URBAN ONE, INC. REPORTS THIRD QUARTER 2023 RESULTS
WASHINGTON, Jan. 11, 2024 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended September 30, 2023. For the quarter ended September 30, 2023 net revenue was approximately $117.8 million, a decrease of 2.8% from the same period in 2022. The Company reported an operating loss of approximately $56.1 million for the quarter ended September 30, 2023, compared to an operating loss of approximately $18.0 million for the quarter ended September 30, 2022. Broadcast and digital operating income1 was approximately $43.8 million, a decrease of 13.9% from the same period in 2022. Net loss was approximately $54.4 million or $1.14 per share (basic) compared to a net income of approximately $3.5 million or $0.07 per share (basic) for the same period in 2022. Adjusted EBITDA2 was approximately $34.1 million for the quarter ended September 30, 2023, compared to approximately $44.3 million for the same period in 2022.
Alfred C. Liggins, III, Urban One's CEO and President stated, "Third quarter came in right on top of our expectations, as discussed on our December 7th Earnings call. The softness in our radio markets continued into Q4, where we expect to be down approximately 14% all-in, down 23% same station and down 13% same station ex-political, which is marginally down on our early December pacings. For Q1 radio, we are currently pacing down low-single-digits on a same station basis. Our Reach Media and Digital businesses performed relatively better in Q3, however subscriber churn in the linear TV business continues to be a headwind for the whole industry. Overall, we expect to finish out the year in line with our prior Adjusted EBITDA guidance of $125-128 million".
RESULTS OF OPERATIONS | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||
STATEMENT OF OPERATIONS | (unaudited) | (unaudited) | |||||||
(in thousands, except share data) | (in thousands, except share data) | ||||||||
(As Restated) | (As Restated) | ||||||||
NET REVENUE | $ 117,825 | $ 121,250 | $ 357,346 | $ 352,038 | |||||
OPERATING EXPENSES | |||||||||
Programming and technical, excluding stock-based compensation | 33,903 | 29,490 | 100,304 | 86,359 | |||||
Selling, general and administrative, excluding stock-based compensation | 40,142 | 40,918 | 126,634 | 111,321 | |||||
Corporate selling, general and administrative, excluding stock-based compensation | 10,418 | 9,777 | 30,333 | 31,206 | |||||
Stock-based compensation | 2,218 | 5,114 | 7,816 | 5,574 | |||||
Depreciation and amortization | 1,808 | 2,505 | 6,291 | 7,391 | |||||
Impairment of long-lived assets | 85,448 | 15,450 | 124,304 | 30,355 | |||||
Total operating expenses | 173,937 | 103,254 | 395,682 | 272,206 | |||||
Operating (loss) income | (56,112) | 17,996 | (38,336) | 79,832 | |||||
INTEREST INCOME | 2,256 | 415 | 4,488 | 474 | |||||
INTEREST EXPENSE | 13,983 | 15,310 | 42,023 | 47,123 | |||||
GAIN ON RETIREMENT OF DEBT | - | 1,837 | 2,356 | 3,692 | |||||
Other income, net | 75 | 2,021 | 96,535 | 13,732 | |||||
(Loss) income before (benefit from) provision for income taxes and noncontrolling | (67,764) | 6,959 | 23,020 | 50,607 | |||||
(BENEFIT FROM) PROVISION FOR INCOME TAXES | (16,778) | 3,213 | 5,259 | 12,803 | |||||
Net (loss) income from consolidated operations | (50,986) | 3,746 | 17,761 | 37,804 | |||||
Loss from unconsolidated joint venture | (2,728) | - | (2,728) | - | |||||
NET (LOSS) INCOME | (53,714) | 3,746 | 17,761 | 37,804 | |||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 697 | 277 | 2,000 | 1,553 | |||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (54,411) | $ 3,469 | $ 15,761 | $ 36,251 | |||||
AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS | |||||||||
NET (LOSS) INCOME FROM CONTINUING OPERATIONS | $ (54,411) | $ 3,469 | $ 15,761 | $ 36,251 | |||||
INCOME FROM DISCONTINUED OPERATIONS, net of tax | (2,728) | - | (2,728) | - | |||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (57,139) | $ 3,469 | $ 13,033 | $ 36,251 | |||||
Weighted average shares outstanding - basic3 | 47,629,163 | 46,625,484 | 47,514,722 | 49,504,238 | |||||
Weighted average shares outstanding - diluted4 | 47,629,163 | 50,206,608 | 50,373,714 | 53,171,793 | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
PER SHARE DATA - basic and diluted: | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||
