URBAN ONE, INC. REPORTS YEAR END 2023 AND FIRST QUARTER 2024 RESULTS
Urban One (NASDAQ: UONE) reported a net revenue of $477.7 million for FY 2023, a decline of 1.4% compared to 2022. The company experienced an operating loss of $31.6 million, a significant drop from the $91.1 million operating income in 2022. Broadcast and digital operating income decreased by 16.5% to $168.4 million. Net income fell to $2.1 million, or $0.04 per share, down from $34.3 million or $0.70 per share in 2022. Adjusted EBITDA for FY 2023 was $128.4 million, down from $165.2 million in 2022.
For Q1 2024, net revenue was $104.4 million, a 5.0% decrease from Q1 2023. Operating income rose to $12.9 million from $8.1 million. Net income improved to $7.5 million, or $0.15 per share, compared to a $2.9 million loss in Q1 2023. Adjusted EBITDA was $21.5 million, down from $30.3 million in Q1 2023.
CEO Alfred C. Liggins III noted a drop in radio division revenue due to reduced political advertising and highlighted industry-wide concerns about cable TV subscriber churn. Despite these challenges, the company remains optimistic about future political advertising revenue.
- Operating income for Q1 2024 increased to $12.9 million from $8.1 million in Q1 2023.
- Net income for Q1 2024 was $7.5 million, or $0.15 per share, compared to a $2.9 million loss in Q1 2023.
- Urban One repurchased $75.0 million of its 2028 notes at 88.3%.
- Adjusted EBITDA for FY 2023 was $128.4 million, just above the high-end of previous guidance.
- Net revenue for FY 2023 was $477.7 million, a decrease of 1.4% from 2022.
- The company reported an operating loss of $31.6 million for FY 2023, compared to an operating income of $91.1 million in 2022.
- Broadcast and digital operating income fell by 16.5% to $168.4 million in FY 2023.
- Net income for FY 2023 dropped to $2.1 million, or $0.04 per share, down from $34.3 million, or $0.70 per share in 2022.
- Adjusted EBITDA for FY 2023 decreased to $128.4 million from $165.2 million in 2022.
- Q4 2023 net revenue was $120.3 million, a 9.2% decline from Q4 2022.
- Broadcast and digital operating income for Q1 2024 declined by 18.5% to $32.0 million.
- Net digital segment revenue decreased by 7.3% in Q1 2024.
Insights
Urban One, Inc.’s financial performance for fiscal 2023 and Q1 2024 reveals some significant trends that are important for investors to understand. The company's net revenue for the year ended December 31, 2023, stood at approximately
The decrease in net income and adjusted EBITDA by
On a positive note, the company reported a significant reduction in debt, repurchasing
Overall, the financials suggest that Urban One, Inc. faces several headwinds, including decreased political advertising and cable television subscriber churn, which are industry-wide issues. Investors should monitor how the company plans to address these challenges and whether it can leverage political advertising revenue in the upcoming quarters to stabilize financials.
The media industry has been facing substantial transformations, particularly in the shift from traditional to digital platforms. For Urban One, Inc., the specific mention of reduced political advertising and the churn in cable television subscribers as major concerns highlights the broader industry trends. The decline in net revenue and operating income can be partially attributed to these shifts.
The company’s digital segment revenues experienced a
Urban One's diversified media portfolio, including radio, cable TV and digital segments, might be a strength in navigating these changes. However, the company needs to bolster its digital strategy to capture growth opportunities in areas like VOD, streaming audio and podcasts, which showed growth potential. Investors should pay attention to the company's strategic initiatives to enhance its digital footprint and address the soft demand in some digital products.
Urban One, Inc.’s significant changes in operational performance, particularly the operating loss reported in 2023 compared to a substantial operating income in 2022, necessitates close scrutiny of the management’s decisions and governance practices. The increase in corporate selling, general and administrative expenses by
Moreover, the impairment of goodwill and intangible assets amounting to
For investors, it’s important to understand how the company plans to address these governance issues. Transparency in financial reporting and a clear strategy to manage costs while enhancing revenue streams will be key areas to monitor. The repurchase of debt is a positive move by the company, showcasing a proactive approach in reducing liabilities, but this should be balanced against the need for sustained operational improvements.
