SILVER
SPRING, Md., Nov. 12,
2024 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK)
(NASDAQ: UONE) today reported its results for the quarter
ended September 30, 2024. For the
three months ended September 30,
2024, net revenues were approximately $110.4 million, a decrease of 6.3% from the
same period in 2023. The Company reported operating loss of
approximately $26.2 million for
the three months ended September 30,
2024, compared to operating loss of approximately
$56.1 million for the three
months ended September 30, 2023.
Broadcast and digital operating income1 was
approximately $35.4 million, a
decrease of 19.2% from the same period in 2023. Net loss was
approximately $31.8 million or
$(0.68) per share (basic) compared to
net loss of $54.4 million or
$(1.14) per share (basic) for the
same period in 2023. Adjusted EBITDA2 was
approximately $25.4 million for
the three months ended September 30,
2024, compared to approximately $34.7 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 Q3 -7.7% excluding political, and -3.6% with
political. We saw a strong uptick in political revenues beginning
in September, with Q4 core radio revenue currently pacing down
3.0%, but up 23.9% overall. Reach Media increased margins and
Adjusted EBITDA, despite an 8.2% reduction in revenue for the
quarter, due to reduced selling, general and administrative
expenses. Our Cable TV business continues to suffer from subscriber
churn and audience delivery shortfall, impacting both advertising
and affiliate revenues, which were both down double digit
percentages in Q3. Digital advertising revenues were down 4.1% as
the business experienced moderately weaker advertising demand than
prior year. During Q2 we repurchased an additional $14.5 million of our 2028 notes at 75.0%, and we
ended the quarter with approximately $115.5
million of cash, cash equivalents and restricted cash."
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(unaudited)
|
|
(unaudited)
|
|
STATEMENT OF
OPERATIONS
|
(in thousands, except
share data)
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
110,393
|
|
$
117,825
|
|
$
332,547
|
|
$
357,346
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
33,911
|
|
33,903
|
|
99,826
|
|
100,304
|
|
Selling, general and
administrative, excluding stock-based compensation
|
41,112
|
|
40,142
|
|
131,141
|
|
126,634
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
12,354
|
|
10,418
|
|
38,033
|
|
30,333
|
|
Stock-based
compensation
|
1,152
|
|
2,218
|
|
3,615
|
|
7,816
|
|
Depreciation and
amortization
|
1,238
|
|
1,808
|
|
6,081
|
|
6,291
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
46,823
|
|
85,448
|
|
127,581
|
|
124,304
|
|
Total operating
expenses
|
136,590
|
|
173,937
|
|
406,277
|
|
395,682
|
|
Operating loss
|
(26,197)
|
|
(56,112)
|
|
(73,730)
|
|
(38,336)
|
|
INTEREST
INCOME
|
1,088
|
|
2,256
|
|
4,863
|
|
4,488
|
|
INTEREST
EXPENSE
|
11,649
|
|
13,983
|
|
37,051
|
|
42,023
|
|
GAIN ON RETIREMENT OF
DEBT
|
3,472
|
|
-
|
|
18,771
|
|
2,356
|
|
Other income,
net
|
74
|
|
75
|
|
974
|
|
96,535
|
|
(Loss) income before
(benefit from) provision for income taxes and non-controlling
interest in income of subsidiaries
|
(33,212)
|
|
(67,764)
|
|
(86,173)
|
|
23,020
|
|
(BENEFIT FROM)PROVISION
FOR INCOME TAXES
|
(1,814)
|
|
(16,778)
|
|
(17,824)
|
|
5,259
|
|
Net (loss) income from
consolidated operations
|
(31,398)
|
|
(50,986)
|
|
(68,349)
|
|
17,761
|
|
Loss from
unconsolidated joint venture
|
-
|
|
(2,728)
|
|
(411)
|
|
(2,728)
|
|
NET (LOSS)
INCOME
