. And Xs. to because

for operator, to So open that, the questions like from anybody. lines up with I'd

Operator

ask [Operator with Wang a several Instructions] we Investments. to Patrick people Voya And have line the We'll to up go queuing of question.

Patrick Wang

last follow and Could between tell on up UONEK? B comment your you the shares A shares the shares. just Could us you difference the on just UONE

Alfred Liggins

Yes.

vote. -- the with UONEK -- U get -- X are basically vote come got the They've the have vote. So And no they UONE shares shares. it's shares they a

voting vote we So the that went a public, that had held are in with Chairman, super we trade, shares shares has early that company myself The public when always been the XX:X went company, controlled that my don't A by mother, vote. have ultimately and the power. by

we shares by happened shares the trade. created during after dividend way ultimately, seats those 'XX, a we stopped basically did on liquidity shares forward. -- of the those there liquidity the controlled first year started for in major on time, is to now. and we years those did no UONE that we issuing in did the -- terms UONEK. the the the And they started Board of in and years. back decisions the over So decisions don't And vote are each issuing when going was Most for has trade stock top this UONEK and public went value. All and probably shares And other of we and

this of million and June into got swept retail we year, and Robinhood, that However, time, in of last sort at there's of like did shares in because shares point WallStreetBets, up spiked, only X.X they the interest, whole UONE outstanding.

get the At vote doesn't between it so move so if and difference. vote, really the to got the lot. X really you have on retail And were seen there's involved you've easy it but they economic happen a X much difference two. And that's no has the -- the they end, and UONE the

company opportunistic. has so been And the

are sell filings. our shares or of to seen we're a premium mean, those for if into it it at it, advantage trading equity I and good shareholders. and taking is delever You've level, which a high use we'll UONE

so -- what been And the that's X. that's of but the and difference explanation the between doing, we've

Patrick Wang

the shares? many shares And sold how for $XX of during A quarter that million you

Peter Thompson

The number exact million. X.X Yes. it, Call was X,XXX,XXX.

whisker a under million. X.X just So

Patrick Wang

of shares are So done with program raised the enough A you ATM money? you because

Alfred Liggins

our sense we time. is make which registered for ATMs one any for the to and at we going monetize to both us keep have because don't classes We most given plan up to shares know

crisis particular any there's I've that of learned if prepared. be So things this the to always financial -- during one I is think if

should to expect by always opportunity to be value a or have to up any ATM an of you advantage up to shelf us So selling able take shareholder equity. create

plan our always position act. that's to a So in to be

Patrick Wang

projects. the side guess I Right. assigning have trouble the equity casino for value investor a to

into ownership the go you putting equity. know I you're of of cash can economics maybe million the So just $XX that details the

And so...

Alfred Liggins

people And economics this the changed? I changed we from our that notified -- changed. have filings, Peter, have in That's think Kris, we've

Peter Thompson

believe time. X-K in Yes. that out in the statement the We the both at registration went

Alfred Liggins

Yes.

the the economics and $XX look, get of the to million, was we order So in changed company's pay the up. went about million. at Essentially, the million. the cost what million city the $XXX was of up to deal $XXX project needed It's went be to project project. it Originally, now $XXX going investment

put hook that for, it come it's local from pledges contractually and suspect to we this aren't although and those so million is out $XX be million. -- time that to to $XX maybe. the that But yes, will financing. Now that they the on then million $XXX going I to as probably do come investors of $XX closing committed but local the signed have up the million, in have at They to fill basically will easily on some is about investors, it point company

on is to of $XXX the So now the investment. be for about hook company going million

of up We of on top $XXX people public going line is entity, million given Richmond the favorable conference a knowledge tax got have it tax what Virginia owning we out think it. got favorable XX%, for XX% on will RFP where revenue has the the calls that rate. in submit state's not these officially City's end said -- a they the range. what thought the be rate Casino excuse the and for that said to state the they in me, the it's had -- I've conversations and based into of kind and casino somewhere backed we it have But I numbers between have

to be radio are similar our And very than so and that or to better pencil our could going TV of divisions. projections to out EBITDA kind

north could from that $XXX anywhere $XX -- the EBITDA right? million, be $XXX range expect projections, miss you So could be be million to of to million, could

radio One I $XXX about EBITDA last But our TV is million. And did think the XXs. year, division's in

my have statement that greater revenue, been another will division divisions. division. rival And our will interest of but has It the create both would our of So that doesn't this casino existing MGM the EBITDA of this another include opportunity arrival the EBITDA.

Patrick Wang

EBITDAR? referring to you're So

Alfred Liggins

a are either TV than much Albeit cable investments at these multiple valued well. radio as casino higher or

Patrick Wang

Right.

referring to of casino? So you're EBITDA the

Alfred Liggins

I'm sorry?

