URBAN ONE, INC. REPORTS FIRST AND SECOND QUARTER 2023 RESULTS
WASHINGTON, Dec. 7, 2023 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for both the quarter ended March 31, 2023 and the quarter ended June 30, 2023 as well as for the six month period ended June 30, 2023. For the six month period ended June 30, 2023 net revenue was approximately $239.5 million, an increase of 3.8% from the same period in 2022. The Company reported operating income of approximately $17.8 million for the six months ended June 30, 2023, compared to approximately $61.8 million for the six months ended June 30, 2022. Broadcast and digital operating income1 was approximately $86.6 million, a decrease of 16.3% from the same period in 2022. Net income was approximately $67.4 million or $1.42 per share (basic) compared to $32.8 million or $0.64 per share (basic) for the same period in 2022. Adjusted EBITDA2 was approximately $67.8 million for the six months ended June 30, 2023, compared to approximately $89.5 million for the same period in 2022.
Alfred C. Liggins, III, Urban One's CEO and President stated, "This is our first earnings release since the sale of our MGM National Harbor investment for $136.8 million, and the impact can be seen in both our improved cash balance and the reduction of Adjusted EBITDA. On a same station basis our core radio revenue for the six months, excluding political, was up approximately 1.0%. The additional Indianapolis stations, which we acquired in September 2022, pushed core radio revenues up approximately 10.9%, however margins were down slightly at 26% vs 28% for the first half of 2022. The second half of 2023 will be more heavily affected by the political revenue comps for 2022, and also we are seeing some softening in the radio advertising market generally. In Q1 2023 our cable TV division suffered some ratings and delivery shortfalls, which led to increased audience deficiency units and thus a reduction in advertising revenues. Our ratings have recovered as the year has progressed, and advertising revenues for second and third quarters have been more stable. The linear television business is continuing to experience high rates of subscriber churn, in the high-single-digit percentage range, which we expect to continue for the rest of 2023. The return of Tom Joyner's Fantastic Voyage in Q2 helped boost revenues at Reach Media, and also led to a corresponding increase in SG&A expenses, producing a net contribution of $1.75 million. Digital revenues for the six months increased by approximately 1.8%, but margins were impacted by additional traffic acquisition and content costs. We feel comfortable re-affirming our prior guidance of Adjusted EBITDA in the range $125-128 million."
RESULTS OF OPERATIONS | |||||||||||||
Three Months Ended March 31 | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||
STATEMENT OF OPERATIONS | (unaudited) | (unaudited) | (unaudited) | ||||||||||
(in thousands, except share data) | (in thousands, except share data) | (in thousands, except share data) | |||||||||||
NET REVENUE | $ 109,869 | $ 112,131 | $ 129,652 | $ 118,657 | $ 239,521 | $ 230,788 | |||||||
OPERATING EXPENSES | |||||||||||||
Programming and technical, excluding stock-based compensation | 33,854 | 28,518 | 32,547 | 28,351 | 66,401 | 56,869 | |||||||
Selling, general and administrative, excluding stock-based compensation | 36,715 | 35,210 | 49,777 | 35,193 | 86,492 | 70,403 | |||||||
Corporate selling, general and administrative, excluding stock-based | 8,530 | 9,413 | 11,385 | 12,016 | 19,915 | 21,429 | |||||||
Stock-based compensation | 3,278 | 124 | 2,321 | 336 | 5,598 | 460 | |||||||
Depreciation and amortization | 2,597 | 2,405 | 1,886 | 2,481 | 4,483 | 4,886 | |||||||
Impairment of goodwill, intangible assets, and long-lived assets | 16,775 | - | 22,081 | 14,905 | 38,856 | 14,905 | |||||||
Total operating expenses | 101,749 | 75,670 | 119,997 | 93,282 | 221,745 | 168,952 | |||||||
Operating income | 8,120 | 36,461 | 9,655 | 25,375 | 17,776 $ | 61,836 $ | |||||||
