URBAN ONE, INC. REPORTS THIRD QUARTER 2023 RESULTS

Rhea-AI Summary

Urban One, Inc. (NASDAQ: UONEK and UONE) reported a decrease in net revenue by 2.8% for the quarter ended September 30, 2023, resulting in an operating loss of approximately $56.1 million. The company's Adjusted EBITDA was approximately $34.1 million, down from $44.3 million for the same period in 2022. The CEO expects Q4 radio markets to be down approximately 14%, and the company plans to finish the year in line with prior Adjusted EBITDA guidance of $125-128 million.

Positive

• The company reported a decrease in net revenue by 2.8% for the quarter ended September 30, 2023.
• Operating loss was approximately $56.1 million for the same quarter.
• Adjusted EBITDA was down to approximately $34.1 million from $44.3 million for the same period in 2022.
• The CEO expects Q4 radio markets to be down approximately 14%.
• The company plans to finish the year in line with prior Adjusted EBITDA guidance of $125-128 million.

Negative

• The company experienced a decrease in operating income and net income for the quarter ended September 30, 2023.
• Broadcast and digital operating income decreased by 13.9% from the same period in 2022.
• The net loss was approximately $54.4 million or $1.14 per share (basic) compared to a net income of approximately $3.5 million or $0.07 per share (basic) for the same period in 2022.

Insights

Financial Analyst

The reported financial results of Urban One, Inc. reflect a notable decline in net revenue and a significant increase in operating loss year-over-year. The decrease in net revenue by 2.8% is an indicator of challenging market conditions or internal company struggles. However, the sharp rise in operating loss from approximately $18 million to $56.1 million deserves closer scrutiny. This could be attributed to a variety of factors, including increased operating expenses, impairment of long-lived assets, or a downturn in the company's core business segments.

Furthermore, the impairment of long-lived assets of $85.4 million is a substantial figure that suggests a reevaluation of the company's asset values, possibly due to changing market conditions or poor asset performance. This could have long-term implications for the company's balance sheet and future investment. The decline in adjusted EBITDA by nearly 23% is also concerning, as it is a key indicator of the company's operational performance and ability to generate cash flows from its core business operations.

Market Research Analyst

The broadcasting and digital industry is facing headwinds as indicated by the CEO's comments on subscriber churn in the linear TV business, which is a challenge across the sector. Urban One's performance can be seen as part of a broader industry trend where traditional media companies are grappling with the shift to digital and the loss of subscribers to alternative media platforms. The softness in radio markets and the expected decline in Q4 suggest that the company's short-term outlook might be under pressure, potentially impacting its stock performance.

Investors and stakeholders should also consider the company's pacing down in Q1 for radio, which may be indicative of ongoing challenges in the core business segments. The relatively better performance of Reach Media and Digital businesses could be a silver lining, suggesting that diversification into these areas may be a strategic focus for Urban One moving forward.

Economist

The financial results of Urban One, Inc. can be partially understood within the context of macroeconomic conditions. A decrease in advertising revenue, often correlated with broader economic downturns, could explain some of the revenue softness. The radio market, in particular, is sensitive to economic cycles as businesses cut back on advertising during downturns. The company's long-term debt position, with a fixed interest rate of 7.375% on senior secured notes, should also be evaluated in light of potential interest rate changes by the Federal Reserve, as this could affect the company's debt servicing costs and financial stability.

Given the current economic landscape, Urban One's financial health will likely continue to be influenced by both industry-specific challenges and broader economic trends. Stakeholders should monitor economic forecasts and industry trends closely, as they could have significant implications for the company's future revenue and profitability.

WASHINGTON, Jan. 11, 2024 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended September 30, 2023. For the quarter ended September 30, 2023 net revenue was approximately $117.8 million, a decrease of 2.8% from the same period in 2022. The Company reported an operating loss of approximately $56.1 million for the quarter ended September 30, 2023, compared to an operating loss of approximately $18.0 million for the quarter ended September 30, 2022. Broadcast and digital operating income¹ was approximately $43.8 million, a decrease of 13.9% from the same period in 2022. Net loss was approximately $54.4 million or $1.14 per share (basic) compared to a net income of approximately $3.5 million or $0.07 per share (basic) for the same period in 2022. Adjusted EBITDA² was approximately $34.1 million for the quarter ended September 30, 2023, compared to approximately $44.3 million for the same period in 2022.