|
(31,398)
|
|
(53,714)
|
|
(68,760)
|
|
15,033
|
|
NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING INTERESTS
|
400
|
|
697
|
|
976
|
|
2,000
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(31,798)
|
|
$
(54,411)
|
|
$
(69,736)
|
|
$
13,033
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic3
|
47,105,290
|
|
47,722,263
|
|
48,614,438
|
|
47,592,010
|
|
Weighted average shares
outstanding - diluted4
|
47,105,290
|
|
47,722,263
|
|
48,614,438
|
|
50,358,881
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 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)
|
(0.68)
|
|
(1.14)
|
|
(1.43)
|
|
0.27
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to common stockholders
(diluted)
|
(0.68)
|
|
(1.14)
|
|
(1.43)
|
|
0.26
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
|
Broadcast and digital
operating income 1
|
$
35,370
|
|
$
43,780
|
|
$
101,580
|
|
$
130,408
|
|
|
|
|
|
|
|
|
|
Broadcast and
digital operating income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to common stockholders
|
$
(31,798)
|
|
$
(54,411)
|
|
$
(69,736)
|
|
$
13,033
|
|
Add back/(deduct)
certain non-broadcast and digital operating income items included
in net (loss) income:
|
|
|
|
|
|
|
|
|
Interest
income
|
(1,088)
|
|
(2,256)
|
|
(4,863)
|
|
(4,488)
|
|
Interest
expense
|
11,649
|
|
13,983
|
|
37,051
|
|
42,023
|
|
(Benefit from)
provision for income taxes
|
(1,814)
|
|
(16,778)
|
|
(17,824)
|
|
5,259
|
|
Corporate selling,
general and administrative expenses
|
12,354
|
|
10,418
|
|
38,033
|
|
30,333
|
|
Stock-based
compensation
|
1,152
|
|
2,218
|
|
3,615
|
|
7,816
|
|
Gain on retirement of
debt
|
(3,472)
|
|
-
|
|
(18,771)
|
|
(2,356)
|
|
Other income,
net
|
(74)
|
|
(75)
|
|
(974)
|
|
(96,535)
|
|
Loss from
unconsolidated joint venture
|
-
|
|
2,728
|
|
411
|
|
2,728
|
|
Depreciation and
amortization
|
1,238
|
|
1,808
|
|
6,081
|
|
6,291
|
|
Net income
attributable to non-controlling interests
|
400
|
|
697
|
|
976
|
|
2,000
|
|
Impairment of
goodwill, intangible assets, and long-lived assets
|
46,823
|
|
85,448
|
|
127,581
|
|
124,304
|
|
Broadcast and digital
operating income
|
$
35,370
|
|
$
43,780
|
|
$
101,580
|
|
$
130,408
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
25,414
|
|
$
34,650
|
|
$
76,593
|
|
$
103,874
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to common stockholders
|
$
(31,798)
|
|
$
(54,411)
|
|
$
(69,736)
|
|
$
13,033
|
|
Interest
income
|
(1,088)
|
|
(2,256)
|
|
(4,863)
|
|
(4,488)
|
|
Interest
expense
|
11,649
|
|
13,983
|
|
37,051
|
|
42,023
|
|
(Benefit from)
provision for income taxes
|
(1,814)
|
|
(16,778)
|
|
(17,824)
|
|
5,259
|
|
Depreciation and
amortization
|
1,238
|
|
1,808
|
|
6,081
|
|
6,291
|
|
EBITDA
|
$
(21,813)
|
|
$
(57,654)
|
|
$
(49,291)
|
|
$
62,118
|
|
Stock-based
compensation
|
1,152
|
|
2,218
|
|
3,615
|
|
7,816
|
|
Gain on retirement of
debt
|
(3,472)
|
|
-
|
|
(18,771)
|
|
(2,356)
|
|
Other income,
net
|
(74)
|
|
(75)
|
|
(974)
|
|
(96,535)
|
|
Loss from
unconsolidated joint venture
|
-
|
|
2,728
|
|
411
|
|
2,728
|
|
Net income
attributable to non-controlling interests
|
400
|
|
697
|
|
976
|
|
2,000
|
|
Corporate development
costs
|
1,339
|
|
1,594
|
|
10,863
|
|
4,317
|
|
Employment Agreement
Award and other compensation
|
-
|
|
(845)
|
|
-
|
|
(2,663)
|
|
Severance-related
costs
|
251
|
|
31
|
|
831
|
|
318
|
|
Impairment of
goodwill, intangible assets, and long-lived assets
|
46,823
|
|
85,448
|
|
127,581
|
|
124,304
|
|
Investment expense
from MGM National Harbor
|
-
|
|
-
|
