Urban One, Inc. · NASDAQ:UONE
Urban One — Investor Presentation (October 2018)
25 slides from Urban One's investor presentation, Oct 9, 2018
Slide 1: Urban One – Representing Black Culture
URBAN ON= REPRESENTING BLACK CULTURE October 2018 | CONFIDENTIAL Ul
Slide 2: Safe Harbor Statement and Non GAAP Financial Measures
Safe Harbor Statement and Non GAAP Financial Measures SAFE HARBOR STATEMENTThis presentation and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe-harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995. T
Slide 3: Today's presenters
Mr. Liggins has been CEO of Urban One since 1997 and President since 1989Mr. Liggins joined Radio One in 1985 as an account manager at WOL-AMIn 1987, Mr. Liggins was promoted to General Sales Manager and promoted again in 1988 to General Manager overseeing Radio One’s Washington, DC operations Alfre
Slide 4: America's Largest Urban Lifestyle Media Company
15 large urban markets59 radio stations150+ DJs and 250+ events Award-Winning and Critically Acclaimed Programming 8 Top-Rated Radio Personalities, National Radio Programs and“Must Attend” Events Revenue$175m (40%)EBITDA $64m (36% margin) #1 local radio in target demographic #2 cable networkin targe
Slide 5: Key Investment Highlights
Key Investment Highlights Leading radio, TV and internet brands targeting African-Americans Name change to Urban One, Inc. to reflect broader business model Non-radio businesses are over 50% of total revenue and Adjusted EBITDA Meaningful cross-selling as a fully integrated multi-media platform6.67%
Slide 6: Key Investment Highlights
Key Investment Highlights Fast growing demographic: projected 2016-2025 9.1% AA vs. 6.5% for the general populationHeavy users of audio / video media, video games and social media TV One viewers and Radio One listeners participate less in digital transition given slightly older age skew Compelling t
Slide 7: Strategy
✓ Continue to de-lever, using FCF to pay down debt. Strategy ✓ Maintain and grow market share; continue to re-engineer the cost base. ✓ Participate in future industry consolidation, as a buyer or seller. ✓ Holding to guidance of ~$140m of Adjusted EBITDA for 2018, with net leverage in the low to mid
Slide 8: Strategy
✓ Find de-levering and value creating M&A opportunities in radio, TV and digital. ✓ Preserve existing TV distribution, and pursue new distribution opportunities including OTT, and the launch of a second network. ✓ Make prudent investments in TV content to increase delivery. Strategy
Slide 9: Compelling demographic and consumer trends
Large US African-American population base in 2016 43 million 13.2% of US population Compelling demographic and consumer trends The value of the black consumer is greater than ever before Projected US African-American population growth 2016–2025 +3.9 million 14.3% of US population 9.1%African Americ
Slide 10: Radio One
Radio One The largest radio broadcaster primarily targeting the African-American community 59 radio stations owned / operated in 15 of the top 36 AA marketsUrban One programming is available on over 200 non-Radio One stations 15 million listeners weeklyNational leader in African-American syndicated
Slide 11: Reach Media overview
Leading radio show syndication network of African-American programming & contentReach syndicated radio shows dominate urban adult contemporary, urban and inspirational programmingThe Tom Joyner Morning ShowThe Get Up with Erica Campbell ShowThe DL Hughley ShowThe Rickey Smiley Morning ShowThe Russ P
Slide 12: TV One overview
#2 cable network targeting African-AmericansHighest composition of African-American viewers (88% of audience)Current Nielsen subscribers of 58 millionContinued strong operating performance1H18 Adjusted EBITDA increased 10.5% yoyLTM Adjusted EBITDA of $88 millionLTM Adjusted EBITDA margin of 47% TV O
Slide 13: Cable networks for Hispanics vs African-Americans
The number of cable networks for Hispanics is 5x the number of African-American networks Advertisers have fewer choices for targeting African-Americans than those seeking to market to Hispanics African-American networks Hispanic networks # of African-American cable networks: 8 # of Hispanic cable ne
Slide 14: Performance of TV One has been impressive
Performance of TV One has been impressive Revenue composition ($ in millions) 48.5% 52.1% 50.8% 51.5% 47.9% 49.2% 49.1% 50.9% 45.3% 54.7% Source: Nielsen, National TV Toolbox, L3 Subscriber monetization trends ($/subscriber)
Slide 15: Performance of TV One has been impressive
Source: Nielsen, National TV Toolbox, L3 EBITDA and margin Nielsen Subscribers and household ratings Performance of TV One has been impressive ($ in millions)
Slide 16: TV One distribution agreements
TV One distribution agreements Commercial Load - 18mins/hr monthly average (inclusive of 2mins local and any promotional time). All MSOs’ contracts reflect same rate card with planned annual escalators
Slide 17: iOne Digital
iOne Digital iONE is the dominant player in the digital Black culture space. *Numbers based on 2018 August comScore.Blavity is not comScore rated
Slide 18: iOne Digital key passion points
We bring a unique voice to the culture by key passion points iOne Digital Gossip & News Men’s Lifestyle Millennial Viral Culture Celeb News & Entertainment for Women Hip Hop News& Culture Women’s Lifestyle Black News & Social Justice Black Targeted Social Network Cassius Network
Slide 19: One Solution Overview
One Solution Overview AWARD-WINNING BRANDED ENTERTAINMENT AND CUSTOM CONTENT STUDIOPORTFOLIO OF AWARDSRecipient of 13 awards in 2017 including Best Branded Content Studio (Telly, ANA Multicultural, NAMIC EMMA and Model D - Cynopsis)DIVERSE TALENT BASEFormer brand managers, publicists, media strategi
Slide 20: Diversified advertiser base
Diversified advertiser base
Slide 21: MGM National Harbor investment
Urban One invested $40 million from cashMGM National Harbor opened in December 2016In return, Radio One receives:6.7% ownership1% of net gaming revenue, $9.9m accrued in first 7 quarters$1 million in advertising revenue from MGM for 5 yearsMGM National Harbor expected to generate net gaming revenues
Slide 22: Current capitalization
UL Current capitalization Asof Cum. Sinmilions) Rate Maturity 6/30/2018 leverage Cash $37 ABL due Apr'21 (625mm) L+475 4/21/2021 = Term Loan due Apr'23 L+400 4/18/2023 346 7.375% Sr Sec Nts due Apr'22 7.375% — 4/15/2022 350 Total secured debt $696 5.0x 9.250% Sr Sub Nts due Feb '20 9.250% 2/15/2020
Slide 23: Summary free cash flow profile
Summary free cash flow profile
Slide 24: Delever with free cash flow
Ul Delever with free cash flow .™ (8 in millions) 6/30/2018 pf +12 mos pf +24mos pf +36 mos pf +48 mos Adjusted EBITDA $140.2 $140.2 $140.2 $140.2 $140.2 Unrestricted Cash (ending balance) $36.0 $20.0 $20.0 $20.0 $20.0 Free Cash Flow $45.2 $45.2 $50.8 $55.5 $60.7 Contingent Liability 25 16 0.7 Term
Slide 25: Ul
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