For the three months ended December 31, 2023 net revenue was approximately
For the three months ended March 31, 2024 net revenue was approximately
Alfred C. Liggins, III, Urban One's CEO and President stated, "our Adjusted EBITDA for FY23 came in just above the high-end of our previous guidance at
RESULTS OF OPERATIONS | |||||||||
Three Months Ended December 31, | Years Ended December 31, | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||
STATEMENT OF OPERATIONS | (in thousands, except share data) | (in thousands, except share data) | |||||||
NET REVENUE | $ 120,344 | $ 132,566 | $ 477,690 | $ 484,604 | |||||
OPERATING EXPENSES | |||||||||
Programming and technical, excluding stock-based compensation | 36,580 | 36,270 | 136,884 | 122,629 | |||||
Selling, general and administrative, excluding stock-based compensation | 45,807 | 49,082 | 172,440 | 160,403 | |||||
Corporate selling, general and administrative, excluding stock-based compensation | 23,251 | 18,648 | 53,583 | 49,854 | |||||
Stock-based compensation | 2,160 | 4,338 | 9,975 | 9,912 | |||||
Depreciation and amortization | 810 | 2,643 | 7,101 | 10,034 | |||||
Impairment of goodwill, intangible assets, and long-lived assets | 4,972 | 10,328 | 129,278 | 40,683 | |||||
Total operating expenses | 113,580 | 121,309 | 509,261 | 393,515 | |||||
Operating income (loss) | 6,764 | 11,257 | (31,571) | 91,089 | |||||
INTEREST INCOME | 2,479 | 465 | 6,967 | 939 | |||||
INTEREST EXPENSE | 14,173 | 14,628 | 56,196 | 61,751 | |||||
GAIN ON RETIREMENT OF DEBT | - | 3,026 | 2,356 | 6,718 | |||||
Other (loss) income, net | (451) | 2,351 | 96,084 | 16,083 | |||||
(Loss) income before provision for income taxes and noncontrolling interest in income of subsidiaries | (5,381) | 2,471 | 17,640 | 53,078 | |||||
PROVISION FOR INCOME TAXES | 2,686 | 3,615 | 7,944 | 16,418 | |||||
Net (loss) income from consolidated operations | (8,067) | (1,144) | 9,696 | 36,660 | |||||
Loss from unconsolidated joint venture | (2,403) | - | (5,131) | - | |||||
NET (LOSS) INCOME | (10,470) | (1,144) | 4,565 | 36,660 | |||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 515 | 764 | 2,515 | 2,317 | |||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (10,985) | $ (1,908) | $ 2,050 | $ 34,343 | |||||
Weighted average shares outstanding - basic3 | 47,804,932 | 48,928,063 | 47,645,678 | 48,928,063 | |||||
Weighted average shares outstanding - diluted4 | 47,804,932 | 52,174,337 | 50,243,810 | 52,174,337 |
RESULTS OF OPERATIONS | ||||
Three Months Ended March 31, | ||||
2024 | 2023 | |||
STATEMENT OF OPERATIONS | (unaudited) | |||
(in thousands, except share data) | ||||
NET REVENUE | $ 104,410 | $ 109,869 | ||
OPERATING EXPENSES | ||||
Programming and technical, excluding stock-based compensation | 32,659 | 33,854 | ||
Selling, general and administrative, excluding stock-based compensation | 39,737 | 36,715 | ||
Corporate selling, general and administrative, excluding stock-based compensation | 15,892 | 8,530 | ||
Stock-based compensation | 1,384 | 3,278 | ||
Depreciation and amortization | 1,850 | 2,597 | ||
Impairment of goodwill, intangible assets, and long-lived assets | - | 16,775 | ||
Total operating expenses | 91,522 | 101,749 | ||
Operating income | 12,888 | 8,120 | ||
INTEREST INCOME | 1,998 | 333 | ||
INTEREST EXPENSE | 12,998 | 14,068 | ||
GAIN ON RETIREMENT OF DEBT | 7,874 | 2,356 | ||
Other income (expense), net | 886 | (312) | ||
Income (loss) from consolidated operations before provision for (benefit from) income taxes | 10,648 | (3,571) | ||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 2,502 | (1,160) | ||
Net income (loss) from consolidated operations | 8,146 | (2,411) | ||
Loss from unconsolidated joint venture | (411) | - | ||
NET INCOME (LOSS) | 7,735 | (2,411) | ||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 242 | 511 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 7,493 | $ (2,922) | ||
Weighted average shares outstanding - basic3 | 48,385,386 | 47,420,832 | ||
Weighted average shares outstanding - diluted4 | 49,921,803 | 47,420,832 |
Three Months Ended December 31, | Years Ended December 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
PER SHARE DATA - basic and diluted: | |||||||
(in thousands, except per share data) | (in thousands, except per share data) | ||||||
Net (loss) income attributable to common stockholders (basic) | (0.23) | (0.04) | 0.04 | 0.70 | |||
Net (loss) income attributable to common stockholders (diluted) | (0.23) | (0.04) | 0.04 | 0.66 | |||
SELECTED OTHER DATA | |||||||
