SILVER SPRING, Md.,
Aug. 8, 2024 /PRNewswire/
-- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its
results for the quarter ended June 30,
2024. For the three months ended June
30, 2024, net revenues were approximately $117.7 million, a decrease of 9.2% from the same
period in 2023. The Company reported operating loss of
approximately $60.4 million for the
three months ended June 30, 2024,
compared to operating income of approximately $9.7 million for the three months ended
June 30, 2023. Broadcast and digital
operating income1 was approximately $34.2 million, a decrease of 27.7% from the same
period in 2023. Net loss was approximately $45.4 million or $(0.94) per share (basic) compared to income of
$70.4 million or $1.48 per share (basic) for the same period in
2023. Adjusted EBITDA2 was approximately
$28.4 million for the three months
ended June 30, 2024, compared to
approximately $37.5 million for the
same period in 2023.
Alfred C. Liggins, III, Urban
One's CEO and President stated, "On a same station basis our radio
division finished Q2 -5.6% excluding political, and -3.0% with
political. We saw a sequential improvement in national revenues vs.
Q1, which was offset by weaker local revenues. Q3 core radio
revenue is currently pacing down 6.9% on a same station basis, down
5.1% including political, and up 7.0% overall. We are starting to
see a significant uptick in political advertising revenues, and
remain optimistic for the remainder of the year, which should
benefit both our radio and digital divisions. Our Cable TV business
continues to suffer from subscriber churn and audience delivery
shortfall, impacting both advertising and affiliate revenues,
although we are seeing a bounce-back in ratings and delivery in Q3.
Our digital business experienced weaker advertising demand than
prior year, but remains well positioned for the second half of the
year, particularly with political and CTV advertising. During Q2 we
repurchased an additional $35.5
million of our 2028 notes at 78.0%, and we ended the quarter
with approximately $132.4 million of
cash."
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(unaudited)
|
|
(unaudited)
|
|
STATEMENT OF
OPERATIONS
|
(in thousands, except
share data)
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
NET REVENUES
|
$
117,744
|
|
$
129,652
|
|
$
222,154
|
|
$
239,521
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
33,256
|
|
32,547
|
|
65,915
|
|
66,401
|
|
Selling, general and
administrative, excluding stock-based compensation
|
50,292
|
|
49,777
|
|
90,029
|
|
86,492
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
9,787
|
|
11,385
|
|
25,679
|
|
19,915
|
|
Stock-based
compensation
|
1,079
|
|
2,321
|
|
2,463
|
|
5,598
|
|
Depreciation and
amortization
|
2,993
|
|
1,886
|
|
4,843
|
|
4,483
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
80,758
|
|
22,081
|
|
80,758
|
|
38,856
|
|
Total operating
expenses
|
178,165
|
|
119,997
|
|
269,687
|
|
221,745
|
|
Operating (loss) income
|
(60,421)
|
|
9,655
|
|
(47,533)
|
|
17,776
|
|
INTEREST
INCOME
|
1,777
|
|
1,898
|
|
3,775
|
|
2,232
|
|
INTEREST
EXPENSE
|
12,404
|
|
13,972
|
|
25,402
|
|
28,040
|
|
GAIN ON RETIREMENT OF
DEBT
|
7,425
|
|
-
|
|
15,299
|
|
2,356
|
|
Other income,
net
|
14
|
|
96,773
|
|
900
|
|
96,460
|
|
(Loss) income before
(benefit from) provision for income taxes and non-controlling
interest in income of subsidiaries
|
(63,609)
|
|
94,354
|
|
(52,961)
|
|
90,784
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
(18,512)
|
|
23,197
|
|
(16,010)
|
|
22,037
|
|
Net (loss) income from
consolidated operations
|
(45,097)
|
|
71,157
|
|
(36,951)
|
|
68,747
|
|
Loss from
unconsolidated joint venture
|
-
|
|
-
|
|
(411)
|
|
-
|
|
NET (LOSS)
INCOME
|
(45,097)
|
|
71,157
|
|
(37,362)
|