INTEREST INCOME | 333 | 59 | 1,898 | - | 2,232 | 59 | |||||||
INTEREST EXPENSE | 14,068 | 15,927 | 13,972 | 15,886 | 28,040 | 31,813 | |||||||
GAIN ON RETIREMENT OF DEBT | 2,356 | - | - | 1,855 | 2,356 | 1,855 | |||||||
OTHER (EXPENSE) INCOME, NET | (312) | 1,986 | 96,773 | 9,725 | 96,460 | 11,711 | |||||||
(Loss) income before (benefit from) provision for | (3,571) | 22,579 | 94,354 | 21,069 | 90,784 | 43,648 | |||||||
(Benefit from) provision for income taxes | (1,160) | 5,465 | 23,197 | 4,125 | 22,037 | 9,590 | |||||||
NET (LOSS) INCOME | (2,411) | 17,114 | 71,157 | 16,944 | 68,747 | 34,058 | |||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 511 | 626 | 791 | 650 | 1,303 | 1,276 | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON | $ (2,922) | $ 16,488 | $ 70,366 | $ 16,294 | $ 67,444 | $ 32,782 | |||||||
AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS | |||||||||||||
NET INCOME FROM CONTINUING OPERATIONS | $ (2,922) | $ 16,488 | $ 70,366 | $ 16,294 | $ 67,444 | $ 32,782 | |||||||
INCOME FROM DISCONTINUED OPERATIONS, net of tax | - | - | - | - | - | - | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON | $ (2,922) | $ 16,488 | $ 70,366 | $ 16,294 | $ 67,444 | $ 32,782 | |||||||
Weighted average shares outstanding - basic3 | 47,420,832 | 51,182,831 | 47,629,163 | 50,806,346 | 47,514,722 | 50,994,612 | |||||||
Weighted average shares outstanding - diluted4 | 47,420,832 | 55,097,781 | 50,616,435 | 54,658,543 | 50,373,714 | 54,871,963 | |||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||
PER SHARE DATA - basic and diluted: | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||
(in thousands, except per share data) | (in thousands, except per share data) | (in thousands, except per share data) | |||||||||
Net (loss) income attributable to common stockholders (basic) | $ (0.06) | $ 0.32 | $ 1.48 | $ 0.32 | $ 1.42 | $ 0.64 | |||||
Net (loss) income attributable to common stockholders (diluted) | $ (0.06) | $ 0.30 | $ 1.39 | $ 0.30 | $ 1.34 | $ 0.60 | |||||
SELECTED OTHER DATA | |||||||||||
Broadcast and digital operating income 1 | $ 39,300 | $ 48,403 | $ 47,328 | $ 55,113 | $ 86,628 | $ 103,516 | |||||
Broadcast and digital operating income reconciliation: | |||||||||||
Net (loss) income attributable to common stockholders | $ (2,922) | $ 16,488 | $ 70,366 | $ 16,294 | $ 67,444 | $ 32,782 | |||||
Add back non-broadcast and digital operating income items included in net income: | |||||||||||
Interest income | $ (333) | (59) | (1,898) | - | (2,232) | (59) | |||||
Interest expense | $ 14,068 | 15,927 | 13,972 | 15,886 | 28,040 | 31,813 | |||||
(Benefit from) provision for income taxes | $ (1,160) | 5,465 | 23,197 | 4,125 | 22,037 | 9,590 | |||||
Corporate selling, general and administrative expenses | $ 8,530 | 9,413 | 11,385 | 12,016 | 19,915 | 21,429 | |||||
Stock-based compensation | $ 3,278 | 124 | 2,321 | 336 | 5,598 | 460 | |||||
Gain on retirement of debt | $ (2,356) | - | - | (1,855) | (2,356) | (1,855) | |||||
Other income, net | $ 312 | (1,986) | (96,773) | (9,725) | (96,460) | (11,711) | |||||
Depreciation and amortization | $ 2,597 | 2,405 | 1,886 | 2,481 | 4,483 | 4,886 | |||||
Noncontrolling interest in income of subsidiaries | $ 511 | 626 | 791 | 650 | 1,303 | 1,276 | |||||
Impairment of long-lived assets | $ 16,775 | - | 22,081 | 14,905 | 38,856 | 14,905 | |||||
Broadcast and digital operating income | $ 39,300 | $ 48,403 | $ 47,328 | $ 55,113 | $ 86,628 | $ 103,516 | |||||
Adjusted EBITDA2 | $ 30,285 | $ 42,004 | $ 37,504 | $ 47,507 | $ 67,790 | $ 89,512 | |||||
Adjusted EBITDA reconciliation: | |||||||||||
Net (loss) income attributable to common stockholders | $ (2,922) | $ 16,488 | $ 70,366 | $ 16,294 | $ 67,444 | $ 32,782 | |||||
Interest income | (333) | (59) | (1,898) | - | (2,232) | (59) | |||||
Interest expense | 14,068 | 15,927 | 13,972 | 15,886 | 28,040 | 31,813 | |||||
(Benefit from) provision for income taxes | (1,160) | 5,465 | 23,197 | 4,125 | 22,037 | 9,590 | |||||