Broadcast and digital operating income 1 | $ 37,957 | $ 47,214 | $ 168,366 | $ 201,572 | |||
Broadcast and digital operating income reconciliation: | |||||||
Net (loss) income attributable to common stockholders | $ (10,985) | $ (1,908) | $ 2,050 | $ 34,343 | |||
Add back/(deduct) certain non-broadcast and digital operating income items included in net (loss) income: | |||||||
Interest income | (2,479) | (465) | (6,967) | (939) | |||
Interest expense | 14,173 | 14,628 | 56,196 | 61,751 | |||
Provision for income taxes | 2,686 | 3,615 | 7,944 | 16,418 | |||
Corporate selling, general and administrative expenses | 23,251 | 18,648 | 53,583 | 49,854 | |||
Stock-based compensation | 2,160 | 4,338 | 9,975 | 9,912 | |||
Gain on retirement of debt | - | (3,026) | (2,356) | (6,718) | |||
Other (loss) income, net | 451 | (2,351) | (96,084) | (16,083) | |||
Loss from unconsolidated joint venture | 2,403 | - | 5,131 | - | |||
Depreciation and amortization | 810 | 2,643 | 7,101 | 10,034 | |||
Net income attributable to noncontrolling interests | 515 | 764 | 2,515 | 2,317 | |||
Impairment of goodwill, intangible assets, and long-lived assets | 4,972 | 10,328 | 129,278 | 40,683 | |||
Broadcast and digital operating income | $ 37,957 | $ 47,214 | $ 168,366 | $ 201,572 | |||
Adjusted EBITDA2 | $ 26,447 | $ 31,328 | $ 128,379 | $ 165,180 | |||
Adjusted EBITDA reconciliation: | |||||||
Net (loss) income attributable to common stockholders | $ (10,985) | $ (1,908) | $ 2,050 | $ 34,343 | |||
Interest income | (2,479) | (465) | (6,967) | (939) | |||
Interest expense | 14,173 | 14,628 | 56,196 | 61,751 | |||
Provision for income taxes | 2,686 | 3,615 | 7,944 | 16,418 | |||
Depreciation and amortization | 810 | 2,643 | 7,101 | 10,034 | |||
EBITDA | $ 4,205 | $ 18,513 | $ 66,324 | $ 121,607 | |||
Stock-based compensation | 2,160 | 4,338 | 9,975 | 9,912 | |||
Gain on retirement of debt | - | (3,026) | (2,356) | (6,718) | |||
Other (loss) income, net | 451 | (2,351) | (96,084) | (16,083) | |||
Loss from unconsolidated joint venture | 2,403 | - | 5,131 | - | |||
Net income attributable to noncontrolling interests | 515 | 764 | 2,515 | 2,317 | |||
Corporate development costs | 3,880 | 350 | 8,196 | 2,221 | |||
Employment Agreement Award and other compensation | 2,832 | (609) | 169 | 1,587 | |||
Severance-related costs | 352 | 462 | 669 | 850 | |||
Investment income (expense) from MGM National Harbor | - | 2,559 | (115) | 8,804 | |||
Impairment of goodwill, intangible assets, and long-lived assets | 4,972 | 10,328 | 129,278 | 40,683 | |||
Other nonrecurring expenses | 4,677 | - | 4,677 | - | |||
Adjusted EBITDA | $ 26,447 | $ 31,328 | $ 128,379 | $ 165,180 |
Three Months Ended March 31, | |||
2024 | 2023 | ||
PER SHARE DATA - basic and diluted: | (unaudited) | (unaudited) | |
(in thousands, except per share data) | |||
Net income (loss) attributable to common stockholders (basic) | 0.15 | (0.06) | |
Net income (loss) attributable to common stockholders (diluted) | 0.15 | (0.06) | |
SELECTED OTHER DATA | |||
Broadcast and digital operating income 1 | $ 32,014 | $ 39,300 | |
Broadcast and digital operating income reconciliation: | |||
Net income (loss) attributable to common stockholders | $ 7,493 | $ (2,922) | |
Add back/(deduct) certain non-broadcast and digital operating income items included in net (loss) income: | |||
Interest income | (1,998) | (333) | |
Interest expense | 12,998 | 14,068 | |
Provision for (benefit from) income taxes | 2,502 | (1,160) | |
Corporate selling, general and administrative expenses | 15,892 | 8,530 | |
Stock-based compensation | 1,384 | 3,278 | |
Gain on retirement of debt | (7,874) | (2,356) | |
Other (income) expense, net | (886) | 312 | |
Loss from unconsolidated joint venture | 411 | - | |
Depreciation and amortization | 1,850 | 2,597 | |
Net income attributable to noncontrolling interests | 242 | 511 | |
Impairment of goodwill, intangible assets, and long-lived assets | - | 16,775 | |
Broadcast and digital operating income | $ 32,014 | $ 39,300 | |
Adjusted EBITDA2 | $ 21,545 | $ 30,285 | |
Adjusted EBITDA reconciliation: | |||
Net income (loss) attributable to common stockholders | $ 7,493 | $ (2,922) | |
Interest income | (1,998) | (333) | |
Interest expense | 12,998 | 14,068 | |
Provision for (benefit from) income taxes | 2,502 | (1,160) | |
Depreciation and amortization | 1,850 | 2,597 | |
EBITDA | $ 22,845 | $ 12,250 | |
Stock-based compensation | 1,384 | 3,278 | |
Gain on retirement of debt | (7,874) | (2,356) | |
Other (income) expense, net | (886) | 312 | |
Loss from unconsolidated joint venture | 411 | - | |