Alfred C. Liggins, III, Urban One's CEO and President stated, "Third quarter came in right on top of our expectations, as discussed on our December 7^th Earnings call. The softness in our radio markets continued into Q4, where we expect to be down approximately 14% all-in, down 23% same station and down 13% same station ex-political, which is marginally down on our early December pacings. For Q1 radio, we are currently pacing down low-single-digits on a same station basis. Our Reach Media and Digital businesses performed relatively better in Q3, however subscriber churn in the linear TV business continues to be a headwind for the whole industry. Overall, we expect to finish out the year in line with our prior Adjusted EBITDA guidance of $125-128 million".

 

RESULTS OF OPERATIONS
		Three Months Ended September 30,					Nine Months Ended September 30,
		2023		2022			2023		2022
STATEMENT OF OPERATIONS		(unaudited)					(unaudited)
		(in thousands, except share data)					(in thousands, except share data)
				(As Restated)					(As Restated)
	NET REVENUE	$                        117,825		$                    121,250			$         357,346		$         352,038
	OPERATING EXPENSES
	Programming and technical, excluding stock-based compensation	33,903		29,490			100,304		86,359
	Selling, general and administrative, excluding stock-based compensation	40,142		40,918			126,634		111,321
	Corporate selling, general and administrative, excluding stock-based compensation	10,418		9,777			30,333		31,206
	Stock-based compensation	2,218		5,114			7,816		5,574
	Depreciation and amortization	1,808		2,505			6,291		7,391
	Impairment of long-lived assets	85,448		15,450			124,304		30,355
	Total operating expenses	173,937		103,254			395,682		272,206
	Operating (loss) income	(56,112)		17,996			(38,336)		79,832
	INTEREST INCOME	2,256		415			4,488		474
	INTEREST EXPENSE	13,983		15,310			42,023		47,123
	GAIN ON RETIREMENT OF DEBT	-		1,837			2,356		3,692
	Other income, net	75		2,021			96,535		13,732
	(Loss) income before (benefit from) provision for income taxes and noncontrolling interest in income of subsidiaries	(67,764)		6,959			23,020		50,607
	(BENEFIT FROM) PROVISION FOR INCOME TAXES	(16,778)		3,213			5,259		12,803
	Net (loss) income from consolidated operations	(50,986)		3,746			17,761		37,804
	Loss from unconsolidated joint venture	(2,728)		-			(2,728)		-
	NET (LOSS) INCOME	(53,714)		3,746			17,761		37,804
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	697		277			2,000		1,553
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$                        (54,411)		$                        3,469			$           15,761		$           36,251
	AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS
	NET (LOSS) INCOME FROM CONTINUING OPERATIONS	$                        (54,411)		$                        3,469			$           15,761		$           36,251
	INCOME FROM DISCONTINUED OPERATIONS, net of tax	(2,728)		-			(2,728)		-
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$                        (57,139)		$                        3,469			$           13,033		$           36,251
	Weighted average shares outstanding - basic3	47,629,163		46,625,484			47,514,722		49,504,238
	Weighted average shares outstanding - diluted4	47,629,163		50,206,608			50,373,714		53,171,793