|
68,747
|
|
NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING INTERESTS
|
334
|
|
791
|
|
576
|
|
1,303
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(45,431)
|
|
$
70,366
|
|
$
(37,938)
|
|
$
67,444
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic3
|
48,483,639
|
|
47,629,163
|
|
48,434,513
|
|
47,514,722
|
|
Weighted average shares
outstanding - diluted4
|
48,483,639
|
|
50,616,435
|
|
48,434,513
|
|
50,373,714
|
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
PER SHARE DATA - basic
and diluted:
|
(unaudited)
|
|
(unaudited)
|
|
(in thousands, except
per share data)
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to common stockholders
(basic)
|
(0.94)
|
|
1.48
|
|
(0.78)
|
|
1.42
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to common stockholders
(diluted)
|
(0.94)
|
|
1.39
|
|
(0.78)
|
|
1.34
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
|
Broadcast and digital
operating income 1
|
$
34,196
|
|
$
47,328
|
|
$
66,210
|
|
$
86,628
|
|
|
|
|
|
|
|
|
|
Broadcast and
digital operating income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common stockholders
|
$
(45,431)
|
|
$
70,366
|
|
$
(37,938)
|
|
$
67,444
|
|
Add back/(deduct)
certain non-broadcast and digital operating income items included
in net (loss) income:
|
|
|
|
|
|
|
|
|
Interest
income
|
(1,777)
|
|
(1,898)
|
|
(3,775)
|
|
(2,232)
|
|
Interest
expense
|
12,404
|
|
13,972
|
|
25,402
|
|
28,040
|
|
(Benefit from)
provision for income taxes
|
(18,512)
|
|
23,197
|
|
(16,010)
|
|
22,037
|
|
Corporate selling,
general and administrative expenses
|
9,787
|
|
11,385
|
|
25,679
|
|
19,915
|
|
Stock-based
compensation
|
1,079
|
|
2,321
|
|
2,463
|
|
5,598
|
|
Gain on retirement of
debt
|
(7,425)
|
|
-
|
|
(15,299)
|
|
(2,356)
|
|
Other income,
net
|
(14)
|
|
(96,773)
|
|
(900)
|
|
(96,460)
|
|
Loss from
unconsolidated joint venture
|
-
|
|
-
|
|
411
|
|
-
|
|
Depreciation and
amortization
|
2,993
|
|
1,886
|
|
4,843
|
|
4,483
|
|
Net income
attributable to non-controlling interests
|
334
|
|
791
|
|
576
|
|
1,303
|
|
Impairment of
goodwill, intangible assets, and long-lived assets
|
80,758
|
|
22,081
|
|
80,758
|
|
38,856
|
|
Broadcast and digital
operating income
|
$
34,196
|
|
$
47,328
|
|
$
66,210
|
|
$
86,628
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
28,415
|
|
$
37,504
|
|
$
49,958
|
|
$
67,790
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common stockholders
|
$
(45,431)
|
|
$
70,366
|
|
$
(37,938)
|
|
$
67,444
|
|
Interest
income
|
(1,777)
|
|
(1,898)
|
|
(3,775)
|
|
(2,232)
|
|
Interest
expense
|
12,404
|
|
13,972
|
|
25,402
|
|
28,040
|
|
(Benefit from)
provision for income taxes
|
(18,512)
|
|
23,197
|
|
(16,010)
|
|
22,037
|
|
Depreciation and
amortization
|
2,993
|
|
1,886
|
|
4,843
|
|
4,483
|
|
EBITDA
|
$
(50,323)
|
|
$
107,523
|
|
$
(27,478)
|
|
$
119,772
|
|
Stock-based
compensation
|
1,079
|
|
2,321
|
|
2,463
|
|
5,598
|
|
Gain on retirement of
debt
|
(7,425)
|
|
-
|
|
(15,299)
|
|
(2,356)
|
|
Other income,
net
|
(14)
|
|
(96,773)
|
|
(900)
|
|
(96,460)
|
|
Loss from
unconsolidated joint venture
|
-
|
|
-
|
|
411
|
|
-
|
|
Net income
attributable to non-controlling interests
|
334
|
|
791
|
|
576
|
|
1,303
|
|
Corporate costs
related to remediation efforts
|
4,167
|
|
3,099
|
|
9,524
|
|
2,723
|
|
Employment Agreement
Award and other compensation
|
-
|
|
(1,674)
|
|
-
|
|
(1,818)
|
|
Severance-related
costs
|
516
|
|
136
|
|
580
|
|
287
|
|
Impairment of
goodwill, intangible assets, and long-lived assets
|
80,758
|
|
22,081
|
|
80,758
|
|
38,856
|
|
Investment expense
from MGM National Harbor
|
-
|
|
-
|
|
-
|
|
(115)
|
|
Other nonrecurring
expenses
|
(677)
|
|
-
|
|
(677)
|
|
-
|
|
Adjusted
EBITDA
|
$
28,415
|
|
$
37,504
|
|
$
49,958
|
|
$
67,790
|
|
June 30,
2024