|
-
|
|
(115)
|
|
Other nonrecurring
expenses
|
46
|
|
-
|
|
(631)
|
|
-
|
|
Loss from ceased
non-core businesses initiatives
|
762
|
|
508
|
|
1,983
|
|
1,942
|
|
Adjusted
EBITDA
|
$
25,414
|
|
$
34,650
|
|
$
76,593
|
|
$
103,874
|
|
September 30,
2024
|
|
December 31,
2023
|
|
|
|
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
|
SELECTED BALANCE SHEET
DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
$
115,489
|
|
$
233,570
|
|
Intangible assets,
net
|
514,756
|
|
645,979
|
|
Total assets
|
962,603
|
|
1,211,173
|
|
Total debt (including
current portion, net of issuance costs)
|
593,918
|
|
716,246
|
|
Total
liabilities
|
747,203
|
|
920,588
|
|
Total stockholders'
equity
|
204,764
|
|
274,065
|
|
Redeemable
non-controlling interests
|
10,636
|
|
16,520
|
|
September 30,
2024
|
|
Applicable Interest
Rate
|
|
(in
thousands)
|
|
|
|
SELECTED LEVERAGE
DATA:
|
|
|
|
|
7.375% senior secured
notes due February 2028, net of issuance costs of approximately
$6.1 million (fixed rate)
|
$
593,918
|
|
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, 2024, we recognized approximately $110.4 million in net revenues compared
to approximately $117.8 million during the three months
ended September 30, 2023. These
amounts are net of agency commissions. We recognized approximately
$39.7 million of revenue
from our Radio Broadcasting segment during the three months ended
September 30, 2024, compared to
approximately $40.2 million during the three months
ended September 30, 2023, a decrease
of approximately $0.5 million.
This decrease was primarily due to a decrease in national
advertising offset by the Houston station acquisition, which was
completed in August 2023. We
recognized approximately $10.2 million of revenue from our Reach
Media segment during the three months ended September 30, 2024, compared to approximately
$11.2 million for the three
months ended September 30, 2023, a
decrease of approximately $1.0 million. The decrease was primarily
driven by the decrease in overall demand and attrition of
advertisers. We recognized approximately $20.4 million of revenue from our
digital segment during each of the three months ended September 30, 2024 and 2023, respectively. We
recognized approximately $40.7 million of revenue from our cable
television segment during the three months ended September 30, 2024, compared to approximately
$46.8 million for the three
months ended September 30, 2023, a
decrease of approximately $6.1 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 nine months ended September 30, 2024:
|
Three Months Ended
September 30,
|
|
|
|
|
|
2024
|
|
2023
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Net
Revenues:
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
$
44,991
|
|
$
46,651
|
|
$
(1,660)
|
|
(3.6) %
|
|
Political
Advertising
|
3,547
|
|
1,101
|
|
2,446
|
|
222.2 %
|
|
Digital
Advertising
|
19,434
|
|
20,269
|
|
(835)
|
|
(4.1) %
|
|
Cable Television
Advertising
|
21,868
|
|
25,218
|
|
(3,350)
|
|
(13.3) %
|
|
Cable Television
Affiliate Fees
|
18,808
|
|
21,569
|
|
(2,761)
|
|
(12.8) %
|
|
Event Revenues &
Other
|
1,745
|
|
3,017
|
|
(1,272)
|
|
(42.2) %
|
|
Net Revenues (as
reported)
|
$
110,393
|
|
$
117,825
|
|
$
(7,432)
|
|
(6.3) %
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
2024
|
|
2023
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Net
Revenues:
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
$
131,753
|
|
$
134,549
|
|
$
(2,796)
|
|
(2.1) %
|
|
Political
Advertising
|
6,935
|
|
1,933
|
|
5,002