 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
PER SHARE DATA - basic and diluted:	(unaudited)		(unaudited)		(unaudited)		(unaudited)
	(in thousands, except per share data)				(in thousands, except per share data)
			(As Restated)				(As Restated)
Net (loss) income attributable to common stockholders (basic)	(1.14)		0.07		0.27		0.73
Net (loss) income attributable to common stockholders (diluted)	(1.14)		0.07		0.26		0.68
SELECTED OTHER DATA
Broadcast and digital operating income 1	$   43,780		$       50,842		$ 130,408		$               154,358
Broadcast and digital operating income reconciliation:
Net (loss) income attributable to common stockholders	$  (54,411)		$         3,469		$   13,033		$                 36,251
Add back/(deduct) certain non-broadcast and digital operating income items included in net  (loss) income:
Interest income	(2,256)		(415)		(4,488)		(474)
Interest expense	13,983		15,310		42,023		47,123
(Benefit from) provision for income taxes	(16,778)		3,213		5,259		12,803
Corporate selling, general and administrative expenses	10,418		9,777		30,333		31,206
Stock-based compensation	2,218		5,114		7,816		5,574
Gain on retirement of debt	-		(1,837)		(2,356)		(3,692)
Other income, net	(75)		(2,021)		(96,535)		(13,732)
Loss from unconsolidated joint venture	2,728		-		2,728		-
Depreciation and amortization	1,808		2,505		6,291		7,391
Noncontrolling interest in income of subsidiaries	697		277		2,000		1,553
Impairment of goodwill, intangible assets, and long-lived assets	85,448		15,450		124,304		30,355
Broadcast and digital operating income	$   43,780		$       50,842		$ 130,408		$               154,358
Adjusted EBITDA2	$   34,142		$       44,341		$ 101,932		$               133,853
Adjusted EBITDA reconciliation:
Net (loss) income attributable to common stockholders	$  (54,411)		$         3,469		$   13,033		$                 36,251
Interest income	(2,256)		(415)		(4,488)		(474)
Interest expense	13,983		15,310		42,023		47,123
(Benefit from) provision for income taxes	(16,778)		3,213		5,259		12,803
Depreciation and amortization	1,808		2,505		6,291		7,391
EBITDA	$  (57,654)		$       24,082		$   62,118		$               103,094
Stock-based compensation	2,218		5,114		7,816		5,574
Gain on retirement of debt	-		(1,837)		(2,356)		(3,692)
Other income, net	(75)		(2,021)		(96,535)		(13,732)
Loss from unconsolidated joint venture	2,728		-		2,728		-
Noncontrolling interest in income of subsidiaries	697		277		2,000		1,553
Corporate development costs	1,594		287		4,317		1,871
Employment Agreement Award and other compensation	(845)		714		(2,663)		2,196
Severance-related costs	31		147		318		388
Investment income (expense) from MGM National Harbor	-		2,128		(115)		6,246
Impairment of goodwill, intangible assets, and long-lived assets	85,448		15,450		124,304		30,355
Adjusted EBITDA	$   34,142		$       44,341		$ 101,932		$               133,853

 

			September 30, 2023		December 31, 2022
			(unaudited)
			(in thousands)
	SELECTED BALANCE SHEET DATA:
		Cash and cash equivalents and restricted cash	196,202		101,879
		Intangible assets, net	651,886		765,191
		Available-for-sale securities - at fair value	-		136,826
		Total assets	1,192,050		1,344,646
		Total debt (including current portion, net of issuance costs)	715,636		739,000
		Total liabilities	891,519		981,973
		Total stockholders' equity	278,707		330,750
		Redeemable noncontrolling interests	21,824		31,923
			September 30, 2023		Applicable Interest Rate
			(in thousands)
	SELECTED LEVERAGE DATA:
		7.375% senior secured notes due February 2028, net of issuance costs of approximately $9.4 million (fixed rate)	$                         715,636		7.375 %

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements represent management's current expectations and are based upon information available to Urban One at the time of this release. These forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond Urban One's control, which may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially are described in Urban One's reports on Forms 10-K, 10-K/A, 10-Q, 10-Q/A, 8-K and other filings with the Securities and Exchange Commission (the "SEC"). Urban One does not undertake any duty to update any forward-looking statements.