|
|
December 31,
2023
|
|
|
|
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
|
SELECTED BALANCE SHEET
DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
$
132,372
|
|
$
233,570
|
|
Intangible assets,
net
|
562,642
|
|
645,979
|
|
Total assets
|
1,019,625
|
|
1,211,173
|
|
Total debt (including
current portion, net of issuance costs)
|
607,865
|
|
716,246
|
|
Total
liabilities
|
771,179
|
|
920,588
|
|
Total stockholders'
equity
|
239,375
|
|
274,065
|
|
Redeemable
non-controlling interests
|
9,071
|
|
16,520
|
|
|
|
|
|
June 30,
2024
|
|
Applicable Interest
Rate
|
|
(in
thousands)
|
|
|
|
SELECTED LEVERAGE
DATA:
|
|
|
|
|
7.375% senior secured
notes due February 2028, net of issuance costs of approximately
$6.6 million (fixed rate)
|
$
607,865
|
|
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 June 30,
2024, we recognized approximately $117.7 million in net revenues compared to
approximately $129.7 million during
the three months ended June 30, 2023.
These amounts are net of agency and outside sales representative
commissions. We recognized approximately $42.0 million of revenues from our radio
broadcasting segment during the three months ended June 30, 2024, compared to approximately
$39.2 million during the three months
ended June 30, 2023, an increase of
approximately $2.8 million. This
increase was primarily due to the Houston station acquisition,
which was completed in August 2023,
offset by a decrease in national advertising. We recognized
approximately $18.9 million of
revenues from our Reach Media segment during the three months ended
June 30, 2024, compared to
approximately $20.1 million for the
three months ended June 30, 2023, a
decrease of approximately $1.2
million. The decrease was primarily driven by the decrease
in overall demand and attrition of advertisers. We recognized
approximately $15.9 million of
revenues from our digital segment during the three months ended
June 30, 2024, compared to
approximately $18.9 million for the
three months ended June 30, 2023, a
decrease of approximately $3.0
million. The decrease was primarily driven by a decrease in
national markets digital sales and lower demand from the Company's
advertisers. We recognized approximately $41.5 million of revenues from our cable
television segment during the three months ended June 30, 2024, compared to approximately
$52.4 million for the three months
ended June 30, 2023, a decrease of
approximately $10.9 million. The
decrease was primarily driven by a decrease in audience viewership
affecting advertising sales and the consistent churn in
subscribers.
The following charts indicates the sources of our net revenues
for the three and six months ended June 30,
2024:
|
Three Months Ended
June 30,
|
|
|
|
|
|
2024
|
|
2023
|
|
$
Change
|
|
%
Change
|
|
(Unaudited)
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Net
Revenues:
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
$
45,421
|
|
$
45,135
|
|
$
286
|
|
0.6 %
|
|
Political
Advertising
|
2,152
|
|
410
|
|
1,742
|
|
424.9
|
|
Digital
Advertising
|
15,529
|
|
18,861
|
|
(3,332)
|
|
-17.7
|
|
Cable Television
Advertising
|
22,170
|
|
30,247
|
|
(8,077)
|
|
-26.7
|
|
Cable Television
Affiliate Fees
|
19,315
|
|
22,184
|
|
(2,869)
|
|
-12.9
|
|
Event Revenues &
Other
|
13,157
|
|
12,815
|
|
342
|
|
2.7
|
|
|
|
|
|
|
|
|
|
Net Revenues (as
reported)
|
$
117,744
|
|
$
129,652
|
|
$
(11,908)
|
|
-9.2 %
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
2024
|
|
2023
|
|
$
Change
|
|
%
Change
|
|
(Unaudited)
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Net
Revenues:
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
$
86,761
|
|
$
88,242
|
|
$
(1,481)
|
|
-1.7 %
|
|
Political
Advertising
|
3,388
|
|
658
|
|
2,730
|
|
414.9
|
|
Digital