Net income attributable to noncontrolling interests | 242 | 511 | |
Corporate costs | 5,359 | (376) | |
Employment Agreement Award and other compensation | - | (144) | |
Severance-related costs | 64 | 150 | |
Impairment of goodwill, intangible assets, and long-lived assets | - | 16,775 | |
Investment expense from MGM National Harbor | - | (115) | |
Adjusted EBITDA | $ 21,545 | $ 30,285 |
December 31, 2023 | December 31, 2022 | |||
(in thousands) | ||||
SELECTED BALANCE SHEET DATA: | ||||
Cash and cash equivalents and restricted cash | 233,570 | 101,879 | ||
Intangible assets, net | 645,979 | 765,191 | ||
Available-for-sale securities - at fair value | - | 136,826 | ||
Total assets | 1,211,173 | 1,344,646 | ||
Total debt (including current portion, net of issuance costs) | 716,246 | 739,000 | ||
Total liabilities | 920,588 | 981,973 | ||
Total stockholders' equity | 274,065 | 330,750 | ||
Redeemable noncontrolling interests | 16,520 | 31,923 | ||
December 31, 2023 | Applicable Interest Rate | |||
(in thousands) | ||||
SELECTED LEVERAGE DATA: | ||||
$ 716,246 | 7.375 % |
March 31, 2024 | December 31, 2023 | |||
(unaudited) | ||||
(in thousands) | ||||
SELECTED BALANCE SHEET DATA: | ||||
Cash and cash equivalents and restricted cash | 155,746 | 233,570 | ||
Intangible assets, net | 644,688 | 645,979 | ||
Total assets | 1,126,023 | 1,211,173 | ||
Total debt (including current portion, net of issuance costs) | 642,579 | 716,246 | ||
Total liabilities | 832,457 | 920,588 | ||
Total stockholders' equity | 285,202 | 274,065 | ||
Redeemable noncontrolling interests | 8,364 | 16,520 | ||
March 31, 2024 | Applicable Interest Rate | |||
(in thousands) | ||||
SELECTED LEVERAGE DATA: | ||||
$ 642,579 | 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 year ended December 31, 2023, we recognized approximately
During the three months ended March 31, 2024, we recognized approximately
The following charts indicates the sources of our net revenue for the year end December 31, 2023 and three months ended March 31, 2024:
Three Months Ended December 31, | |||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||
(Unaudited) | |||||||||||||
(in thousands) | |||||||||||||
(As Restated) | |||||||||||||
Net Revenue: | |||||||||||||
Radio Advertising | $ | 47,814 | $ | 48,542 | $ | (728) | -1.5 | % | |||||
Political Advertising | 1,948 | 8,089 | (6,141) | -75.9 | % | ||||||||
Digital Advertising | 20,838 | 23,301 | (2,463) | -10.6 | % | ||||||||
Cable Television Advertising | 27,021 | 26,522 | 499 | 1.9 | % | ||||||||
Cable Television Affiliate Fees | 20,158 | 23,278 | (3,120) | -13.4 | % | ||||||||
Event Revenues & Other | 2,564 | 2,834 | (270) | -9.5 | % | ||||||||
Net Revenue (as reported) | $ | 120,344 | $ | 132,566 | $ | (12,222) | -9.2 % | ||||||
Years Ended December 31, | |||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||
(in thousands) | |||||||||||||
Net Revenue: | |||||||||||||
Radio Advertising | $ | 182,362 | $ | 177,268 | $ | 5,094 | 2.9 | % | |||||
Political Advertising | 3,881 | 13,226 | (9,345) | -70.7 | % | ||||||||
Digital Advertising | 74,866 | 76,730 | (1,864) | -2.4 | % | ||||||||
Cable Television Advertising | 108,307 | 112,857 | (4,550) | -4.0 | % | ||||||||
Cable Television Affiliate Fees | 87,747 | 96,963 | (9,216) | -9.5 | % | ||||||||
Event Revenues & Other | 20,527 | 7,560 | 12,967 | 171.5 | % | ||||||||
Net Revenue (as reported) | $ | 477,690 | $ | 484,604 | $ | (6,914) | -1.4 % |
Three Months Ended March 31, | |||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||
(Unaudited) | |||||||||||||
(in thousands) | |||||||||||||
(As Restated) | |||||||||||||
Net Revenue: | |||||||||||||
Radio Advertising | $ | 41,341 | $ | 43,108 | $ | (1,767) | -4.1 | % | |||||
Political Advertising | 1,237 | 296 | 941 | 317.9 | % | ||||||||
Digital Advertising | 13,946 | 15,024 | (1,078) | -7.2 | % | ||||||||
Cable Television Advertising | 25,365 | 25,822 | (457) | -1.8 | % | ||||||||
Cable Television Affiliate Fees | 20,787 | 23,837 | (3,050) | -12.8 | % | ||||||||
Event Revenues & Other | 1,734 | 1,782 | (48) | -2.7 | % | ||||||||
Net Revenue (as reported) | $ | 104,410 | $ | 109,869 | $ | (5,459) | -5.0 % |
Operating expenses, excluding depreciation and amortization, stock-based compensation, and impairment of long-lived assets, increased to approximately
Operating expenses, excluding depreciation and amortization, stock-based compensation, and impairment of long-lived assets, increased to approximately
Depreciation and amortization expense was approximately