|
|
258.8 %
|
|
Digital
Advertising
|
48,910
|
|
54,027
|
|
(5,117)
|
|
(9.5) %
|
|
Cable Television
Advertising
|
69,403
|
|
81,286
|
|
(11,883)
|
|
(14.6) %
|
|
Cable Television
Affiliate Fees
|
58,910
|
|
67,589
|
|
(8,679)
|
|
(12.8) %
|
|
Event Revenues &
Other
|
16,636
|
|
17,962
|
|
(1,326)
|
|
(7.4) %
|
|
Net Revenues (as
reported)
|
$
332,547
|
|
$
357,346
|
|
$
(24,799)
|
|
(6.9) %
|
|
|
|
|
|
|
|
|
Operating expenses, excluding depreciation and amortization,
stock-based compensation, and impairment of goodwill, intangible
assets and long-lived assets, were approximately $87.4 million for the three months ended
September 30, 2024, up 3.5% from
approximately $84.5 million for the
comparable period in 2023. The overall increase in operating
expense was primarily due to higher expenses in the Houston radio market as a result of the
acquisition in August of 2023, higher third party professional fees
and cloud-based software licenses.
Depreciation and amortization expense was approximately
$1.2 million for the three
months ended September 30, 2024,
compared to approximately $1.8 million for the three months ended
September 30, 2023, a decrease of
approximately $0.6 million the
due to the write off of aged property and equipment, net during the
three months ended September 30,
2024.
Impairment of goodwill, intangible assets and long-lived assets
was approximately $46.8 million
during the three months ended September 30,
2024, compared to $85.4 million for the three months
ended September 30, 2023. The
impairment loss of $46.8 million
in the third quarter 2024 was associated with the impairment of
broadcasting licenses within the radio broadcasting segment and TV
One Trade name. The primary factors leading to the impairments were
an increase in the discount rate, continued decline of projected
gross market revenues for Radio Broadcasting, projected revenues
for TV One and a decline in operating profit margin.
Interest income was approximately $1.1 million for the three months ended
September 30, 2024, compared to
$2.3 million for the three
months ended September 30, 2023. The
decrease was driven by lower cash and cash equivalents
balances during the three months ended September 30, 2024, than in the corresponding
period in 2023.
Interest expense was approximately $11.6 million for the three months ended
September 30, 2024, compared to
approximately $14.0 million for
the three months ended September 30,
2023, a decrease of approximately $2.3 million. During the three months ended
September 30, 2024, the Company
continued to repurchase its 2028 Notes, reducing the outstanding
balance to $600.0 million compared to
$725.0 million as of September 30, 2023.
For the three months ended September 30,
2024, we recorded a benefit from income taxes of
approximately $1.8 million resulting in an effective
tax rate of 5.5%. This rate includes discrete tax expense of
$2.9 million primarily related to
return to provision adjustments, changes in valuation allowance for
certain of our state net operating losses, and stock-based
compensation. For the three months ended September 30, 2023, we recorded a benefit from
income taxes of approximately $16.8
million resulting in an effective tax rate of 23.8%. This
rate includes $0.3 million of
discrete tax benefits primarily related to deferred rate
changes.
Other pertinent financial information includes capital
expenditures of approximately $1.6 million and $2.5 million for the three months ended
September 30, 2024 and 2023,
respectively.