Advertising
|
29,475
|
|
33,932
|
|
(4,457)
|
|
-13.1
|
|
Cable Television
Advertising
|
47,535
|
|
56,069
|
|
(8,534)
|
|
-15.2
|
|
Cable Television
Affiliate Fees
|
40,103
|
|
46,020
|
|
(5,917)
|
|
-12.9
|
|
Event Revenues &
Other
|
14,892
|
|
14,600
|
|
292
|
|
2.0
|
|
|
|
|
|
|
|
|
|
Net Revenues (as
reported)
|
$
222,154
|
|
$
239,521
|
|
$
(17,367)
|
|
-7.3 %
|
Operating expenses, excluding depreciation and amortization,
stock-based compensation, and impairment of goodwill, intangible
assets and long-lived assets, were approximately $93.3 million for the three months ended
June 30, 2024, down 0.4% from the
approximately $93.7 million for the
comparable period in 2023. The overall decrease in operating
expense was primarily due to a non-cash benefit related to change
in fair value of the Employment Agreement Award liability, offset
by higher third-party consulting and audit expenses.
Depreciation and amortization expense was approximately
$3.0 million for the three months
ended June 30, 2024, compared to
approximately $1.9 million for the
three months ended June 30, 2023, an
increase of approximately $1.1
million due to additional depreciation on leasehold
improvements and asset retirement obligation assets during the
three months ended June 30, 2024.
Impairment of goodwill, intangible assets and long-lived assets
was approximately $80.8 million
during the three months ended June 30,
2024, compared to $22.1
million for the three months ended June 30, 2023. The impairment loss of
$80.8 million in the second quarter
2024 was entirely associated with the impairment of broadcasting
licenses within the radio broadcasting segment. The primary factors
leading to the impairments were a decline in projected gross
market revenues and operating profits and an increase in discount
rate.
Interest income was approximately $1.8
million for the three months ended June 30, 2024, compared to $1.9 million for the three months ended
June 30, 2023. The decrease was
driven by lower cash and cash equivalents balances in the three
months ended June 30, 2024, than in
the corresponding period in 2023.
Interest expense was approximately $12.4
million for the three months ended June 30, 2024, compared to approximately
$14.0 million for the three months
ended June 30, 2023, a decrease of
approximately $1.6 million. The
decrease was due to lower overall debt balances outstanding. During
the three months ended June 30, 2024,
the Company repurchased approximately $35.5 million of its 2028 Notes at an
average price of approximately 78.0% of par, resulting in a net
gain on retirement of debt of approximately $7.4 million.
Other income, net, was approximately $0.0
million for the three months ended June 30, 2024, compared to $96.8 million for the three months ended
June 30, 2023. The decrease was
primarily due to the gain on sale of the Company's MGM Investment,
which was recognized in other income, net, during the three months
ended June 30, 2023.
For the three months ended June 30,
2024, we recorded a benefit from income taxes of
approximately $18.5 million. This
amount is based on the actual effective tax rate of 29.1%. This
rate includes $0.1 million of
discrete tax benefits primarily related to deferred rate changes.
For the three months ended June 30,
2023, we recorded a provision for income taxes of
approximately $23.2 million on
pre-tax income from consolidated operations of approximately
$94.4 million which results in an
effective tax rate of 24.6%. This rate includes $23.9 million of discrete tax expense primarily
related to the gain on our MGM investment.
Other pertinent financial information includes capital
expenditures of approximately $2.2
million and $2.1 million for
the three months ended June 30, 2024
and 2023, respectively.