Depreciation and amortization | 2,597 | 2,405 | 1,886 | 2,481 | 4,483 | 4,886 | |||||
EBITDA | $ 12,250 | $ 40,226 | $ 107,523 | $ 38,786 | $ 119,772 | $ 79,012 | |||||
Stock-based compensation | 3,278 | 124 | 2,321 | 336 | 5,598 | 460 | |||||
Gain on retirement of debt | (2,356) | - | - | (1,855) | (2,356) | (1,855) | |||||
Other income, net | 312 | (1,986) | (96,773) | (9,725) | (96,460) | (11,711) | |||||
Noncontrolling interest in income of subsidiaries | 511 | 626 | 791 | 650 | 1,303 | 1,276 | |||||
Corporate development costs | (376) | 334 | 3,099 | 1,250 | 2,723 | 1,584 | |||||
Employment Agreement Award and other compensation | (144) | 580 | (1,674) | 903 | (1,818) | 1,482 | |||||
Severance-related costs | 150 | 133 | 136 | 109 | 287 | 242 | |||||
Investment (expense) income from MGM National Harbor | (115) | 1,967 | - | 2,148 | (115) | 4,117 | |||||
Impairment of goodwill, intangible assets, and long-lived assets | 16,775 | - | 22,081 | 14,905 | 38,856 | 14,905 | |||||
Adjusted EBITDA | $ 30,285 | $ 42,004 | $ 37,504 | $ 47,507 | $ 67,790 | $ 89,512 | |||||
June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||
(unaudited) | ||||||
(in thousands) | ||||||
SELECTED BALANCE SHEET DATA: | ||||||
Cash and cash equivalents and restricted cash | $ 231,208 | $ 71,931 | 101,879 $ | |||
Intangible assets, net | 715,286 | 738,896 | 765,191 | |||
Available-for-sale securities - at fair value | - | 136,826 | 136,826 | |||
Total assets | 1,279,847 | 1,284,471 | 1,344,646 | |||
Total debt (including current portion, net of issuance costs) | 715,204 | 714,780 | 739,000 | |||
Total liabilities | 924,028 | 927,778 | 981,973 | |||
Total stockholders' equity | 331,531 | 331,577 | 330,750 | |||
Redeemable noncontrolling interests | 24,288 | 25,116 | 31,923 | |||
June 30, 2023 | March 31, 2023 | December 31, 2022 | Applicable Interest | |||||
(in thousands) | ||||||||
SELECTED LEVERAGE DATA: | ||||||||
7.375% senior secured notes due February 2028, net of issuance costs of | $ 715,204 | $ 714,780 | 739,000 | 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 six months ended June 30, 2023, we recognized approximately $239.5 million in net revenue compared to approximately $230.8 million during the six months ended June 30, 2022. We recognized approximately $74.4 million of revenue from our radio broadcasting segment during the six months ended June 30, 2023, compared to approximately $68.7 million for the six months ended June 30, 2022, an increase of approximately $5.7 million, primarily due to the acquisition of three stations in the second half of 2022 in the Indianapolis market and revenue growth in the Atlanta market. Based on reports prepared by Miller Kaplan, the markets we operate in decreased 3.4% in total revenues. Net revenue from our radio broadcasting segment, excluding political advertising, during the six months ended June 30, 2023 increased 10.9% compared to the six months ended June 30, 2022. We recognized approximately $31.0 million of revenue from our Reach Media segment during the six months ended June 30, 2023, compared to approximately $21.1 million for the six months ended June 30, 2022, an increase of approximately $9.9 million. The increase was primarily driven by the addition of the Fantastic Voyage cruise during the second quarter of 2023. We recognized approximately $34.0 million of revenue from our digital segment during the six months ended June 30, 2023, compared to $33.4 million during the six months ended June 30, 2022, an increase of approximately $0.6 million. The increase was primarily driven by higher local radio digital revenues including the acquired Indianapolis stations. We recognized approximately $102.1 million of revenue from our cable television segment during the six months ended June 30, 2023, compared to $109.5 million during the six months ended June 30, 2022, a decrease of approximately $7.4 million. The decrease was primarily driven by lower ratings and decreased advertising sales and affiliate fees.