During the three months ended September 30, 2023, we recognized approximately $117.8 million in net revenue compared to approximately $121.3 million during the three months ended September 30, 2022. These amounts are net of agency and outside sales representative commissions. We recognized approximately $40.2 million of revenue from our radio broadcasting segment during the three months ended September 30, 2023, compared to approximately $40.4 million during the three months ended September 30, 2022, a decrease of approximately $0.2 million. Same station spot, political and event revenue were down year over year but this decline was offset by an increase in revenue resulting from our Houston stations acquisition on August 1, 2023 of approximately $2.9 million and our Indianapolis stations acquisition in the third quarter 2022 of approximately $2.5 million. Based on reports prepared by the independent accounting firm Miller, Kaplan, Arase & Co., LLP ("Miller Kaplan"), the markets we operate in (excluding Richmond and Raleigh, both of which do not participate in Miller Kaplan) decreased 5.9% in total revenues. We recognized approximately $11.2 million of revenue from our Reach Media segment during the three months ended September 30, 2023, compared to approximately $10.1 million for the three months ended September 30, 2022, an increase of approximately $1.1 million The increase was primarily driven by the addition of four new networks and the addition of the U1 podcast network at the end of September 2022. We recognized approximately $20.4 million of revenue from our digital segment during the three months ended September 30, 2023, compared to approximately $21.0 million for the three months ended September 30, 2022, a decrease of approximately $0.6 million. The decrease was primarily driven by a decrease in local markets digital sales. We recognized approximately $46.8 million of revenue from our cable television segment during the three months ended September 30, 2023, compared to approximately $50.6 million for the three months ended September 30, 2022, a decrease of approximately $3.8 million. The decrease was primarily driven by a decrease in advertising sales and the consistent churn in subscribers.

The following chart indicates the sources of our net revenue for the three and nine months ended September 30, 2023:

		Three Months Ended September 30,
		2023			2022			$ Change				% Change
		(Unaudited)
		(in thousands)
					(As Restated)
Net Revenue:
Radio Advertising		$	46,651		$	45,081		$	1,570			3.48	%
Political Advertising			1,101			2,766			(1,665)			-60.20	%
Digital Advertising			20,269			20,063			206			1.03	%
Cable Television Advertising			25,218			26,801			(1,583)			-5.91	%
Cable Television Affiliate Fees			21,569			23,770			(2,201)			-9.26	%
Event Revenues & Other			3,017			2,769			248			8.96	%
Net Revenue (as reported)		$	117,825		$	121,250		$	(3,425)			-2.8 %
		Nine Months Ended September 30,
		2023			2022			$ Change				% Change
		(Unaudited)
		(in thousands)
					(As Restated)
Net Revenue:
Radio Advertising		$	134,549		$	128,726		$	5,823			4.52	%
Political Advertising			1,933			5,137			(3,204)			-62.37	%
Digital Advertising			54,027			53,427			600			1.12	%
Cable Television Advertising			81,286			86,336			(5,050)			-5.85	%
Cable Television Affiliate Fees			67,589			73,686			(6,097)			-8.27	%
Event Revenues & Other			17,962			4,726			13,236			280.07	%
Net Revenue		$	357,346		$	352,038		$	5,308			1.5 %

 

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $84.5 million for the quarter ended September 30, 2023, up 5.3% from the approximately $80.2 million incurred for the comparable period in 2022. The overall operating expense increase was driven by higher programming and technical expenses and higher corporate selling, general and administrative expenses offset by slightly lower selling, general and administrative expenses. The increase in programming and technical expenses was due to higher expenses across all segments. Programming and technical expenses in our cable television segment for the three months ended September 30, 2023 increased approximately $1.9 million compared to the three months ended September 30, 2022. The increase was primarily driven by higher content amortization expense which increased approximately $1.7 million for the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Total expenses in our radio broadcasting segment for the three months ended September 30, 2023 increased approximately $3.9 million, compared to the three months ended September 30, 2022. This increase was primarily driven by the Emmis transaction of approximately $2.0 million, the CMG acquisition of approximately $2.2 million offset by reduced costs in events, and sales and marketing costs. Corporate selling, general and administrative expenses were approximately $10.4 million for the three months ended September 30, 2023 compared to $9.8 million for the three months ended September 30, 2022, an increase of approximately $0.6 million. The increase is primarily due to higher third-party consulting and audit expenses. 

Depreciation and amortization expense was approximately $1.8 million for the three months ended September 30, 2023 compared to approximately $2.5 million for the three months ended September 30, 2022, a decrease of approximately $0.7 million due to capitalized assets becoming fully depreciated.

Impairment of goodwill, intangible assets and long-lived assets was approximately $85.4 million during the three months ended September 30, 2023 compared to approximately $15.5 million for the three months ended September 30, 2022, a decrease of approximately $70.0 million. During the three months ended September 30, 2023, the Company recognized a non-cash impairment charge of approximately $85.4 million for its radio broadcasting licenses associated with 10 markets.

