Urban One, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to Urban One's 2020 year-end earnings call. At this point, all the participant lines are in a listen-only mode. However, there will be an opportunity for your questions, and instructions will be given at that time. If you need any assistance during the call, please press star, then zero, and an operator will assist you offline. As a reminder, today's call has been recorded. I've been asked to begin this call with the following Safe Harbor statement. During this conference call, Urban One will be sharing with you certain projections or other forward-looking statements regarding future events or its future performance. Urban One cautions you that certain factors, including risks and uncertainties referred to in the 10-Ks, 10-Qs, and other reports it periodically files with the Securities and Exchange Commission, could cause the company's actual results to differ materially from those indicated by its projections or forward-looking statements. This call will present information as of March 18, 2021. Please note that Urban One disclaims any duty to update any forward-looking statements made in the presentation. In this call, Urban One may also discuss some non-GAAP financial measures in talking about its performance. These measures will be reconciled to GAAP either during the course of this call or in the company's press release, which can be found on its website at www.urbanone.com. A replay of this conference call will be available from 1 p.m. Eastern Time, March 18, 2021, until midnight, March 21, 2021. Callers may access the replay by calling 866-207-1041. International callers may dial direct 402-970-0847. The replay access code is 185-4247. Access to live audio and a replay of the conference call will also be available on Urban One's corporate website at www.urbanone.com. The replay will be made available on the website for seven days after the call. No other recordings or copies of this call are authorized or may be relied upon. I'll now turn the call over to Alfred C. Liggins, Chief Executive Officer of Urban One, who is joined by Peter D. Thompson, Chief Financial Officer. Please go ahead.

Thank you, Operator, and also with us today is our Chief Administrative Officer, Aaron Wishart, CFO for TB1, Jody Brewer, and our General Counsel, Christopher Simpson. The fourth quarter year end results are out, a bit anticlimactic given that we've released much of this information already in association with that we did. repeating a good story is always fun and the kind of year that we experienced given the pandemic and the depths of despair and the uncertainty to have rallied in the fourth quarter amid playoffs and cost cuts rallied in the fourth quarter to actually host a year that was greater than 2019 is really testimony to our amazing management team that really sucked it up, worked hard, endured all kinds of unprecedented work conditions, and I'm truly grateful. I know our investors are also appreciative. They showed that appreciation with support of our global refi that put us in a much better position extending out our maturity significantly and seeing our cost of capital also significantly so with that I am going to turn it over to Peter to go into the details of the numbers and then I'm going to add a little color afterwards about a new initiative that we're working on and then we'll take some questions Peter

Thanks, Alfred. So net revenue was up 7.3% year over year for the quarter ended December 31st, 2020 at approximately $113.5 million. This is sequentially up by 23.5% from third quarter revenue. The radio segment net revenue was down 3.2% year over year in the fourth quarter, but was up 37.5% from third quarter revenue. This is a significant sequential improvement from second quarter, which was down by 58.4% year over year, and the third quarter, which was down by 31.9% year over year. This includes approximately $11.5 million of net political advertising revenue. Excluding political, radio segment net revenue was down by 27.7% year over year. National ad sales for the fourth quarter were up by 29.1% year over year, while local ad sales were down 13.7%. Driven mostly by historically high political advertising revenue, our Atlanta, Charlotte, Philadelphia, and Raleigh clusters had the most significant revenue growth in the fourth quarter. Our Washington, D.C., Baltimore, Dallas, and Houston clusters had the most significant revenue declines As previously announced, as part of the station swap with Entercom and the station sale to Gateway, we exited the St. Louis market. We gave up WTEM in Washington, D.C., and WPHI in Philadelphia, and we gained three new stations in Charlotte. Looking at categories, all the categories except for government were down year over year for fourth quarter. Entertainment, travel, automotive, telecom, and retail had the most drastic declines, followed by financial health care services and food and beverage. First quarter 2021 pacings are currently down approximately 17%, excluding political revenues, and minus 20% with political. Excluding political by month, January was down 28%, February down 20%, and March is down 2.5%. Obviously, these are tough comps against pre-COVID months, and also those months included significant political revenues, but we have seen a significant improvement