(in thousands, except per share data) | (in thousands, except per share data) | ||||||
(As Restated) | (As Restated) | ||||||
Net (loss) income attributable to common stockholders (basic) | (1.14) | 0.07 | 0.27 | 0.73 | |||
Net (loss) income attributable to common stockholders (diluted) | (1.14) | 0.07 | 0.26 | 0.68 | |||
SELECTED OTHER DATA | |||||||
Broadcast and digital operating income 1 | $ 43,780 | $ 50,842 | $ 130,408 | $ 154,358 | |||
Broadcast and digital operating income reconciliation: | |||||||
Net (loss) income attributable to common stockholders | $ (54,411) | $ 3,469 | $ 13,033 | $ 36,251 | |||
Add back/(deduct) certain non-broadcast and digital operating income items included in net (loss) income: | |||||||
Interest income | (2,256) | (415) | (4,488) | (474) | |||
Interest expense | 13,983 | 15,310 | 42,023 | 47,123 | |||
(Benefit from) provision for income taxes | (16,778) | 3,213 | 5,259 | 12,803 | |||
Corporate selling, general and administrative expenses | 10,418 | 9,777 | 30,333 | 31,206 | |||
Stock-based compensation | 2,218 | 5,114 | 7,816 | 5,574 | |||
Gain on retirement of debt | - | (1,837) | (2,356) | (3,692) | |||
Other income, net | (75) | (2,021) | (96,535) | (13,732) | |||
Loss from unconsolidated joint venture | 2,728 | - | 2,728 | - | |||
Depreciation and amortization | 1,808 | 2,505 | 6,291 | 7,391 | |||
Noncontrolling interest in income of subsidiaries | 697 | 277 | 2,000 | 1,553 | |||
Impairment of goodwill, intangible assets, and long-lived assets | 85,448 | 15,450 | 124,304 | 30,355 | |||
Broadcast and digital operating income | $ 43,780 | $ 50,842 | $ 130,408 | $ 154,358 | |||
Adjusted EBITDA2 | $ 34,142 | $ 44,341 | $ 101,932 | $ 133,853 | |||
Adjusted EBITDA reconciliation: | |||||||
Net (loss) income attributable to common stockholders | $ (54,411) | $ 3,469 | $ 13,033 | $ 36,251 | |||
Interest income | (2,256) | (415) | (4,488) | (474) | |||
Interest expense | 13,983 | 15,310 | 42,023 | 47,123 | |||
(Benefit from) provision for income taxes | (16,778) | 3,213 | 5,259 | 12,803 | |||
Depreciation and amortization | 1,808 | 2,505 | 6,291 | 7,391 | |||
EBITDA | $ (57,654) | $ 24,082 | $ 62,118 | $ 103,094 | |||
Stock-based compensation | 2,218 | 5,114 | 7,816 | 5,574 | |||
Gain on retirement of debt | - | (1,837) | (2,356) | (3,692) | |||
Other income, net | (75) | (2,021) | (96,535) | (13,732) | |||
Loss from unconsolidated joint venture | 2,728 | - | 2,728 | - | |||
Noncontrolling interest in income of subsidiaries | 697 | 277 | 2,000 | 1,553 | |||
Corporate development costs | 1,594 | 287 | 4,317 | 1,871 | |||
Employment Agreement Award and other compensation | (845) | 714 | (2,663) | 2,196 | |||
Severance-related costs | 31 | 147 | 318 | 388 | |||
Investment income (expense) from MGM National Harbor | - | 2,128 | (115) | 6,246 | |||
Impairment of goodwill, intangible assets, and long-lived assets | 85,448 | 15,450 | 124,304 | 30,355 | |||
Adjusted EBITDA | $ 34,142 | $ 44,341 | $ 101,932 | $ 133,853 | |||
September 30, 2023 | December 31, 2022 | ||||
(unaudited) | |||||
(in thousands) | |||||
SELECTED BALANCE SHEET DATA: | |||||
Cash and cash equivalents and restricted cash | 196,202 | 101,879 | |||
Intangible assets, net | 651,886 | 765,191 | |||
Available-for-sale securities - at fair value | - | 136,826 | |||
Total assets | 1,192,050 | 1,344,646 | |||
Total debt (including current portion, net of issuance costs) | 715,636 | 739,000 | |||
Total liabilities | 891,519 | 981,973 | |||
Total stockholders' equity | 278,707 | 330,750 | |||
Redeemable noncontrolling interests | 21,824 | 31,923 | |||
September 30, 2023 | Applicable Interest Rate | ||||
(in thousands) | |||||
SELECTED LEVERAGE DATA: | |||||
7.375% senior secured notes due February 2028, net of issuance costs of approximately $9.4 million (fixed rate) | $ 715,636 | 7.375 % | |||
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements represent management's current expectations and are based upon information available to Urban One at the time of this release. These forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond Urban One's control, which may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially are described in Urban One's reports on Forms 10-K, 10-K/A, 10-Q, 10-Q/A, 8-K and other filings with the Securities and Exchange Commission (the "SEC"). Urban One does not undertake any duty to update any forward-looking statements.
