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 7th 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.