Interest income was approximately $2.3 million for the three months ended September 30, 2023 compared to approximately $0.4 million for the three months ended September 30, 2022. The increase was driven by higher cash balances in the three months ended September 30, 2023.

Interest expense was approximately $14.0 million for the three months ended September 30, 2023 compared to approximately $15.3 million for the three months ended September 30, 2022, a decrease of approximately $1.3 million. The decrease is due to lower overall debt balances outstanding. During the first quarter of 2023, the Company repurchased approximately $25.0 million of its 2028 Notes at an average price of approximately 89.1% of par. The Company paid interest expense of approximately $27.0 million and $29.9 million for the three months ended September 30, 2023 and 2022, respectively.

Other income, net, was approximately $0.1 million for the three months ended September 30, 2023 compared to approximately $2.0 million for the three months ended September 30, 2022. During the three months ended September 30, 2022, the Company recognized income related to its MGM investment.

For the three months ended September 30, 2023, we recorded a benefit from income taxes of approximately $16.8 million. This amount is based on the actual effective tax rate of 23.8%. This rate includes $0.3 million of discrete tax benefits primarily related to deferred rate changes. For the three months ended September 30, 2022, we recorded a provision for income taxes of approximately $3.2 million on pre-tax income from consolidated operations of approximately $7.0 million which results in an effective tax rate of 46.2%. This rate includes $0.1 million of discrete tax benefits primarily related to statutory state tax rate changes. The Company paid income taxes of approximately $1.6 million and $247,000 for the three months ended September 30, 2023 and 2022, respectively.

Other pertinent financial information includes capital expenditures of approximately $2.5 million and $1.4 million for the quarter ended September 30, 2023 and 2022, respectively.

During the quarter ended September 30, 2023, the Company did not repurchase any shares of Class A common stock and repurchased 38,371 shares of Class D common stock in the amount of $195,000. During the quarter ended September 30, 2022, the Company did not repurchase any shares of Class A common stock and repurchased 426,675 shares of Class D common stock in the amount of approximately $1.8 million.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three and nine months ended September 30, 2023 are included.

						Three Months Ended September 30, 2023
						(in thousands, unaudited)
																All Other -
								Radio		Reach				Cable		Corporate/
						Consolidated		Broadcasting		Media		Digital		Television		Eliminations
	STATEMENT OF OPERATIONS:
		NET REVENUE			$	117,825	$	40,152	$	11,157	$	20,356	$	46,787	$	(627)
		OPERATING EXPENSES:
		Programming and technical				33,903		11,715		3,963		3,384		15,204		(363)
		Selling, general and administrative				40,142		19,829		3,145		9,623		7,970		(425)
		Corporate selling, general and administrative				10,418		-		673		2		1,374		8,369
		Stock-based compensation				2,218		157		184		54		15		1,808
		Depreciation and amortization				1,808		925		41		376		110		356
		Impairment of long-lived assets				85,448		85,448		-		-		-		-
		Total operating expenses				173,937		118,074		8,006		13,439		24,673		9,745
		Operating (loss) income				(56,112)		(77,922)		3,151		6,917		22,114		(10,372)
		INTEREST INCOME				2,256		-		-		-		-		2,256
		INTEREST EXPENSE				13,983		56		-		-		-		13,927
		GAIN ON RETIREMENT OF DEBT				-		-		-		-		-		-
		OTHER (LOSS) INCOME, net				75		60		-		-		-		15
			(Loss) income from consolidated operations before (benefit from) provision        for income taxes			(67,764)		(77,918)		3,151		6,917		22,114		(22,028)
		(BENEFIT FROM) PROVISION FOR INCOME TAXES				(16,778)		(17,617)		310		-		2,487		(1,958)
			Net (loss) income from consolidated operations			(50,986)		(60,301)		2,841		6,917		19,627		(20,070)
		LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax				(2,728)		-		-		-		-		(2,728)
		NET (LOSS) INCOME				(53,714)		(60,301)		2,841		6,917		19,627		(22,798)
		NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS				697		-		-		-		-		697
		NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS			$	(54,411)	$	(60,301)	$	2,841	$	6,917	$	19,627	$	(23,495)
		Adjusted EBITDA2			$	34,142	$	8,583	$	3,420	$	7,356	$	22,239	$	(7,456)