During the three months ended September 30, 2023, we recognized approximately $117.8 million in net revenue compared to approximately $121.3 million during the three months ended September 30, 2022. These amounts are net of agency and outside sales representative commissions. We recognized approximately $40.2 million of revenue from our radio broadcasting segment during the three months ended September 30, 2023, compared to approximately $40.4 million during the three months ended September 30, 2022, a decrease of approximately $0.2 million. Same station spot, political and event revenue were down year over year but this decline was offset by an increase in revenue resulting from our Houston stations acquisition on August 1, 2023 of approximately $2.9 million and our Indianapolis stations acquisition in the third quarter 2022 of approximately $2.5 million. Based on reports prepared by the independent accounting firm Miller, Kaplan, Arase & Co., LLP ("Miller Kaplan"), the markets we operate in (excluding Richmond and Raleigh, both of which do not participate in Miller Kaplan) decreased 5.9% in total revenues. We recognized approximately $11.2 million of revenue from our Reach Media segment during the three months ended September 30, 2023, compared to approximately $10.1 million for the three months ended September 30, 2022, an increase of approximately $1.1 million The increase was primarily driven by the addition of four new networks and the addition of the U1 podcast network at the end of September 2022. We recognized approximately $20.4 million of revenue from our digital segment during the three months ended September 30, 2023, compared to approximately $21.0 million for the three months ended September 30, 2022, a decrease of approximately $0.6 million. The decrease was primarily driven by a decrease in local markets digital sales. We recognized approximately $46.8 million of revenue from our cable television segment during the three months ended September 30, 2023, compared to approximately $50.6 million for the three months ended September 30, 2022, a decrease of approximately $3.8 million. The decrease was primarily driven by a decrease in advertising sales and the consistent churn in subscribers.
The following chart indicates the sources of our net revenue for the three and nine months ended September 30, 2023:
Three Months Ended September 30, | |||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||
(Unaudited) | |||||||||||||
(in thousands) | |||||||||||||
(As Restated) | |||||||||||||
Net Revenue: | |||||||||||||
Radio Advertising | $ | 46,651 | $ | 45,081 | $ | 1,570 | 3.48 | % | |||||
Political Advertising | 1,101 | 2,766 | (1,665) | -60.20 | % | ||||||||
Digital Advertising | 20,269 | 20,063 | 206 | 1.03 | % | ||||||||
Cable Television Advertising | 25,218 | 26,801 | (1,583) | -5.91 | % | ||||||||
Cable Television Affiliate Fees | 21,569 | 23,770 | (2,201) | -9.26 | % | ||||||||
Event Revenues & Other | 3,017 | 2,769 | 248 | 8.96 | % | ||||||||
Net Revenue (as reported) | $ | 117,825 | $ | 121,250 | $ | (3,425) | -2.8 % | ||||||
Nine Months Ended September 30, | |||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||
(Unaudited) | |||||||||||||
(in thousands) | |||||||||||||
(As Restated) | |||||||||||||
Net Revenue: | |||||||||||||
Radio Advertising | $ | 134,549 | $ | 128,726 | $ | 5,823 | 4.52 | % | |||||
Political Advertising | 1,933 | 5,137 | (3,204) | -62.37 | % | ||||||||
Digital Advertising | 54,027 | 53,427 | 600 | 1.12 | % | ||||||||
Cable Television Advertising | 81,286 | 86,336 | (5,050) | -5.85 | % | ||||||||
Cable Television Affiliate Fees | 67,589 | 73,686 | (6,097) | -8.27 | % | ||||||||
Event Revenues & Other | 17,962 | 4,726 | 13,236 | 280.07 | % | ||||||||
Net Revenue | $ | 357,346 | $ | 352,038 | $ | 5,308 | 1.5 % | ||||||
Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $84.5 million for the quarter ended September 30, 2023, up 5.3% from the approximately $80.2 million incurred for the comparable period in 2022. The overall operating expense increase was driven by higher programming and technical expenses and higher corporate selling, general and administrative expenses offset by slightly lower selling, general and administrative expenses. The increase in programming and technical expenses was due to higher expenses across all segments. Programming and technical expenses in our cable television segment for the three months ended September 30, 2023 increased approximately $1.9 million compared to the three months ended September 30, 2022. The increase was primarily driven by higher content amortization expense which increased approximately $1.7 million for the three months ended September 30, 2023 compared to the three months ended September 30, 2022. Total expenses in our radio broadcasting segment for the three months ended September 30, 2023 increased approximately $3.9 million, compared to the three months ended September 30, 2022. This increase was primarily driven by the Emmis transaction of approximately $2.0 million, the CMG acquisition of approximately $2.2 million offset by reduced costs in events, and sales and marketing costs. Corporate selling, general and administrative expenses were approximately $10.4 million for the three months ended September 30, 2023 compared to $9.8 million for the three months ended September 30, 2022, an increase of approximately $0.6 million. The increase is primarily due to higher third-party consulting and audit expenses.