The following chart indicates the sources of our net revenue for the three months ended March 31, 2023 and 2022, June 30, 2023 and 2022 and for the six months ended June 30, 2023 and 2022:
Three Months Ended March 31, | Three Months Ended June 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | 2023 | 2022 | $ Change | % Change | |||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Net Revenue: | ||||||||||||||||||||||||
Radio Advertising | $ | 43,108 | $ | 39,127 | $ | 3,981 | 10.2 % | $ | 45,135 | $ | 44,067 | $ | 1,068 | 2.4 % | ||||||||||
Political Advertising | 296 | 532 | (236) | -44.4 % | 410 | 1,686 | (1,276) | -75.7 % | ||||||||||||||||
Digital Advertising | 15,024 | 15,482 | (458) | -3.0 % | 18,861 | 17,881 | 980 | 5.5 % | ||||||||||||||||
Cable Television Advertising | 25,822 | 30,414 | (4,592) | -15.1 % | 30,247 | 29,120 | 1,127 | 3.9 % | ||||||||||||||||
Cable Television Affiliate Fees | 23,837 | 25,752 | (1,915) | -7.4 % | 22,184 | 24,165 | (1,981) | -8.2 % | ||||||||||||||||
Event Revenues & Other | 1,782 | 824 | 958 | 116.3 % | 12,815 | 1,738 | 11,077 | 637.3 % | ||||||||||||||||
Net Revenue | $ | 109,869 | $ | 112,131 | $ | (2,262) | -2.0 % | $ | 129,652 | $ | 118,657 | $ | 10,995 | 9.3 % | ||||||||||
Six Months Ended June 30, | ||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||
(Unaudited) | ||||||||||||
(in thousands) | ||||||||||||
Net Revenue: | ||||||||||||
Radio Advertising | $ | 88,242 | $ | 83,817 | $ | 4,425 | 5.3 % | |||||
Political Advertising | 658 | 2,199 | (1,541) | -70.1 % | ||||||||
Digital Advertising | 33,932 | 33,363 | 569 | 1.7 % | ||||||||
Cable Television Advertising | 56,069 | 59,535 | (3,466) | -5.8 % | ||||||||
Cable Television Affiliate Fees | 46,020 | 49,917 | (3,897) | -7.8 % | ||||||||
Event Revenues & Other | 14,600 | 1,957 | 12,643 | 646.0 % | ||||||||
Net Revenue | $ | 239,521 | $ | 230,788 | $ | 8,733 | 3.8 % | |||||
Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $172.8 million for the six months period ended June 30, 2023, up 16.2% from the approximately $148.7 million incurred for the comparable period in 2022. The overall operating expense increase was driven by higher programming and technical expenses and higher selling, general and administrative expenses, partially offset by lower corporate selling, general and administrative expenses. There was an increase of approximately $8.2 million related to Reach's cruise event, $1.2 million in other radio event expenses, $4.6 million in cable tv content amortization, $5.0 million in employee compensation expenses, $3.8 million in contract labor, talent costs and consulting fees, $2.7 million in corporate professional fees, $2.2 million in variable expenses and $1.0 million in travel, entertainment, marketing and office expenses. These increased expenses were partially offset by a decrease of approximately $3.3 million in Employment Agreement award expenses and a decrease of $1.6 million for corporate business development costs. About $5.9 million of increased expense for the Indianapolis radio acquisition is included in these totals.
Depreciation and amortization expense was approximately $4.5 million for the six months ended June 30, 2023, compared to approximately $4.9 million for the six months ended June 30, 2022, a decrease of approximately $0.4 million. This decrease is due to capitalized assets becoming fully depreciated.
Impairment of goodwill, intangible assets and long-lived assets was approximately $38.9 million during the six months ended June 30, 2023 compared to $15.0 million for the six months ended June 30, 2022, an increase of approximately $23.9 million. The Company recognized a non-cash impairment charge of approximately $16.8 million associated with the sale of the KROI-FM radio broadcasting license during the quarter ended March 31, 2023 and during the quarter ended June 30, 2023, the Company recorded a non-cash impairment charge of approximately $22.1 million for its radio broadcasting licenses primarily in its Philadelphia market.
Interest expense decreased to approximately $28.0 million for the six months ended June 30, 2023, compared to approximately $31.8 million for the six months ended June 30, 2022, a decrease of approximately $3.8 million. The decrease is due to lower overall debt balances outstanding. During the six months ended June 30, 2023, the Company repurchased approximately $25.0 million of its 2028 Notes at an average price of approximately 89.1% of par, resulting in a net gain on retirement of debt of approximately $2.4 million.