 

						Three Months Ended September 30, 2022
						(in thousands, unaudited)
																All Other -
								Radio		Reach				Cable		Corporate/
						Consolidated		Broadcasting		Media		Digital		Television		Eliminations
	STATEMENT OF OPERATIONS:
		NET REVENUE			$	121,250	$	40,407	$	10,071	$	20,986	$	50,631	$	(845)
		OPERATING EXPENSES:
		Programming and technical				29,490		9,801		3,701		3,028		13,343		(383)
		Selling, general and administrative				40,918		17,842		2,036		10,379		11,123		(462)
		Corporate selling, general and administrative				9,777		-		671		-		1,202		7,904
		Stock-based compensation				5,114		4		579		1		309		4,221
		Depreciation and amortization				2,505		837		50		329		955		334
		Impairment of long-lived assets				15,450		15,450		-		-		-		-
		Total operating expenses				103,254		43,934		7,037		13,737		26,932		11,614
		Operating income (loss)				17,996		(3,527)		3,034		7,249		23,699		(12,459)
		INTEREST INCOME				415		-		-		-		-		415
		INTEREST EXPENSE				15,310		50		-		79		1,919		13,262
		GAIN ON RETIREMENT OF DEBT				1,837		-		-		-		-		1,837
		OTHER INCOME (LOSS), net				2,021		(120)		-		-		-		2,141
			Income (loss) from consolidated operations before provision (benefit        from) for income taxes			6,959		(3,697)		3,034		7,170		21,780		(21,328)
		PROVISION (BENEFIT FROM)  FOR INCOME TAXES				3,213		3,204		1,673		-		8,379		(10,043)
			Net income (loss) from consolidated operations			3,746		(6,901)		1,361		7,170		13,401		(11,285)
		LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax				-		-		-		-		-		-
		NET INCOME (LOSS)				3,746		(6,901)		1,361		7,170		13,401		(11,285)
		NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS				277		-		-		-		-		277
		NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS			$	3,469	$	(6,901)	$	1,361	$	7,170	$	13,401	$	(11,562)
		Adjusted EBITDA2			$	44,341	$	12,852	$	3,662	$	7,580	$	24,964	$	(4,717)

 

						Nine Months Ended September 30, 2023
						(in thousands, unaudited)
																All Other -
								Radio		Reach				Cable		Corporate/
						Consolidated		Broadcasting		Media		Digital		Television		Eliminations
	STATEMENT OF OPERATIONS:
		NET REVENUE			$	357,346	$	114,528	$	42,125	$	54,335	$	148,895	$	(2,537)
		OPERATING EXPENSES:
		Programming and technical				100,304		32,570		11,969		10,331		46,562		(1,128)
		Selling, general and administrative				126,634		54,557		16,721		26,763		30,390		(1,797)
		Corporate selling, general and administrative				30,333		-		2,010		3		5,021		23,299
		Stock-based compensation				7,816		446		626		134		574		6,036
		Depreciation and amortization				6,291		2,730		120		1,077		1,327		1,037
		Impairment of long-lived assets				124,304		124,304		-		-		-		-
		Total operating expenses				395,682		214,607		31,446		38,308		83,874		27,447
		Operating (loss) income				(38,336)		(100,079)		10,679		16,027		65,021		(29,984)
		INTEREST INCOME				4,488		-		-		-		-		4,488
		INTEREST EXPENSE				42,023		167		-		-		2,559		39,297
		GAIN ON RETIREMENT OF DEBT				(2,356)		-		-		-		-		(2,356)
		OTHER INCOME (LOSS), net				96,535		(7)		-		-		-		96,542
			Income (loss) before income from consolidated operations before provision        for (benefit from) income taxes			23,020		(100,253)		10,679		16,027		62,462		34,105
		PROVISION FOR (BENEFIT FROM) INCOME TAXES				5,259		(24,535)		2,342		-		13,705		13,747
			Net (loss) income from consolidated operations			17,761		(75,718)		8,337		16,027		48,757		20,358
		LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax				(2,728)		-		-		-		-		(2,728)
		NET INCOME (LOSS)				15,033		(75,718)		8,337		16,027		48,757		17,630
		NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS				2,000		-		-		-		-		2,000
		NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS			$	13,033	$	(75,718)	$	8,337	$	16,027	$	48,757	$	15,630
		Adjusted EBITDA2			$	101,932	$	27,601	$	11,479	$	17,275	$	66,922	$	(21,344)