During the three months ended June 30,
2024, the Company repurchased 449,277 shares of Class A
Common Stock in the amount of approximately $0.9 million at an average price of $2.06 per share and repurchased 113,283 shares of
Class D Common Stock in the amount of approximately $0.2 million at an average price of $1.57 per share. During the three months ended
June 30, 2023, the Company did not
repurchase any shares of Class A Common Stock and repurchased
18,459 shares of Class D Common Stock in the amount of
approximately $0.1 million at an
average price of $6.00 per share.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three and six months ended
June 30, 2024 are included.
|
|
Three Months Ended June
30, 2024
|
|
|
(in thousands,
unaudited)
|
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
All Other -
Corporate/
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUES
|
|
$ 117,744
|
|
$
41,999
|
|
$
18,929
|
|
$
15,887
|
|
$
41,497
|
|
$
(568)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
33,256
|
|
11,436
|
|
3,641
|
|
3,520
|
|
14,913
|
|
(254)
|
|
Selling, general and
administrative
|
|
50,292
|
|
19,747
|
|
10,963
|
|
9,438
|
|
10,580
|
|
(436)
|
|
Corporate selling,
general and administrative
|
|
9,787
|
|
-
|
|
649
|
|
6
|
|
1,582
|
|
7,550
|
|
Stock-based
compensation
|
|
1,079
|
|
115
|
|
21
|
|
41
|
|
228
|
|
674
|
|
Depreciation and
amortization
|
|
2,993
|
|
2,079
|
|
40
|
|
397
|
|
176
|
|
301
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
|
80,758
|
|
80,758
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
178,165
|
|
114,135
|
|
15,314
|
|
13,402
|
|
27,479
|
|
7,835
|
|
Operating (loss) income
|
|
(60,421)
|
|
(72,136)
|
|
3,615
|
|
2,485
|
|
14,018
|
|
(8,403)
|
|
INTEREST
INCOME
|
|
1,777
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,777
|
|
INTEREST
EXPENSE
|
|
12,404
|
|
58
|
|
-
|
|
-
|
|
-
|
|
12,346
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
7,425
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,425
|
|
OTHER INCOME,
net
|
|
14
|
|
1
|
|
-
|
|
-
|
|
-
|
|
13
|
|
(Loss) income before
income from consolidated operations before (benefit
from) provision for income taxes
|
|
(63,609)
|
|
(72,193)
|
|
3,615
|
|
2,485
|
|
14,018
|
|
(11,534)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(18,512)
|
|
(18,057)
|
|
624
|
|
(652)
|
|
2,766
|
|
(3,193)
|
|
NET (LOSS)
INCOME
|
|
(45,097)
|
|
(54,136)
|
|
2,991
|
|
3,137
|
|
11,252
|
|
(8,341)
|
|
NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING INTERESTS
|
|
334
|
|
-
|
|
-
|
|
-
|
|
-
|
|
334
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
|
$ (45,431)
|
|
$ (54,136)
|
|
$
2,991
|
|
$
3,137
|
|
$
11,252
|
|
$
(8,675)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
|
$
28,415
|
|
$
10,570
|
|
$
3,684
|
|
$
2,923
|
|
$
14,511
|
|
$
(3,273)
|
|
Three Months Ended June
30, 2023
|
|
(in thousands,
unaudited)
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
All Other -
Corporate/
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUES
|
$ 129,652
|
|
$
39,196
|
|
$
20,052
|
|
$
18,908
|
|
$
52,430
|
|
$
(934)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
32,547
|
|
10,524
|
|
3,974
|
|
3,513
|
|
14,919
|
|
(383)
|
|
Selling, general and
administrative
|
49,777
|
|
18,786
|
|
10,857
|
|
9,265
|
|
11,602
|
|
(733)
|
|
Corporate selling,
general and administrative
|
11,385
|
|
-
|
|
619
|
|
-
|
|
1,849
|
|
8,917
|
|
Stock-based
compensation
|
2,321
|
|
114
|
|
174
|
|
40
|
|
231
|
|
1,762
|
|
Depreciation and
amortization
|
1,886
|
|
888
|
|
40
|
|
364
|
|
251
|
|
343
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
22,081
|
|
22,081
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
119,997
|
|
52,393
|
|
15,664
|
|
13,182
|
|
28,852
|
|
9,906
|
|
Operating income (loss)
|
9,655
|
|
(13,197)
|
|
4,388
|
|
5,726
|
|
23,578
|
|
(10,840)
|
|
INTEREST
INCOME
|
1,898
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,898
|
|
INTEREST
EXPENSE
|
13,972
|
|
56
|
|
-
|
|
