Due to its operations being impacted by COVID-19, Urban One was unable to finalize and file its annual report on Form 10-K on a timely basis to meet its annual report filing deadline of March 30.
But, a SEC order made March 25 allowed for a 45-day extension, and Urban One took it.
On Wednesday, the filing of its annual report finally came — two weeks later than it initially thought it would.
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The April 29 filing of the 10-K report was initially expected to occur “on or about April 14,” Urban One said in its March 30 SEC filing.
But, with coronavirus pandemic restrictions including physical distancing and a remote working model implemented companywide, an audit of the results wasn’t the easiest task for all involved.
“As a result of these measures, the routine efforts of the company’s accounting and finance personnel to complete the audit and prepare the company’s financial statements and
disclosures have taken a greater amount of time,” Urban One CFO Peter Thompson said.
With respect to COVID-19 and its impact upon Urban One’s business and operations, the company provided a new “Risk Factor” in the annual report.
The “Impact of Public Health Crisis” statement outlines many of the 2020 outlook observations made by CEO Alfred Liggins III during Urban One’s Q4 earnings call on March 20.
Postponed, but nevertheless largely impacting Urban One’s Q2, is the annual Tom Joyner Fantastic Voyage cruise. Liggins notes that this was projected to bring in $10 million in revenue, and $1.2 million in profit, for the second quarter.
Scrubbed from the calendar is a Raleigh women’s empowerment event.
“Most notably, a number of advertisers across significant advertising categories have reduced advertising spend due to the outbreak, particularly within our radio segment which derives substantial revenue from local advertisers who have been particularly hard hit due to social distancing and government interventions,” Urban One said.
To protect the company in difficult times, Liggins revealed March 30 that Urban One has drawn $27.5 million from its asset-backed credit facility.
As of 3:35pm Eastern, Urban One stock was trading at $1.37, up 4 cents from Wednesday’s close. That said, CEO Liggins and his mother, company founder Cathy Hughes, remain the largest shareholders of the lightly traded stock.