Other income, net, was approximately $96.5 million and $11.7 million for the six months ended June 30, 2023 and 2022, respectively. The increase was primarily due to the gain on sale of the Company's investment in MGM of approximately $96.8 million. During the six months ended June 30, 2022, the Company recognized income related to the MGM investment as well as the PPP Loan and related accrued interest that was forgiven.
For the six months ended June 30, 2023, we recorded a provision for income taxes of approximately $22.0 million. This amount is based on the actual effective tax rate of 24.3%. The difference between the effective rate and the Company's statutory rate relates primarily to the effect of state taxes and permanent differences associated with non-deductible officer compensation. The Company also recorded approximately $23.9 million of discrete tax expense related to the gain on sale our MGM investment. For the six months ended June 30, 2022, we recorded a provision for income taxes of approximately $9.6 million. This amount is based on the actual effective tax rate of 22.0%, which includes 3.5% state income tax, 1.3% related to non-deductible goodwill impairment, 1.1% related to officer's compensation, 0.2% other permanently non-deductible expenses. The Company also recorded approximately $2.1 million of discrete tax benefits primarily related to non-taxable income forgiveness of the PPP Loan. The Company paid income taxes of approximately $1.3 million and $698,000 for the six months ended June 30, 2023 and 2022, respectively.
Other pertinent financial information includes capital expenditures of approximately $4.1 million and $3.9 million for the six months ended June 30, 2023 and 2022, respectively.
During the six months ended June 30, 2023, the Company did not repurchase any shares of Class A common stock and repurchased 274,901 shares of Class D common stock in the amount of approximately $1.4 million. During the six months ended June 30, 2022, the Company did not repurchase any shares of Class A common stock and repurchased 4,687,068 shares of Class D common stock in the amount of approximately $24.7 million.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited statements of operations for the three months ended March 31, 2023 and 2022 and June 30, 2023 and 2022 and the six months ended June 30, 2023 and 2022 are included.
Three Months Ended March 31, 2023 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 109,869 | $ | 35,180 | $ | 10,917 | $ | 15,071 | $ | 49,677 | $ | (976) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 33,854 | 10,331 | 4,032 | 3,434 | 16,440 | (383) | |||||||||
Selling, general and administrative | 36,715 | 15,942 | 2,718 | 7,876 | 10,817 | (638) | |||||||||
Corporate selling, general and administrative | 8,530 | - | 718 | 0 | 1,798 | 6,014 | |||||||||
Stock-based compensation | 3,278 | 176 | 268 | 40 | 328 | 2,466 | |||||||||
Depreciation and amortization | 2,597 | 917 | 40 | 337 | 965 | 338 | |||||||||
Impairment of goodwill, intangible assets, and long-lived assets | 16,775 | 16,775 | - | - | - | - | |||||||||
Total operating expenses | 101,749 | 44,140 | 7,776 | 11,687 | 30,348 | 7,798 | |||||||||
Operating income (loss) | 8,120 | (8,960) | 3,141 | 3,384 | 19,329 | (8,774) | |||||||||
INTEREST INCOME | 333 | - | - | - | - | 333 | |||||||||
INTEREST EXPENSE | 14,068 | 56 | - | - | 1,919 | 12,094 | |||||||||
GAIN ON SALE OF ASSETS | - | - | - | - | - | - | |||||||||
GAIN ON RETIREMENT OF DEBT | 2,356 | - | - | - | - | 2,356 | |||||||||
OTHER (EXPENSE), net | (312) | - | - | - | - | (312) | |||||||||
Income (loss) before (benefit from) provision for income taxes and | (3,571) | (9,015) | 3,141 | 3,384 | 17,410 | (18,490) | |||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | (1,160) | (1,759) | 744 | - | 4,586 | (4,730) | |||||||||
Net (loss) income from continuing operations | (2,411) | (7,256) | 2,397 | 3,384 | 12,825 | (13,760) | |||||||||