Depreciation and amortization expense was approximately $1.8 million for the three months ended September 30, 2023 compared to approximately $2.5 million for the three months ended September 30, 2022, a decrease of approximately $0.7 million due to capitalized assets becoming fully depreciated.
Impairment of goodwill, intangible assets and long-lived assets was approximately $85.4 million during the three months ended September 30, 2023 compared to approximately $15.5 million for the three months ended September 30, 2022, a decrease of approximately $70.0 million. During the three months ended September 30, 2023, the Company recognized a non-cash impairment charge of approximately $85.4 million for its radio broadcasting licenses associated with 10 markets.
Interest income was approximately $2.3 million for the three months ended September 30, 2023 compared to approximately $0.4 million for the three months ended September 30, 2022. The increase was driven by higher cash balances in the three months ended September 30, 2023.
Interest expense was approximately $14.0 million for the three months ended September 30, 2023 compared to approximately $15.3 million for the three months ended September 30, 2022, a decrease of approximately $1.3 million. The decrease is due to lower overall debt balances outstanding. During the first quarter of 2023, the Company repurchased approximately $25.0 million of its 2028 Notes at an average price of approximately 89.1% of par. The Company paid interest expense of approximately $27.0 million and $29.9 million for the three months ended September 30, 2023 and 2022, respectively.
Other income, net, was approximately $0.1 million for the three months ended September 30, 2023 compared to approximately $2.0 million for the three months ended September 30, 2022. During the three months ended September 30, 2022, the Company recognized income related to its MGM investment.
For the three months ended September 30, 2023, we recorded a benefit from income taxes of approximately $16.8 million. This amount is based on the actual effective tax rate of 23.8%. This rate includes $0.3 million of discrete tax benefits primarily related to deferred rate changes. For the three months ended September 30, 2022, we recorded a provision for income taxes of approximately $3.2 million on pre-tax income from consolidated operations of approximately $7.0 million which results in an effective tax rate of 46.2%. This rate includes $0.1 million of discrete tax benefits primarily related to statutory state tax rate changes. The Company paid income taxes of approximately $1.6 million and $247,000 for the three months ended September 30, 2023 and 2022, respectively.
Other pertinent financial information includes capital expenditures of approximately $2.5 million and $1.4 million for the quarter ended September 30, 2023 and 2022, respectively.
During the quarter ended September 30, 2023, the Company did not repurchase any shares of Class A common stock and repurchased 38,371 shares of Class D common stock in the amount of $195,000. During the quarter ended September 30, 2022, the Company did not repurchase any shares of Class A common stock and repurchased 426,675 shares of Class D common stock in the amount of approximately $1.8 million.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited statements of operations for the three and nine months ended September 30, 2023 are included.