in March pacings over the past week. Net revenue for Reach Media was up by 28.1% in the fourth quarter, and adjusted EBITDA was up by approximately $2.5 million year-over-year, including $1.6 million of political revenue. Demand for network radio targeting African Americans was more robust than either local or national radio demand. Lower operating costs are the result of lower talent and compensation expense in the wake of Tom Joyner's retirement at the end of last year. Net revenues from our digital segment increased by 70.7% in Q4, driven by the strength in direct advertising sales at I1 Digital. including $1.1 million of political revenue, and as a result of increased demand from brands to engage with African-American audiences on digital platforms. This contributed to adjusted EBITDA growth of approximately $5.6 million year over year. We recognized approximately $45.6 million of revenue from our cable television segment during the quarter, an increase of 1.8%. Cable TV advertising was up 5.4%, excluding $1.2 million of political ad revenue, and it was up 11.4%, including political. Cable TV affiliate revenue was down by 5.6%, with rate increases of approximately $700,000, offset by churn of approximately $2.1 million. Cable subscribers as measured by Nielsen, finished fourth quarter 2020 at $51.4 million, down from $51.8 million at the end of the third quarter. We recorded approximately $1.6 million of cost method income, less administrative expenses for our investment in the MGM National Harbor property for the quarter, compared to $1.7 million for the same period last year. Operating expenses excluding depreciation, amortization, impairments, and stock-based compensation decreased by $8.1 million, or 9.9%, to approximately $74.1 million in the fourth quarter. TV programming content expenses were down by approximately $2.6 million. We also incurred savings of approximately $1 million in radio station special event expenses, $1.1 million in contract labor, talent costs, and consulting and professional fees, approximately $800,000 in reduced travel and office expenses, and about $400,000 in reduced or delayed marketing spend. Radio operating expenses were down 22.6%. The radio SG&A expense line was down by 23%, mostly from the cancellation of station events and discretionary marketing and promotion expenses. Radio programming and technical expenses were down 21.7%, mainly from lower employee and talent compensation and reduced music royalties. Reach operating expenses were down 3.8%. Programming and technical expenses were down 17.8%, driven by lower talent and employee compensation expense as a result of the post-Tom Joyner morning show programming restructure. Reach SG&A expenses were up 29.4%, mainly due to a non-recurring favorable true-up of event expenses in the fourth quarter of last year. Operating expenses in the digital segment were up by 4%, driven by higher cost of revenues and sales commissions. Cable TV expenses were down 7.8% year-over-year. Programming content expenses decreased approximately $2.6 million. Operating expenses in the corporate and elimination segment were up by 11.6%. driven by partial bonus accruals for 2020. For the fourth quarter, consolidated broadcast and digital operating income was approximately $51.9 million, up 51.3%. Consolidated adjusted EBITDA was $41.7 million, which was an increase of 51.3% year to year. All of our operating segments posted double-digit or better percentage growth in adjusted EBITDA for the quarter. Full year adjusted EBITDA was $138.0 million, in line with the previous guidance that we gave around the refinancing. Interest expense was approximately $18.7 million for the fourth quarter, compared to approximately $19.8 million for the same period in 2019. The company made cash interest payments of approximately $23.4 million on its outstanding debt in the quarter. Benefit from income taxes was approximately $13 million in the quarter, and the company received a net cash refund of $395,000. Net income was approximately $26.4 million, or 58 cents per share, compared to a net loss of approximately $7.9 million, or 18 cents per share in the fourth quarter of 2019. Capital expenditures were approximately $622,000 compared to $1.2 million last year, Net debt was approximately $781.8 million, compared to $138 million of LTM-reported adjusted EBITDA for a total net leverage ratio of 5.66 times. On January 25, 2021, we successfully refinanced all of the company's existing debt with cash on hand and an $825 million secure note at a rate of 7.38%, which is due February 1, 2028. This transaction simplifies the company's capital structure. It significantly extends our debt maturities, and it also reduces the interest expense. Under the company's 2021 ATM program, as of March 17, 2021, the company had issued and sold an aggregate of 420,439 Class A shares and received net proceeds of approximately $2.9 million. And from the inception of our ATM programs to date, we've sold a total of 4,745,541 Class A shares and received net proceeds of $26.9 million. Also, on February 19, 2021, the company closed On a new asset-backed credit facility through Bank of America, the new ABL facility provides for up to $50 million in revolving loan borrowings, and the line of credit is currently undrawn. And with that, I will hand back to Alfred.