INCOME FROM DISCONTINUED OPERATIONS, net of tax | - | - | - | - | - | - | |||||||||
NET (LOSS) INCOME | (2,411) | (7,256) | 2,397 | 3,384 | 12,825 | (13,760) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 511 | - | - | - | - | 511 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (2,922) | $ | (7,256) | $ | 2,397 | $ | 3,384 | $ | 12,825 | $ | (14,271) | |||
Adjusted EBITDA2 | $ | 30,285 | $ | 9,022 | $ | 3,458 | $ | 3,761 | $ | 20,622 | $ | (6,577) | |||
Three Months Ended March 31, 2022 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 112,131 | $ | 31,493 | $ | 10,030 | $ | 15,486 | $ | 56,216 | $ | (1,094) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 28,518 | 8,876 | 3,413 | 3,270 | 13,341 | (382) | |||||||||
Selling, general and administrative | 35,210 | 14,742 | 2,106 | 7,593 | 11,481 | (712) | |||||||||
Corporate selling, general and administrative | 9,413 | - | 678 | 1 | 1,068 | 7,666 | |||||||||
Stock-based compensation | 124 | - | - | - | 39 | 85 | |||||||||
Depreciation and amortization | 2,405 | 815 | 47 | 333 | 946 | 264 | |||||||||
Impairment of goodwill, intangible assets, and long-lived assets | - | - | - | - | - | - | |||||||||
Total operating expenses | 75,670 | 24,433 | 6,244 | 11,197 | 26,875 | 6,921 | |||||||||
Operating income (loss) | 36,461 | 7,060 | 3,786 | 4,289 | 29,341 | (8,015) | |||||||||
INTEREST INCOME | 59 | - | - | - | - | 59 | |||||||||
INTEREST EXPENSE | 15,927 | 50 | - | 79 | 1,919 | 13,879 | |||||||||
GAIN ON SALE OF ASSETS | - | - | - | - | - | - | |||||||||
GAIN ON RETIREMENT OF DEBT | - | - | - | - | - | - | |||||||||
OTHER INCOME, net | 1,986 | 5 | - | - | - | 1,981 | |||||||||
Income (loss) before (benefit from) provision for income taxes and | 22,579 | 7,015 | 3,786 | 4,210 | 27,422 | (19,854) | |||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 5,465 | 1,723 | 932 | - | 6,747 | (3,937) | |||||||||
Net (loss) income from continuing operations | 17,114 | 5,292 | 2,854 | 4,210 | 20,675 | (15,917) | |||||||||
INCOME FROM DISCONTINUED OPERATIONS, net of tax | - | - | - | - | - | - | |||||||||
NET (LOSS) INCOME | 17,114 | 5,292 | 2,854 | 4,210 | 20,675 | (15,917) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 626 | - | - | - | - | 626 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 16,488 | $ | 5,292 | $ | 2,854 | $ | 4,210 | $ | 20,675 | $ | (16,543) | |||
Adjusted EBITDA2 | $ | 42,004 | $ | 7,895 | $ | 3,833 | $ | 4,627 | $ | 30,326 | $ | (4,677) | |||
Three Months Ended June 30, 2023 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 129,652 | $ | 39,196 | $ | 20,052 | $ | 18,908 | $ | 52,430 | $ | (934) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 32,547 | 10,525 | 3,974 | 3,513 | 14,919 | (383) | |||||||||
Selling, general and administrative | 49,777 | 18,786 | 10,857 | 9,264 | 11,602 | (732) | |||||||||
Corporate selling, general and administrative | 11,385 | - | 619 | - | 1,849 | 8,917 | |||||||||
Stock-based compensation | 2,321 | 114 | 174 | 40 | 231 | 1,761 | |||||||||
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 | 119,996 | 52,393 | 15,664 | 13,182 | 28,852 | 9,905 | |||||||||
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 | 13,277 | |||||||||
GAIN ON SALE OF ASSETS | - | - | - | - | - | - | |||||||||
GAIN ON RETIREMENT OF DEBT | - | - | - | - | - | - | |||||||||
OTHER INCOME (EXPENSE), net | 96,773 | (67) | - | - | - | 96,840 | |||||||||
Income (loss) before (benefit from) provision for income taxes and | 94,355 | (13,319) | 4,388 | 5,726 | 22,938 | 74,621 | |||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 23,197 | (5,160) | 1,289 | - | 6,633 | 20,435 | |||||||||
Net (loss) income from continuing operations | 71,158 | (8,159) | 3,099 | 5,726 | 16,305 | 54,187 | |||||||||
INCOME FROM DISCONTINUED OPERATIONS, net of tax | - | - | - | - | - | - | |||||||||
NET (LOSS) INCOME | 71,158 | (8,159) | 3,099 | 5,726 | 16,305 | 54,187 | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 791 | - | - | - | - | 791 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 70,366 | $ | (8,159) | $ | 3,099 | $ | 5,726 | $ | 16,305 | $ | 53,395 | |||