Three Months Ended September 30, 2023 | ||||||||||||||||
(in thousands, unaudited) | ||||||||||||||||
All Other - | ||||||||||||||||
Radio | Reach | Cable | Corporate/ | |||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | |||||||||||
STATEMENT OF OPERATIONS: | ||||||||||||||||
NET REVENUE | $ | 117,825 | $ | 40,152 | $ | 11,157 | $ | 20,356 | $ | 46,787 | $ | (627) | ||||
OPERATING EXPENSES: | ||||||||||||||||
Programming and technical | 33,903 | 11,715 | 3,963 | 3,384 | 15,204 | (363) | ||||||||||
Selling, general and administrative | 40,142 | 19,829 | 3,145 | 9,623 | 7,970 | (425) | ||||||||||
Corporate selling, general and administrative | 10,418 | - | 673 | 2 | 1,374 | 8,369 | ||||||||||
Stock-based compensation | 2,218 | 157 | 184 | 54 | 15 | 1,808 | ||||||||||
Depreciation and amortization | 1,808 | 925 | 41 | 376 | 110 | 356 | ||||||||||
Impairment of long-lived assets | 85,448 | 85,448 | - | - | - | - | ||||||||||
Total operating expenses | 173,937 | 118,074 | 8,006 | 13,439 | 24,673 | 9,745 | ||||||||||
Operating (loss) income | (56,112) | (77,922) | 3,151 | 6,917 | 22,114 | (10,372) | ||||||||||
INTEREST INCOME | 2,256 | - | - | - | - | 2,256 | ||||||||||
INTEREST EXPENSE | 13,983 | 56 | - | - | - | 13,927 | ||||||||||
GAIN ON RETIREMENT OF DEBT | - | - | - | - | - | - | ||||||||||
OTHER (LOSS) INCOME, net | 75 | 60 | - | - | - | 15 | ||||||||||
(Loss) income from consolidated operations before (benefit from) provision for income taxes | (67,764) | (77,918) | 3,151 | 6,917 | 22,114 | (22,028) | ||||||||||
(BENEFIT FROM) PROVISION FOR INCOME TAXES | (16,778) | (17,617) | 310 | - | 2,487 | (1,958) | ||||||||||
Net (loss) income from consolidated operations | (50,986) | (60,301) | 2,841 | 6,917 | 19,627 | (20,070) | ||||||||||
LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax | (2,728) | - | - | - | - | (2,728) | ||||||||||
NET (LOSS) INCOME | (53,714) | (60,301) | 2,841 | 6,917 | 19,627 | (22,798) | ||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 697 | - | - | - | - | 697 | ||||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (54,411) | $ | (60,301) | $ | 2,841 | $ | 6,917 | $ | 19,627 | $ | (23,495) | ||||
Adjusted EBITDA2 | $ | 34,142 | $ | 8,583 | $ | 3,420 | $ | 7,356 | $ | 22,239 | $ | (7,456) | ||||
Three Months Ended September 30, 2022 | ||||||||||||||||
(in thousands, unaudited) | ||||||||||||||||
All Other - | ||||||||||||||||
Radio | Reach | Cable | Corporate/ | |||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | |||||||||||
STATEMENT OF OPERATIONS: | ||||||||||||||||
NET REVENUE | $ | 121,250 | $ | 40,407 | $ | 10,071 | $ | 20,986 | $ | 50,631 | $ | (845) | ||||
OPERATING EXPENSES: | ||||||||||||||||
Programming and technical | 29,490 | 9,801 | 3,701 | 3,028 | 13,343 | (383) | ||||||||||
Selling, general and administrative | 40,918 | 17,842 | 2,036 | 10,379 | 11,123 | (462) | ||||||||||
Corporate selling, general and administrative | 9,777 | - | 671 | - | 1,202 | 7,904 | ||||||||||
Stock-based compensation | 5,114 | 4 | 579 | 1 | 309 | 4,221 | ||||||||||
Depreciation and amortization | 2,505 | 837 | 50 | 329 | 955 | 334 | ||||||||||
Impairment of long-lived assets | 15,450 | 15,450 | - | - | - | - | ||||||||||
Total operating expenses | 103,254 | 43,934 | 7,037 | 13,737 | 26,932 | 11,614 | ||||||||||
Operating income (loss) | 17,996 | (3,527) | 3,034 | 7,249 | 23,699 | (12,459) | ||||||||||
INTEREST INCOME | 415 | - | - | - | - | 415 | ||||||||||
INTEREST EXPENSE | 15,310 | 50 | - | 79 | 1,919 | 13,262 | ||||||||||
GAIN ON RETIREMENT OF DEBT | 1,837 | - | - | - | - | 1,837 | ||||||||||
OTHER INCOME (LOSS), net | 2,021 | (120) | - | - | - | 2,141 | ||||||||||