 

						Nine Months Ended September 30, 2022
						(in thousands, unaudited)
																All Other -
								Radio		Reach				Cable		Corporate/
						Consolidated		Broadcasting		Media		Digital		Television		Eliminations
	STATEMENT OF OPERATIONS:
		NET REVENUE			$	352,038	$	109,091	$	31,194	$	54,353	$	160,144	$	(2,744)
		OPERATING EXPENSES:
		Programming and technical				86,359		27,797		10,841		9,605		39,263		(1,147)
		Selling, general and administrative				111,321		49,002		6,058		24,876		32,982		(1,597)
		Corporate selling, general and administrative				31,206		-		1,985		7		4,425		24,789
		Stock-based compensation				5,574		4		578		1		634		4,357
		Depreciation and amortization				7,391		2,477		143		995		2,853		923
		Impairment of long-lived assets				30,355		30,355		-		-		-		-
		Total operating expenses				272,206		109,635		19,605		35,484		80,157		27,325
		Operating income (loss)				79,832		(544)		11,589		18,869		79,987		(30,069)
		INTEREST INCOME				474		-		-		-		-		474
		INTEREST EXPENSE				47,123		149		-		238		5,757		40,979
		GAIN ON RETIREMENT OF DEBT				3,692		-		-		-		-		3,692
		OTHER INCOME (LOSS), net				13,732		(128)		-		-		-		13,860
			Income (loss) before income from consolidated operations before        provision for (benefit from) income taxes			50,607		(821)		11,589		18,631		74,230		(53,022)
		PROVISION FOR (BENEFIT FROM) INCOME TAXES				12,803		(1,565)		3,973		-		22,480		(12,085)
			Net income (loss) from consolidated operations			37,804		744		7,616		18,631		51,750		(40,937)
		LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax				-		-		-		-		-		-
		NET INCOME (LOSS)				37,804		744		7,616		18,631		51,750		(40,937)
		NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS				1,553		-		-		-		-		1,553
		NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS			$	36,251	$	744	$	7,616	$	18,631	$	51,750	$	(42,490)
		Adjusted EBITDA2			$	133,853	$	32,420	$	12,310	$	19,871	$	83,475	$	(14,223)

Urban One, Inc. will hold a conference call to discuss its results for the third fiscal quarters of 2023. The conference call is scheduled for Thursday, January 11, 2024 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-844-291-4185; international callers may dial direct (+1) 409-207-6997. The Access Code is 2080185.

A replay of the conference call will be available from 1:00 p.m. EST January 11, 2024 until 12:00 a.m. EST January 18, 2024. Callers may access the replay by calling 1-866-207-1041; international callers may dial direct (+1) 402-970-0847. The replay Access Code is 2318685.

Access to live audio and a replay of the conference call will also be available on Urban One's corporate website at www.urban1.com. The replay will be made available on the website for seven days after the call.

Urban One Inc. (urban1.com), together with its subsidiaries, is the largest diversified media company that primarily targets Black Americans and urban consumers in the United States. The Company owns TV One, LLC (tvone.tv), a television network serving more than 59 million households, offering a broad range of original programming, classic series and movies designed to entertain, inform, and inspire a diverse audience of adult Black viewers. As of January 05, 2024, we owned and/or operated 72 independently formatted, revenue producing broadcast stations (including 57 FM or AM stations, 13 HD stations, and the 2 low power television stations) branded under the tradename "Radio One" in 13 urban markets in the United States. Through its controlling interest in Reach Media, Inc. (blackamericaweb.com), the Company also operates syndicated programming including the Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. In addition to its radio and television broadcast assets, Urban One owns iOne Digital (ionedigital.com), our wholly owned digital platform serving the African American community through social content, news, information, and entertainment websites, including its Cassius, Bossip, HipHopWired and MadameNoire digital platforms and brands. Through our national multi-media operations, we provide advertisers with a unique and powerful delivery mechanism to the African American and urban audiences.