-
|
|
640
|
|
13,276
|
|
OTHER INCOME (LOSS),
net
|
96,773
|
|
(67)
|
|
-
|
|
-
|
|
-
|
|
96,840
|
|
Income (loss) before
income from consolidated operations before provision
for (benefit from) income taxes
|
94,354
|
|
(13,320)
|
|
4,388
|
|
5,726
|
|
22,938
|
|
74,622
|
|
PROVISION FOR (BENEFIT
FROM) INCOME TAXES
|
23,197
|
|
(5,160)
|
|
1,289
|
|
-
|
|
6,633
|
|
20,435
|
|
NET INCOME
(LOSS)
|
71,157
|
|
(8,160)
|
|
3,099
|
|
5,726
|
|
16,305
|
|
54,187
|
|
NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING INTERESTS
|
791
|
|
-
|
|
-
|
|
-
|
|
-
|
|
791
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
70,366
|
|
$
(8,160)
|
|
$
3,099
|
|
$
5,726
|
|
$
16,305
|
|
$
53,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
37,504
|
|
$
9,997
|
|
$
4,602
|
|
$
6,156
|
|
$
24,060
|
|
$
(7,311)
|
|
Six Months Ended June
30, 2024
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
All Other -
Corporate/
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUES
|
$ 222,154
|
|
$
78,350
|
|
$
27,401
|
|
$
29,854
|
|
$
87,723
|
|
$
(1,174)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
65,915
|
|
22,765
|
|
7,125
|
|
7,023
|
|
29,513
|
|
(511)
|
|
Selling, general and
administrative
|
90,029
|
|
38,142
|
|
13,405
|
|
16,897
|
|
22,698
|
|
(1,113)
|
|
Corporate selling,
general and administrative
|
25,679
|
|
-
|
|
1,377
|
|
7
|
|
3,491
|
|
20,804
|
|
Stock-based
compensation
|
2,463
|
|
237
|
|
50
|
|
83
|
|
787
|
|
1,306
|
|
Depreciation and
amortization
|
4,843
|
|
2,962
|
|
82
|
|
814
|
|
301
|
|
684
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
80,758
|
|
80,758
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
269,687
|
|
144,864
|
|
22,039
|
|
24,824
|
|
56,790
|
|
21,170
|
|
Operating (loss) income
|
(47,533)
|
|
(66,514)
|
|
5,362
|
|
5,030
|
|
30,933
|
|
(22,344)
|
|
INTEREST
INCOME
|
3,775
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,775
|
|
INTEREST
EXPENSE
|
25,402
|
|
117
|
|
-
|
|
-
|
|
-
|
|
25,285
|
|
GAIN ON RETIREMENT OF
DEBT
|
15,299
|
|
-
|
|
-
|
|
-
|
|
-
|
|
15,299
|
|
OTHER INCOME,
net
|
900
|
|
1
|
|
-
|
|
-
|
|
-
|
|
899
|
|
Income (loss) before
income from consolidated operations before (benefit
from) provision for income taxes
|
(52,961)
|
|
(66,630)
|
|
5,362
|
|
5,030
|
|
30,933
|
|
(27,656)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
(16,010)
|
|
(20,079)
|
|
1,172
|
|
(1,222)
|
|
6,864
|
|
(2,745)
|
|
Net (loss) income from
consolidated operations
|
(36,951)
|
|
(46,551)
|
|
4,190
|
|
6,252
|
|
24,069
|
|
(24,911)
|
|
LOSS FROM
UNCONSOLIDATED JOINT VENTURE, net of tax
|
(411)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(411)
|
|
NET (LOSS)
INCOME
|
(37,362)
|
|
(46,551)
|
|
4,190
|
|
6,252
|
|
24,069
|
|
(25,322)
|
|
NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING INTERESTS
|
576
|
|
-
|
|
-
|
|
-
|
|
-
|
|
576
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(37,938)
|
|
$
(46,551)
|
|
$
4,190
|
|
$
6,252
|
|
$
24,069
|
|
$
(25,898)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
49,958
|
|
$
17,270
|
|
$
5,493
|
|
$
5,927
|
|
$
32,110
|
|
$ (10,842)
|
|
Six Months Ended June
30, 2023
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
All Other -
Corporate/
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUES
|
$ 239,521
|
|
$
74,376
|
|
$
30,968
|
|
$
33,979
|
|
$ 102,108
|
|
$
(1,910)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
66,401
|
|
20,856
|
|
8,006
|
|
6,948
|
|
31,358
|
|
(767)
|
|
Selling, general and
administrative
|
86,492
|
|
34,727
|
|
13,575
|
|
17,139
|
|
22,421
|
|
(1,370)
|
|
Corporate selling,
general and administrative
|
19,915
|
|
-
|
|
1,337
|
|
1
|
|
3,647
|
|
14,930
|
|
Stock-based
compensation
|
5,598
|
|
289
|
|
443
|
|
80
|
|
558
|
|
4,228
|
|
Depreciation and
amortization
|
4,483
|
|
1,805
|
|
79
|
|
701
|
|
1,216
|
|
682
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
38,856
|
|
38,856
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
221,745
|
|
96,533
|
|
23,440