Adjusted EBITDA2 | $ | 37,503 | $ | 9,995 | $ | 4,602 | $ | 6,157 | $ | 24,060 | $ | (7,312) | |||
Three Months Ended June 30, 2022 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 118,657 | $ | 37,192 | $ | 11,093 | $ | 17,881 | $ | 53,296 | $ | (805) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 28,351 | 9,120 | 3,727 | 3,307 | 12,579 | (382) | |||||||||
Selling, general and administrative | 35,193 | 16,418 | 1,916 | 6,904 | 10,377 | (422) | |||||||||
Corporate selling, general and administrative | 12,016 | - | 636 | 6 | 2,156 | 9,218 | |||||||||
Stock-based compensation | 336 | (0) | - | - | 286 | 49.61 | |||||||||
Depreciation and amortization | 2,481 | 825 | 46 | 332 | 952 | 326 | |||||||||
Impairment of goodwill, intangible assets, and long-lived assets | 14,905 | 14,905 | - | - | - | - | |||||||||
Total operating expenses | 93,282 | 41,268 | 6,325 | 10,549 | 26,350 | 8,790 | |||||||||
Operating income (loss) | 25,375 | (4,076) | 4,768 | 7,331 | 26,946 | (9,595) | |||||||||
INTEREST INCOME | - | - | - | - | - | - | |||||||||
INTEREST EXPENSE | 15,886 | 50 | - | 79 | 1,919 | 13,838 | |||||||||
GAIN ON SALE OF ASSETS | 1,855 | - | - | - | - | 1,855 | |||||||||
GAIN ON RETIREMENT OF DEBT | - | - | - | - | - | - | |||||||||
OTHER INCOME (EXPENSE), net | 9,725 | (13) | - | - | - | 9,738 | |||||||||
Income (loss) before (benefit from) provision for income taxes and | 21,069 | (4,139) | 4,768 | 7,253 | 25,027 | (11,840) | |||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 4,125 | (6,492) | 1,368 | - | 7,355 | 1,894 | |||||||||
Net (loss) income from continuing operations | 16,944 | 2,353 | 3,400 | 7,253 | 17,672 | (13,734) | |||||||||
INCOME FROM DISCONTINUED OPERATIONS, net of tax | - | - | - | - | - | - | |||||||||
NET (LOSS) INCOME | 16,944 | 2,353 | 3,400 | 7,253 | 17,672 | (13,734) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 650 | - | - | - | - | 650 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 16,294 | $ | 2,353 | $ | 3,400 | $ | 7,253 | $ | 17,672 | $ | (14,384) | |||
Adjusted EBITDA2 | $ | 47,507 | $ | 11,672 | $ | 4,815 | $ | 7,664 | $ | 28,185 | $ | (4,829) | |||
Six Months Ended June 30, 2023 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 239,521 | $ | 74,376 | $ | 30,968 | $ | 33,979 | $ | 102,108 | $ | (1,910) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 66,401 | 20,855 | 8,006 | 6,947 | 31,359 | (766) | |||||||||
Selling, general and administrative | 86,492 | 34,727 | 13,575 | 17,140 | 22,420 | (1,370) | |||||||||
Corporate selling, general and administrative | 19,915 | - | 1,337 | 1 | 3,647 | 14,930 | |||||||||
Stock-based compensation | 5,598 | 289 | 443 | 80 | 559 | 4,227 | |||||||||
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 | 96,532 | 23,440 | 24,869 | 59,201 | 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 SALE OF ASSETS | - | - | - | - | - | - | |||||||||
GAIN ON RETIREMENT OF DEBT | 2,356 | - | - | - | - | 2,356 | |||||||||
OTHER INCOME (EXPENSE), net | 96,460 | (67) | - | - | - | 96,527 | |||||||||
Income (loss) before (benefit from) provision for income taxes and | 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 (loss) income from continuing operations | 68,748 | (15,416) | 5,495 | 9,110 | 29,130 | 40,428 | |||||||||
INCOME FROM DISCONTINUED OPERATIONS, net of tax | - | - | - | - | - | - | |||||||||
NET (LOSS) INCOME | 68,748 | (15,416) | 5,495 | 9,110 | 29,130 | 40,428 | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1,303 | - | - | - | - | 1,303 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 67,444 | $ | (15,416) | $ | 5,495 | $ | 9,110 | $ | 29,130 | $ | 39,124 | |||
Adjusted EBITDA2 | $ | 67,790 | $ | 19,018 | $ | 8,059 | $ | 9,917 | $ | 44,683 | $ | (13,887) | |||
Six Months Ended June 30, 2022 | |||||||||||||||
(in thousands, unaudited) | |||||||||||||||
All Other - | |||||||||||||||