Depreciation and amortization expense was approximately
Impairment of goodwill, intangible assets and long-lived assets was approximately
There was no impairment of goodwill, intangible assets and long-lived assets during the three months ended March 31, 2024 compared to
Interest income was approximately
Interest income was approximately
Interest expense decreased to approximately
Interest expense was approximately
Other income, net increased
Other income, net, was approximately
For the year ended December 31, 2023, we recorded a provision for income taxes of approximately
For the three months ended March 31, 2024, we recorded a provision for income taxes of approximately
Other pertinent financial information includes capital expenditures of approximately
Other pertinent financial information includes capital expenditures of approximately
During the year ended December 31, 2023, the Company did not repurchase any shares of Class A common stock and repurchased 313,272 shares of Class D common stock in the amount of approximately
During the three months ended March 31, 2024, the Company did not repurchase any shares of Class A common stock and repurchased 396,052 shares of Class D common stock in the amount of approximately
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited statements of operations for the year end December 31, 2023 and the three months ended March 31, 2024 are included.
Three Months Ended December 31, 2023 | |||||||||||||||
(in thousands) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 120,344 | $ | 41,686 | $ | 10,763 | $ | 21,159 | $ | 47,312 | $ | (576) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 36,580 | 11,135 | 4,238 | 5,158 | 16,373 | (324) | |||||||||
Selling, general and administrative | 45,807 | 23,342 | 2,026 | 13,261 | 7,381 | (203) | |||||||||
Corporate selling, general and administrative | 23,251 | - | 1,185 | - | 2,906 | 19,160 | |||||||||
Stock-based compensation | 2,160 | 616 | (180) | 42 | 1 | 1,681 | |||||||||
Depreciation and amortization | 810 | 977 | 42 | 275 | 42 | (526) | |||||||||
Impairment of goodwill, intangible assets, and long-lived assets | 4,972 | 4,972 | - | - | - | - | |||||||||
Total operating expenses | 113,580 | 41,042 | 7,311 | 18,736 | 26,703 | 19,788 | |||||||||
Operating income (loss) | 6,764 | 644 | 3,452 | 2,423 | 20,609 | (20,364) | |||||||||
INTEREST INCOME | 2,479 | - | - | - | - | 2,479 | |||||||||
INTEREST EXPENSE | 14,173 | 56 | - | - | - | 14,117 | |||||||||
GAIN ON RETIREMENT OF DEBT | - | - | - | - | - | - | |||||||||
OTHER (LOSS) INCOME, net | (451) | 14 | - | - | - | (465) | |||||||||
(Loss) income before income from consolidated operations before provision for (benefit from) income taxes | (5,381) | 602 | 3,452 | 2,423 | 20,609 | (32,467) | |||||||||
PROVISION FOR INCOME TAXES | 2,686 | 2,598 | 1,207 | 654 | 7,560 | (9,333) | |||||||||
Net (loss) income from consolidated operations | (8,067) | (1,996) | 2,245 | 1,769 | 13,049 | (23,134) | |||||||||
LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax | (2,403) | - | - | - | - | (2,403) | |||||||||
NET (LOSS) INCOME | (10,470) | (1,996) | 2,245 | 1,769 | 13,049 | (25,537) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 515 | - | - | - | - | 515 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (10,985) | $ | (1,996) | $ | 2,245 | $ | 1,769 | $ | 13,049 | $ | (26,052) | |||
Adjusted EBITDA2 | $ | 26,447 | $ | 8,469 | $ | 3,417 | $ | 3,518 | $ | 21,842 | $ | (10,799) |
Three Months Ended December 31, 2022 | |||||||||||||||
(in thousands) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 132,566 | $ | 47,587 | $ | 11,923 | $ | 24,171 | $ | 49,727 | $ | (842) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 36,270 | 10,898 | 4,911 | 5,983 | 14,868 | (390) | |||||||||
Selling, general and administrative | 49,082 | 21,470 | 2,445 | 16,256 | 9,404 | (493) | |||||||||
Corporate selling, general and administrative | 18,648 | - | 1,419 | - | 3,637 | 13,592 | |||||||||
Stock-based compensation | 4,338 | 193 | 414 | 32 | 208 | 3,491 | |||||||||
Depreciation and amortization | 2,643 | 934 | 45 | 328 | 994 | 342 | |||||||||
Impairment of goodwill, intangible assets, and long-lived assets | 10,328 | 10,328 | - | - | - | - | |||||||||
Total operating expenses | 121,309 | 43,823 | 9,234 | 22,599 | 29,111 | 16,542 | |||||||||
Operating income (loss) | 11,257 | 3,764 | 2,689 | 1,572 | 20,616 | (17,384) | |||||||||
INTEREST INCOME | 465 | - | - | - | - | 465 | |||||||||
INTEREST EXPENSE | 14,628 | 50 | - | 76 | 1,919 | 12,583 | |||||||||
GAIN ON RETIREMENT OF DEBT | 3,026 | - | - | - | - | 3,026 | |||||||||