During the three months ended September
30, 2024, the Company repurchased 1,015,023 shares of Class
A Common Stock in the amount of approximately $2.0 million at an average price of $2.01 per share and repurchased 586,989 shares of
Class D Common Stock in the amount of approximately $0.8 million at an average price of $1.31 per share. During the three months ended
September 30, 2023, the Company did
not repurchase any shares of Class A Common Stock and repurchased
824 shares of Class D Common Stock in the amount of approximately
$3,000 at an average price of
$3.99 per share.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the three and nine months ended
September 30, 2024 are included.
|
Three Months Ended
September 30, 2024
|
|
(in thousands,
unaudited)
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
All Other -
Corporate/
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$ 110,393
|
|
$
39,716
|
|
$
10,247
|
|
$
20,398
|
|
$
40,690
|
|
$
(658)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
33,911
|
|
11,779
|
|
3,700
|
|
3,481
|
|
15,177
|
|
(226)
|
|
Selling, general and
administrative
|
41,112
|
|
21,267
|
|
1,451
|
|
9,831
|
|
8,815
|
|
(252)
|
|
Corporate selling,
general and administrative
|
12,354
|
|
-
|
|
699
|
|
3
|
|
1,638
|
|
10,014
|
|
Stock-based
compensation
|
1,152
|
|
125
|
|
28
|
|
56
|
|
21
|
|
922
|
|
Depreciation and
amortization
|
1,238
|
|
509
|
|
39
|
|
401
|
|
47
|
|
242
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
46,823
|
|
37,734
|
|
-
|
|
-
|
|
9,089
|
|
-
|
|
Total operating
expenses
|
136,590
|
|
71,414
|
|
5,917
|
|
13,772
|
|
34,787
|
|
10,700
|
|
Operating (loss) income
|
(26,197)
|
|
(31,698)
|
|
4,330
|
|
6,626
|
|
5,903
|
|
(11,358)
|
|
INTEREST
INCOME
|
1,088
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,088
|
|
INTEREST
EXPENSE
|
11,649
|
|
58
|
|
-
|
|
-
|
|
-
|
|
11,591
|
|
GAIN ON RETIREMENT OF
DEBT
|
(3,472)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,472)
|
|
OTHER INCOME (LOSS),
net
|
74
|
|
(12)
|
|
-
|
|
-
|
|
-
|
|
86
|
|
(Loss) income before
income from consolidated operations before (benefit from) provision
for income taxes
|
(33,212)
|
|
(31,768)
|
|
4,330
|
|
6,626
|
|
5,903
|
|
(18,303)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
(1,814)
|
|
(2,344)
|
|
941
|
|
380
|
|
1,218
|
|
(2,009)
|
|
NET (LOSS)
INCOME
|
(31,398)
|
|
(29,424)
|
|
3,389
|
|
6,246
|
|
4,685
|
|
(16,294)
|
|
NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING INTERESTS
|
400
|
|
-
|
|
-
|
|
-
|
|
-
|
|
400
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$ (31,798)
|
|
$ (29,424)
|
|
$
3,389
|
|
$
6,246
|
|
$
4,685
|
|
$ (16,694)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
25,414
|
|
$
8,030
|
|
$
3,655
|
|
$
6,363
|
|
$
15,060
|
|
$
(7,695)
|
|
Three Months Ended
September 30, 2023
|
|
(in thousands,
unaudited)
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
All Other -
Corporate/
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 goodwill,
intangible assets, and 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
|
|
OTHER INCOME,
net
|
75
|
|
60
|
|
-
|
|
-
|
|
-
|
|
15
|
|
(Loss) income before
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 NON-CONTROLLING INTERESTS
|
697
|
|
-
|
|
-
|
|
-
|
|
-
|
|
697
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$ (54,411)
|
|
$ (60,301)
|
|
$
2,841
|
|
$
6,917
|
|
$
19,627
|
|
$ (23,495)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
34,650
|
|
$
8,583
|
|
$
3,420
|
|
$
7,356
|
|
$
22,239
|
|
$
(6,948)
|
|
Nine Months Ended
September 30, 2024
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
All Other -
Corporate/
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$ 332,547
|
|
$ 118,066
|
|
$
37,648
|
|
$
50,252
|
|
$ 128,412
|
|
$
(1,831)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
99,826
|
|
34,543
|
|
10,824
|
|
10,504
|
|
44,690
|
|
(735)
|
|
Selling, general and
administrative
|
131,141
|
|
59,410
|
|
14,855
|
|
26,729
|
|
31,511
|
|
(1,364)
|
|
Corporate selling,