Radio | Reach | Cable | Corporate/ | ||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | ||||||||||
STATEMENT OF OPERATIONS: | |||||||||||||||
NET REVENUE | $ | 230,788 | $ | 68,684 | $ | 21,123 | $ | 33,367 | $ | 109,513 | $ | (1,899) | |||
OPERATING EXPENSES: | |||||||||||||||
Programming and technical | 56,869 | 17,996 | 7,140 | 6,577 | 25,920 | (764) | |||||||||
Selling, general and administrative | 70,403 | 31,160 | 4,022 | 14,497 | 21,859 | (1,135) | |||||||||
Corporate selling, general and administrative | 21,429 | - | 1,314 | 7 | 3,223 | 16,885 | |||||||||
Stock-based compensation | 460 | (0) | - | - | 325 | 135 | |||||||||
Depreciation and amortization | 4,886 | 1,640 | 93 | 665 | 1,899 | 589 | |||||||||
Impairment of goodwill, intangible assets, and long-lived assets | 14,905 | 14,905 | - | - | - | - | |||||||||
Total operating expenses | 168,952 | 65,701 | 12,569 | 21,746 | 53,226 | 15,710 | |||||||||
Operating income (loss) | 61,836 | 2,983 | 8,554 | 11,621 | 56,287 | (17,609) | |||||||||
INTEREST INCOME | 59 | - | - | - | - | 59 | |||||||||
INTEREST EXPENSE | 31,813 | 99 | - | 158 | 3,838 | 27,718 | |||||||||
GAIN ON SALE OF ASSETS | - | - | - | - | - | - | |||||||||
GAIN ON RETIREMENT OF DEBT | 1,855 | - | - | - | - | 1,855 | |||||||||
OTHER INCOME (EXPENSE), net | 11,711 | (8) | - | - | - | 11,719 | |||||||||
Income (loss) before (benefit from) provision for income taxes and | 43,648 | 2,876 | 8,554 | 11,463 | 52,449 | (31,694) | |||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 9,590 | (4,769) | 2,300 | - | 14,102 | (2,043) | |||||||||
Net (loss) income from continuing operations | 34,058 | 7,645 | 6,254 | 11,463 | 38,347 | (29,651) | |||||||||
INCOME FROM DISCONTINUED OPERATIONS, net of tax | - | - | - | - | - | - | |||||||||
NET (LOSS) INCOME | 34,058 | 7,645 | 6,254 | 11,463 | 38,347 | (29,651) | |||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1,276 | - | - | - | - | 1,276 | |||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 32,782 | $ | 7,645 | $ | 6,254 | $ | 11,463 | $ | 38,347 | $ | (30,927) | |||
Adjusted EBITDA2 | $ | 89,512 | $ | 19,569 | $ | 8,647 | $ | 12,291 | $ | 58,511 | $ | (9,506) | |||
Urban One, Inc. will hold a conference call to discuss its results for the first and second fiscal quarters of 2023. The conference call is scheduled for Thursday, December 07, 2023 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-844-721-7241; international callers may dial direct (+1) 409-207-6955. The Access Code is 7824764.
A replay of the conference call will be available from 1:00 p.m. EST December 07, 2023 until 12:00 a.m. EST December 14, 2023. 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 3718185.
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 December 01, 2023, 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:
- "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.
- "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.
- For the three months ended March 31, 2023 and 2022, Urban One had 47,420,832 and 51,182,831 shares of common stock outstanding on a weighted average basis (basic), respectively. For the three months ended June 30, 2023 and 2022, Urban One had 47,629,163 and 50,086,346 shares of common stock outstanding on a weighted average basis (basic), respectively. For the six months ended June 30, 2023 and 2022, Urban One had 47,514,722 and 50,994,612 shares of common stock outstanding on a weighted average basis (basic), respectively.
- For the three months ended March 31, 2023 and 2022, Urban One had 47,420,832 and 55,097,781 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the three months ended June 30, 2023 and 2022, Urban One had 50,616,435 and 54,658,543 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the six months ended June 30, 2023 and 2022, Urban One had 50,373,714 and 54,871,963 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively.
SOURCE Urban One, Inc.
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