OTHER INCOME (LOSS), net | 2,351 | (489) | - | 266 | - | 2,574 | |||||||||
Income (loss) before income from consolidated operations before provision for (benefit from) income taxes | 2,471 | 3,225 | 2,689 | 1,762 | 18,697 | (23,902) | |||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 3,615 | 11,109 | (227) | 1,448 | 489 | (9,204) | |||||||||
Net (loss) income from consolidated operations | (1,144) | (7,884) | 2,916 | 314 | 18,208 | (14,698) | |||||||||
LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax | - | - | - | - | - | - | |||||||||
NET (LOSS) INCOME | (1,144) | (7,884) | 2,916 | 314 | 18,208 | (14,698) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 764 | - | - | - | - | 764 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (1,908) | $ | (7,884) | $ | 2,916 | $ | 314 | $ | 18,208 | $ | (15,462) | |||
Adjusted EBITDA2 | $ | 31,328 | $ | 15,335 | $ | 3,089 | $ | 1,933 | $ | 21,820 | $ | (10,849) |
Year Ended December 31, 2023 | |||||||||||||||
(in thousands) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 477,690 | $ | 156,214 | $ | 52,888 | $ | 75,495 | $ | 196,207 | $ | (3,114) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 136,884 | 43,705 | 16,207 | 15,490 | 62,935 | (1,453) | |||||||||
Selling, general and administrative | 172,440 | 77,898 | 18,747 | 40,022 | 37,769 | (1,996) | |||||||||
Corporate selling, general and administrative | 53,583 | - | 3,196 | 3 | 7,928 | 42,456 | |||||||||
Stock-based compensation | 9,975 | 1,063 | 445 | 176 | 575 | 7,716 | |||||||||
Depreciation and amortization | 7,101 | 3,707 | 162 | 1,352 | 1,369 | 511 | |||||||||
Impairment of goodwill, intangible assets, and long-lived assets | 129,278 | 129,278 | - | - | - | - | |||||||||
Total operating expenses | 509,261 | 255,651 | 38,757 | 57,043 | 110,576 | 47,234 | |||||||||
Operating (loss) income | (31,571) | (99,437) | 14,131 | 18,452 | 85,631 | (50,348) | |||||||||
INTEREST INCOME | 6,967 | - | - | - | - | 6,967 | |||||||||
INTEREST EXPENSE | 56,196 | 222 | - | - | 2,559 | 53,415 | |||||||||
GAIN ON RETIREMENT OF DEBT | 2,356 | - | - | - | - | 2,356 | |||||||||
OTHER INCOME, net | 96,084 | 7 | - | - | - | 96,077 | |||||||||
Income (loss) before income from consolidated operations before provision for (benefit from) income taxes | 17,640 | (99,652) | 14,131 | 18,452 | 83,072 | 1,637 | |||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 7,944 | (21,937) | 3,549 | 654 | 21,265 | 4,413 | |||||||||
Net income (loss) from consolidated operations | 9,696 | (77,715) | 10,582 | 17,798 | 61,807 | (2,776) | |||||||||
LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax | (5,131) | - | - | - | - | (5,131) | |||||||||
NET INCOME (LOSS) | 4,565 | (77,715) | 10,582 | 17,798 | 61,807 | (7,907) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 2,515 | - | - | - | - | 2,515 | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 2,050 | $ | (77,715) | $ | 10,582 | $ | 17,798 | $ | 61,807 | $ | (10,422) | |||
Adjusted EBITDA2 | $ | 128,379 | $ | 36,071 | $ | 14,895 | $ | 20,793 | $ | 88,764 | $ | (32,144) |
Year Ended December 31, 2022 | |||||||||||||||
(in thousands) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 484,604 | $ | 156,678 | $ | 43,117 | $ | 78,526 | $ | 209,871 | $ | (3,588) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 122,629 | 38,695 | 15,752 | 15,588 | 54,130 | (1,536) | |||||||||
Selling, general and administrative | 160,403 | 70,472 | 8,502 | 41,132 | 42,385 | (2,088) | |||||||||
Corporate selling, general and administrative | 49,854 | - | 3,404 | 7 | 8,062 | 38,381 | |||||||||
Stock-based compensation | 9,912 | 198 | 993 | 33 | 842 | 7,846 | |||||||||
Depreciation and amortization | 10,034 | 3,411 | 188 | 1,323 | 3,847 | 1,265 | |||||||||
Impairment of goodwill, intangible assets, and long-lived assets | 40,683 | 40,683 | - | - | - | - | |||||||||
Total operating expenses | 393,515 | 153,459 | 28,839 | 58,083 | 109,266 | 43,868 | |||||||||
Operating income (loss) | 91,089 | 3,219 | 14,278 | 20,443 | 100,605 | (47,456) | |||||||||
INTEREST INCOME | 939 | - | - | - | - | 939 | |||||||||
INTEREST EXPENSE | 61,751 | 198 | - | 314 | 7,676 | 53,563 | |||||||||
GAIN ON RETIREMENT OF DEBT | 6,718 | - | - | - | - | 6,718 | |||||||||
OTHER INCOME (LOSS), net | 16,083 | (617) | - | 266 | - | 16,434 | |||||||||
Income (loss) before income from consolidated operations before provision for (benefit from) income taxes | 53,078 | 2,404 | 14,278 | 20,395 | 92,929 | (76,928) | |||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 16,418 | 9,544 | 3,746 | 1,448 | 22,969 | (21,289) | |||||||||