Patrick Wang

finance I rent, before silo. debt will within the assume project be EBITDAR, that additional

Alfred Liggins

be a project -- and its are Correct. will capital of equity. XXX-ish The it providing have will Correct. project finance. It own we stack will debt

is $XX stock another $XX local million. any the won't common going gaming million providing investors preferred partner to million Our are the of They about equity. and $XX own up put entity in to

Patrick Wang

What's But preferred. PXE is equity Right. the or interest XX% have to do they're they just... the XX%

Alfred Liggins

I just common own a they're in coupon don't what going single-digit the and equity That's they whatsoever. -- just it's said just straight I any said. to have entity

Patrick Wang

Well, are the operation? they going be to running

Alfred Liggins

is correct. in They filings, they That's partner. are our development our of They're operating our That's all this gaming again, -- and okay? -- are partner.

management them So And develop casino the have operate we're our working with behalf. to they agreement a to on it. will

Operator

the Jefferies. comes with question next Our line Morgan of Todd from

Todd Morgan

the all as usual. detail for Thanks

at is several in I or set that for environment accretive going it the forward to the know the been now being Alfred smaller the of deals of to don't Just opportunistic. last frank any just radio. as or swaps in kind different you -- for know see sort turning about if the that? all months? there's anything radio evolved plans or past, Is you've pretty like else as environment opportunity I ability

Alfred Liggins

same sets been hands. not mean assets owners and don't I changed is, matter I many the have think Look, changed. the fact the the have the basically of opportunity

not hardest I general got advertisers and a medium, in were to we the radio for radio, what in ones hot. because the operators, that is is of I've -- up. were a Townsquare, home and back a albeit Cumulus's and radio. that I then 'XX. continues particular, of happened other in to kind people riding they're numbers, think believe around that, guidance economic in hardest be good hit is coming environment the The 'XX guides changing a radio to have hit resurgence be like were at pandemic the audio has that's better our long projecting out. to some people disruption where near the numbers felt way Look, the really for the went cars. their Prior to just seen digital they already for out were and

what for at they happens end and So they're guidance 'XX. who the about bullish it, feeling raised 'XX, the h*** of but knows their

environment So always of radio the leverage I what pay radio. people think that's blocks, the there's people And will. and if -- all And was. were you of price willing to been everybody's for been But at the good hasn't where stumbling a regulatory end mismatch changed. the day, about expectation. That's -- always has

wants the changed value, believe owns to worth stabilized. not so a nobody right? radio stick and in used what want value to it, has is because that a to certainly believe for flow. business used then X% of only a their that's right? definitely stick there's believe much cash days radio top line where believe really the is don't radio And But growing really revenue interest not radio people. year. to look Well, who owns definitely public that's people from Xx seeing And believe, demand -- station has at at in They And who I I audio to talking more We're that station environment a advertisers. company that people's an not view old

is bullish threats, opportunistic. crazy business there's every because about it. plan be part the I'm So And it. media in We of still disruption to challenges,

value people bet each I'm these digital. radio, silos, it's that to when opportunistic And is TV, all our And us. in us it's what just that helping strategy different or and happy gaming diversification these and to create is, cable so whether sectors, ask of in be we've got

Todd Morgan

No, that's very helpful.

in it's different. pandemic. One programming -- dramatically have But kind on quick that where a guys Just it compared the of technical, to great cost holding side. the done you area, past, follow-up through costs certainly the was a those job down,

this you a go rate -- run percentage spend the is sort of of number a of generic going side, forward way need things, good kind to more to is I particular, thinking TV forward, least or a at about in on you think programming more mean, thing? of kind As kind on that

Alfred Liggins

on more they yes, we I Look, people, -- need -- TV spend you, programming what to spending happens have a right? are the in don't going so to want to you great the say tell it, programming. programming. programming. investment. we depend And in actually spend more distribution, But also we then a our on Look, you probably yes. don't if to if monetize not you And ton more to distribution wouldn't or the eyeballs asked it's it's

However, ways One of we the distribution to have CLEO. been looking TV increase and at

a upside. lot Our got new network, CLEO of

And have so think about optimistic a investments. We you'll for programming direct-to-consumer point therefore, feel I continued those new offering both at distribution see of opportunities And time. this networks. not do I do in

in DTC are lot So those at fuel And boat right? programming programming this investments programming in driven or we're when a time. not their you hear to Disney's investment, investment about of that offerings, so Viacom's point

we're the hoping I we're get thought our in we've the high of to be that's spend. right? So down, leverage million extra way hey, hope is is, terms particularly when eyeballs nervous spend to we've to we've to to out date, the people strategy a programming need when $XX you But think figure about a -- whatever -- and you ourselves always the to way it about opposed company in working And getting and run getting create uptake leveraged you hit get is of do into that could leverage order do make on park. If that that about leverage, to, can't and huge no would order and the we've this, so want as how right? see Xx to you you works to always have got there's been tell ball programming that our you to quality have range, horizon. that you're at programming I can out, number and programming the down got we position But Xx, out but to that close. to spend coming where investment, video we an in of But to and this big get successful got you then, yes, be we've distributed. programming in the got in our

to programming. in So telling in they're at more expect point moderate. just saying I'm investments moderate. never to time, make I'm not you us this They're they're sitting that here but increasing,

Operator

no are questions. There other

Alfred Liggins

to again Thank everybody, for support, you operator. if and quarter. else, joining to you Thank we'll you, We Great. anything appreciate Thank need we'll and call. your you, off-line talk the talk you next you.

Operator

Ladies AT&T center. gentlemen, again Thank that for does conclude you our today. the conference and for using teleconference

disconnect. may now You

Urban One (UONE) 5 Aug 212021 Q2 Earnings call transcript