|
|
24,869
|
|
59,200
|
|
17,703
|
|
Operating income (loss)
|
17,776
|
|
(22,157)
|
|
7,528
|
|
9,110
|
|
42,908
|
|
(19,613)
|
|
INTEREST
INCOME
|
2,232
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,232
|
|
INTEREST
EXPENSE
|
28,040
|
|
111
|
|
-
|
|
-
|
|
2,559
|
|
25,370
|
|
GAIN ON RETIREMENT OF
DEBT
|
2,356
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,356
|
|
OTHER INCOME (LOSS),
net
|
96,460
|
|
(67)
|
|
-
|
|
-
|
|
-
|
|
96,527
|
|
Income (loss) before
income from consolidated operations before provision
for (benefit from) income taxes
|
90,784
|
|
(22,335)
|
|
7,528
|
|
9,110
|
|
40,349
|
|
56,132
|
|
PROVISION FOR (BENEFIT
FROM) INCOME TAXES
|
22,037
|
|
(6,919)
|
|
2,033
|
|
-
|
|
11,219
|
|
15,704
|
|
NET INCOME
(LOSS)
|
68,747
|
|
(15,416)
|
|
5,495
|
|
9,110
|
|
29,130
|
|
40,428
|
|
NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING INTERESTS
|
1,303
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,303
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
67,444
|
|
$
(15,416)
|
|
$
5,495
|
|
$
9,110
|
|
$
29,130
|
|
$
39,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
67,790
|
|
$
19,018
|
|
$
8,059
|
|
$
9,917
|
|
$
44,682
|
|
$ (13,886)
|
Urban One, Inc. will hold a conference call to discuss its
results for the second fiscal quarter of 2024. The conference call
is scheduled for Thursday, August 8,
2024 at 10:00 a.m. EDT. To
participate on this call, U.S. callers may dial toll-free
1-877-226-8189; international callers may dial direct (+1)
409-207-6980. The Access Code is 9822633.
A replay of the conference call will be available from
5:00 p.m. EDT August 8, 2024 until 12:00
a.m. EDT August 15, 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 1733886.
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 August 09, 2024, we owned and/or
operated 72 independently formatted, revenues producing broadcast
stations (including 57 FM or AM stations, 13 HD stations, and the 2
low power television stations) branded under the trade name "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, 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.
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Notes:
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1
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"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, non-controlling 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.
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2
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"Adjusted EBITDA":
Adjusted EBITDA consists of net (loss) income plus (1) depreciation
and amortization, income taxes, interest expense, net income
attributable to non-controlling interests, impairment of goodwill,
intangible assets, and long-lived assets, stock-based compensation,
(gain) loss on retirement of debt, corporate costs,
severance-related costs, investment income, loss from
unconsolidated joint venture, less (2) other income, net and
interest income. Net (loss) 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.
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3
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For the three months
ended June 30, 2024 and 2023, Urban One had 48,483,639 and
47,629,163 shares of common stock outstanding on a weighted average
basis (basic), respectively. For the six months ended June 30, 2024
and 2023, Urban One had 48,434,513 and 47,514,722 shares of common
stock outstanding on a weighted average basis (basic),
respectively.
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4
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For the three months
ended June 30, 2024 and 2023, Urban One had 48,483,639 and
50,616,435 shares of common stock outstanding on a weighted average
basis (fully diluted for outstanding stock awards), respectively.
For the six months ended June 30, 2024 and 2023, Urban One had
48,434,513 and 50,373,714 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.