Net income (loss) from consolidated operations | 36,660 | (7,140) | 10,532 | 18,947 | 69,960 | (55,639) | |||||||||
LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax | - | - | - | - | - | - | |||||||||
NET INCOME (LOSS) | 36,660 | (7,140) | 10,532 | 18,947 | 69,960 | (55,639) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 2,317 | - | - | - | - | 2,317 | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 34,343 | $ | (7,140) | $ | 10,532 | $ | 18,947 | $ | 69,960 | $ | (57,956) | |||
Adjusted EBITDA2 | $ | 165,180 | $ | 47,756 | $ | 15,399 | $ | 21,804 | $ | 105,294 | $ | (25,073) |
Three Months Ended March 31, 2024 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 104,410 | $ | 36,351 | $ | 8,472 | $ | 13,968 | $ | 46,225 | $ | (606) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 32,659 | 11,329 | 3,483 | 3,503 | 14,600 | (256) | |||||||||
Selling, general and administrative | 39,737 | 18,396 | 2,441 | 7,461 | 12,117 | (678) | |||||||||
Corporate selling, general and administrative | 15,892 | - | 730 | - | 1,908 | 13,254 | |||||||||
Stock-based compensation | 1,384 | 122 | 29 | 41 | 561 | 631 | |||||||||
Depreciation and amortization | 1,850 | 883 | 41 | 417 | 125 | 384 | |||||||||
Total operating expenses | 91,522 | 30,730 | 6,724 | 11,422 | 29,311 | 13,335 | |||||||||
Operating income (loss) | 12,888 | 5,621 | 1,748 | 2,546 | 16,914 | (13,941) | |||||||||
INTEREST INCOME | 1,998 | - | - | - | - | 1,998 | |||||||||
INTEREST EXPENSE | 12,998 | 58 | - | - | - | 12,940 | |||||||||
GAIN ON RETIREMENT OF DEBT | 7,874 | - | - | - | - | 7,874 | |||||||||
OTHER INCOME, net | 886 | - | - | - | - | 886 | |||||||||
Income (loss) from consolidated operations before provision for (benefit from) income taxes | 10,648 | 5,563 | 1,748 | 2,546 | 16,914 | (16,123) | |||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 2,502 | (2,022) | 548 | (569) | 4,098 | 447 | |||||||||
Net income (loss) from consolidated operations | 8,146 | 7,585 | 1,200 | 3,115 | 12,816 | (16,570) | |||||||||
LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax | (411) | - | - | - | - | (411) | |||||||||
NET INCOME (LOSS) | 7,735 | 7,585 | 1,200 | 3,115 | 12,816 | (16,981) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 242 | - | - | - | - | 242 | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 7,493 | $ | 7,585 | $ | 1,200 | $ | 3,115 | $ | 12,816 | $ | (17,223) | |||
Adjusted EBITDA2 | $ | 21,545 | $ | 6,699 | $ | 1,809 | $ | 3,004 | $ | 17,600 | $ | (7,566) |
Three Months Ended March 31, 2023 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 109,869 | $ | 35,180 | $ | 10,917 | $ | 15,071 | $ | 49,677 | $ | (976) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 33,854 | 10,331 | 4,032 | 3,434 | 16,440 | (383) | |||||||||
Selling, general and administrative | 36,715 | 15,941 | 2,718 | 7,876 | 10,817 | (637) | |||||||||
Corporate selling, general and administrative | 8,530 | - | 718 | - | 1,798 | 6,014 | |||||||||
Stock-based compensation | 3,278 | 176 | 268 | 40 | 328 | 2,466 | |||||||||
Depreciation and amortization | 2,597 | 917 | 40 | 337 | 965 | 338 | |||||||||
Impairment of goodwill, intangible assets, and long-lived assets | 16,775 | 16,775 | - | - | - | - | |||||||||
Total operating expenses | 101,749 | 44,140 | 7,776 | 11,687 | 30,348 | 7,798 | |||||||||
Operating income (loss) | 8,120 | (8,960) | 3,141 | 3,384 | 19,329 | (8,774) | |||||||||
INTEREST INCOME | 333 | - | - | - | - | 333 | |||||||||
INTEREST EXPENSE | 14,068 | 55 | - | - | 1,919 | 12,094 | |||||||||
GAIN ON RETIREMENT OF DEBT | 2,356 | - | - | - | - | 2,356 | |||||||||
OTHER (EXPENSE), net | (312) | - | - | - | (312) | ||||||||||
(Loss) income from consolidated operations before (benefit from) provision | (3,571) | (9,015) | 3,141 | 3,384 | 17,410 | (18,491) | |||||||||
(BENEFIT FROM) PROVISION FOR INCOME TAXES | (1,160) | (1,759) | 744 | - | 4,585 | (4,730) | |||||||||
Net (loss) income from consolidated operations | (2,411) | (7,256) | 2,397 | 3,384 | 12,825 | (13,761) | |||||||||
NET (LOSS) INCOME | (2,411) | (7,256) | 2,397 | 3,384 | 12,825 | (13,761) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 511 | - | - | - | - | 511 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (2,922) | $ | (7,256) | $ | 2,397 | $ | 3,384 | $ | 12,825 | $ | (14,272) | |||
Adjusted EBITDA2 | $ | 30,285 | $ | 9,022 | $ | 3,458 | $ | 3,761 | $ | 20,622 | $ | (6,578) |