general and administrative
|
38,033
|
|
-
|
|
2,078
|
|
10
|
|
5,128
|
|
30,817
|
|
Stock-based
compensation
|
3,615
|
|
362
|
|
78
|
|
138
|
|
811
|
|
2,226
|
|
Depreciation and
amortization
|
6,081
|
|
3,470
|
|
121
|
|
1,215
|
|
348
|
|
927
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
127,581
|
|
118,492
|
|
-
|
|
-
|
|
9,089
|
|
-
|
|
Total operating
expenses
|
406,277
|
|
216,277
|
|
27,956
|
|
38,596
|
|
91,577
|
|
31,871
|
|
Operating (loss) income
|
(73,730)
|
|
(98,211)
|
|
9,692
|
|
11,656
|
|
36,835
|
|
(33,702)
|
|
INTEREST
INCOME
|
4,863
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,863
|
|
INTEREST
EXPENSE
|
37,051
|
|
175
|
|
-
|
|
-
|
|
-
|
|
36,876
|
|
GAIN ON RETIREMENT OF
DEBT
|
(18,771)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(18,771)
|
|
OTHER INCOME (LOSS),
net
|
974
|
|
(11)
|
|
-
|
|
-
|
|
-
|
|
985
|
|
(Loss) income before
income from consolidated operations before (benefit from) provision
for income taxes
|
(86,173)
|
|
(98,397)
|
|
9,692
|
|
11,656
|
|
36,835
|
|
(45,959)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
(17,824)
|
|
(22,423)
|
|
2,114
|
|
(843)
|
|
8,082
|
|
(4,754)
|
|
Net (loss) income from
consolidated operations
|
(68,349)
|
|
(75,974)
|
|
7,578
|
|
12,499
|
|
28,753
|
|
(41,205)
|
|
LOSS FROM
UNCONSOLIDATED JOINT VENTURE, net of tax
|
(411)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(411)
|
|
NET (LOSS)
INCOME
|
(68,760)
|
|
(75,974)
|
|
7,578
|
|
12,499
|
|
28,753
|
|
(41,616)
|
|
NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING INTERESTS
|
$
976
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
976
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(69,736)
|
|
$
(75,974)
|
|
$
7,578
|
|
$
12,499
|
|
$
28,753
|
|
$
(42,592)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
76,593
|
|
$
25,300
|
|
$
9,148
|
|
$
12,289
|
|
$
47,172
|
|
$ (17,316)
|
|
Nine Months Ended
September 30, 2023
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Radio
Broadcasting
|
|
Reach
Media
|
|
Digital
|
|
Cable
Television
|
|
All Other -
Corporate/
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 goodwill,
intangible assets, and 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 income (loss) 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 NON-CONTROLLING 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
|
$ 103,874
|
|
$
27,601
|
|
$
11,479
|
|
$
17,275
|
|
$
66,922
|
|
$
(19,402)
|
Urban One, Inc. will hold a conference call to discuss its
results for the third fiscal quarter of 2024. The conference call
is scheduled for Tuesday, November 12,
2024 at 10:00 a.m. EST. 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 5487822.
A replay of the conference call will be available from
1:00 p.m. EST November 12, 2024 until 12:00 a.m. EST November
19, 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 3607803.
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 November 12, 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.
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, 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.
|
|
|
|
2
|
"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, loss from ceased non-core business
initiatives 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.
|
|
|
|
3
|
For the three months
ended September 30, 2024 and 2023, Urban One had 47,105,290 and
47,722,263 shares of common stock outstanding on a weighted average
basis (basic), respectively. For the nine months ended September
30, 2024 and 2023, Urban One had 48,614,438 and 47,592,010 shares
of common stock outstanding on a weighted average basis (basic),
respectively.
|
|
|
|
4
|
For the three months
ended September 30, 2024 and 2023, Urban One had 47,105,290
and 47,722,263 shares of common stock outstanding on a weighted
average basis (fully diluted for outstanding stock awards),
respectively. For the nine months ended September 30, 2024 and
2023, Urban One had 48,614,438 and 50,358,881 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.