Notes:

¹  "Broadcast and digital operating income" consists of net (loss) income before depreciation and amortization, corporate selling, general and administrative expenses, stock-based compensation, income taxes, noncontrolling interest in income (loss) of subsidiaries, interest expense, impairment of long-lived assets, other (income) expense, loss (gain) on retirement of debt, gain on sale-leaseback and interest income. Broadcast and digital operating income is not a measure of financial performance under generally accepted accounting principles. Nevertheless, broadcast and digital operating income is a significant measure used by our management to evaluate the operating performance of our core operating segments because broadcast and digital operating income provides helpful information about our results of operations apart from expenses associated with our fixed assets and long-lived intangible assets, income taxes, investments, debt financings and retirements, overhead, stock-based compensation, impairment charges, and asset sales. Our measure of broadcast and digital operating income is similar to industry use of station operating income; however, it reflects our more diverse business and therefore is not completely analogous to "station operating income" or other similarly titled measures used by other companies. Broadcast and digital operating income does not purport to represent operating income or loss, or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as an alternative to those measurements as an indicator of our performance. A reconciliation of net income (loss) to broadcast and digital operating income has been provided in this release.

²  "Adjusted EBITDA" consists of net income (loss) plus (1) depreciation, amortization, income taxes, interest expense, noncontrolling interest in (loss) income of subsidiaries, impairment of long-lived assets, stock-based compensation, (gain) loss on retirement of debt, gain on sale-leaseback, Employment Agreement and incentive plan award expenses and other compensation, contingent consideration from acquisition, corporate development costs, severance-related costs, cost investment income, less (2) other income and interest income. Net income before interest income, interest expense, income taxes, depreciation and amortization is commonly referred to in our business as "EBITDA." Adjusted EBITDA and EBITDA are not measures of financial performance under generally accepted accounting principles. However, we believe Adjusted EBITDA is often a useful measure of a company's operating performance and is a significant measure used by our management to evaluate the operating performance of our business because Adjusted EBITDA excludes charges for depreciation, amortization and interest expense that have resulted from our acquisitions and debt financing, our taxes, impairment charges, and gain on retirements of debt. Accordingly, we believe that Adjusted EBITDA provides useful information about the operating performance of our business, apart from the expenses associated with our fixed assets and long-lived intangible assets or capital structure. EBITDA is frequently used as one of the measures for comparing businesses in the broadcasting industry, although our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies, including, but not limited to the fact that our definition includes the results of all four segments (radio broadcasting, Reach Media, digital and cable television). Adjusted EBITDA and EBITDA do not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as alternatives to those measurements as an indicator of our performance. A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA has been provided in this release.

³  For the three months ended September 30, 2023 and 2022, Urban One had 47,629,163 and 46,625,484 shares of common stock outstanding on a weighted average basis (basic), respectively. For the nine months ended September 30, 2023 and 2022, Urban One had 47,514,722 and 49,504,238 shares of common stock outstanding on a weighted average basis (basic), respectively.

⁴  For the three months ended September 31, 2023 and 2022, Urban One had 47,629,163 and 50.206.608 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the nine months ended September 30, 2023 and 2022, Urban One had 50,373,714 and 53,171,793 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively.

 

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SOURCE Urban One, Inc.

FAQ

What was Urban One, Inc.'s net revenue for the quarter ended September 30, 2023?

Urban One, Inc.'s net revenue for the quarter ended September 30, 2023 was $117.8 million, a decrease of 2.8% from the same period in 2022.

What was Urban One, Inc.'s operating loss for the quarter ended September 30, 2023?

Urban One, Inc.'s operating loss was approximately $56.1 million for the quarter ended September 30, 2023.

What was Urban One, Inc.'s Adjusted EBITDA for the quarter ended September 30, 2023?

Urban One, Inc.'s Adjusted EBITDA was approximately $34.1 million for the quarter ended September 30, 2023, compared to approximately $44.3 million for the same period in 2022.

What is Urban One, Inc.'s CEO's expectation for Q4 radio markets?

The CEO expects Q4 radio markets to be down approximately 14%.

What is Urban One, Inc.'s plan to finish the year in terms of Adjusted EBITDA?

The company plans to finish the year in line with prior Adjusted EBITDA guidance of $125-128 million.