Urban One, Inc. will hold a conference call to discuss its results for the year end and first fiscal quarter of 2024. The conference call is scheduled for Monday, June 10, 2024 at 4:30 p.m. EDT. To participate on this call,
A replay of the conference call will be available from 7:30 p.m. EDT June 10, 2024 until 12:00 a.m. EDT June 17, 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 1372800.
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
Notes:
1 "Broadcast and digital operating income": The radio broadcasting industry commonly refers to "station operating income" which consists of net income (loss) before depreciation and amortization, income taxes, interest expense, interest income, noncontrolling interests in income of subsidiaries, other income, net, loss from unconsolidated joint venture, corporate selling, general and administrative expenses, stock-based compensation, impairment of goodwill, intangible assets, and long-lived assets and (gain) loss on retirement of debt. However, given the diverse nature of our business, station operating income is not truly reflective of our multi-media operation and, therefore, we use the term "broadcast and digital operating income." Broadcast and digital operating income is not a measure of financial performance under GAAP. Nevertheless, broadcast and digital operating income is a significant measure used by our management to evaluate the operating performance of our core operating segments. Broadcast and digital operating income provides helpful information about our results of operations, apart from expenses associated with our fixed assets and goodwill, intangible assets, and long-lived assets, income taxes, investments, impairment charges, debt financings and retirements, corporate overhead and stock-based compensation. 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 as used by other companies. Broadcast and digital operating income does not represent operating income or loss, or cash flow from operating activities, as those terms are defined under GAAP, and should not be considered as an alternative to those measurements as an indicator of our performance.
2 "Adjusted EBITDA: Adjusted EBITDA" consists of net income (loss) plus (1) depreciation and amortization, income taxes, interest expense, net income attributable to noncontrolling interests, impairment of goodwill, intangible assets, and long-lived assets, stock-based compensation, (gain) loss on retirement of debt, employment agreement award and other compensation, corporate development costs, severance-related costs, investment income, loss from unconsolidated joint venture, less (2) other income, net 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 GAAP. 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. Accordingly, based on the previous description of Adjusted EBITDA, we believe that it provides useful information about the operating performance of our business, apart from the expenses associated with our fixed assets and goodwill, intangible assets, and long-lived assets or capital structure. Adjusted 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 of our operating segments (radio broadcasting, Reach Media, digital and cable television). Business activities unrelated to these four segments are included in an "all other" category which the Company refers to as "All other - corporate/eliminations." Adjusted EBITDA and EBITDA do not purport to represent operating income or cash flow from operating activities, as those terms are defined under GAAP, and should not be considered as alternatives to those measurements as an indicator of our performance.
3 For the three months ended December 31, 2023 and 2022, Urban One had 47,804,932 and 48,928,063 shares of common stock outstanding on a weighted average basis (basic), respectively. For the year ended December 31, 2023 and 2022, Urban One had 47,645,678 and 48,928,063 shares of common stock outstanding on a weighted average basis (basic), respectively. For the three months ended March 31, 2024 and 2023, Urban One had 48,385,386 and 47,320,832 shares of common stock outstanding on a weighted average basis (basic), respectively.
4 For the three months ended December 31, 2023 and 2022, Urban One had 47,804,932 and 52,174,337 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the year ended December 31, 2023 and 2022, Urban One had 50,243,810 and 52,174,337 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the three months ended March 31, 2024 and 2023, Urban One had 49,921,803 and 47,420,832 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.
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