Income (loss) from consolidated operations before provision (benefit from) for income taxes | 6,959 | (3,697) | 3,034 | 7,170 | 21,780 | (21,328) | ||||||||||
PROVISION (BENEFIT FROM) FOR INCOME TAXES | 3,213 | 3,204 | 1,673 | - | 8,379 | (10,043) | ||||||||||
Net income (loss) from consolidated operations | 3,746 | (6,901) | 1,361 | 7,170 | 13,401 | (11,285) | ||||||||||
LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax | - | - | - | - | - | - | ||||||||||
NET INCOME (LOSS) | 3,746 | (6,901) | 1,361 | 7,170 | 13,401 | (11,285) | ||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 277 | - | - | - | - | 277 | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 3,469 | $ | (6,901) | $ | 1,361 | $ | 7,170 | $ | 13,401 | $ | (11,562) | ||||
Adjusted EBITDA2 | $ | 44,341 | $ | 12,852 | $ | 3,662 | $ | 7,580 | $ | 24,964 | $ | (4,717) | ||||
Nine Months Ended September 30, 2023 | ||||||||||||||||
(in thousands, unaudited) | ||||||||||||||||
All Other - | ||||||||||||||||
Radio | Reach | Cable | Corporate/ | |||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | |||||||||||
STATEMENT OF OPERATIONS: | ||||||||||||||||
NET REVENUE | $ | 357,346 | $ | 114,528 | $ | 42,125 | $ | 54,335 | $ | 148,895 | $ | (2,537) | ||||
OPERATING EXPENSES: | ||||||||||||||||
Programming and technical | 100,304 | 32,570 | 11,969 | 10,331 | 46,562 | (1,128) | ||||||||||
Selling, general and administrative | 126,634 | 54,557 | 16,721 | 26,763 | 30,390 | (1,797) | ||||||||||
Corporate selling, general and administrative | 30,333 | - | 2,010 | 3 | 5,021 | 23,299 | ||||||||||
Stock-based compensation | 7,816 | 446 | 626 | 134 | 574 | 6,036 | ||||||||||
Depreciation and amortization | 6,291 | 2,730 | 120 | 1,077 | 1,327 | 1,037 | ||||||||||
Impairment of long-lived assets | 124,304 | 124,304 | - | - | - | - | ||||||||||
Total operating expenses | 395,682 | 214,607 | 31,446 | 38,308 | 83,874 | 27,447 | ||||||||||
Operating (loss) income | (38,336) | (100,079) | 10,679 | 16,027 | 65,021 | (29,984) | ||||||||||
INTEREST INCOME | 4,488 | - | - | - | - | 4,488 | ||||||||||
INTEREST EXPENSE | 42,023 | 167 | - | - | 2,559 | 39,297 | ||||||||||
GAIN ON RETIREMENT OF DEBT | (2,356) | - | - | - | - | (2,356) | ||||||||||
OTHER INCOME (LOSS), net | 96,535 | (7) | - | - | - | 96,542 | ||||||||||
Income (loss) before income from consolidated operations before provision for (benefit from) income taxes | 23,020 | (100,253) | 10,679 | 16,027 | 62,462 | 34,105 | ||||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 5,259 | (24,535) | 2,342 | - | 13,705 | 13,747 | ||||||||||
Net (loss) income from consolidated operations | 17,761 | (75,718) | 8,337 | 16,027 | 48,757 | 20,358 | ||||||||||
LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax | (2,728) | - | - | - | - | (2,728) | ||||||||||
NET INCOME (LOSS) | 15,033 | (75,718) | 8,337 | 16,027 | 48,757 | 17,630 | ||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 2,000 | - | - | - | - | 2,000 | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 13,033 | $ | (75,718) | $ | 8,337 | $ | 16,027 | $ | 48,757 | $ | 15,630 | ||||
Adjusted EBITDA2 | $ | 101,932 | $ | 27,601 | $ | 11,479 | $ | 17,275 | $ | 66,922 | $ | (21,344) | ||||
Nine Months Ended September 30, 2022 | ||||||||||||||||
(in thousands, unaudited) | ||||||||||||||||
All Other - | ||||||||||||||||
Radio | Reach | Cable | Corporate/ | |||||||||||||
Consolidated | Broadcasting | Media | Digital | Television | Eliminations | |||||||||||
STATEMENT OF OPERATIONS: | ||||||||||||||||
NET REVENUE | $ | 352,038 | $ | 109,091 | $ | 31,194 | $ | 54,353 | $ | 160,144 | $ | (2,744) | ||||
OPERATING EXPENSES: | ||||||||||||||||
Programming and technical | 86,359 | 27,797 | 10,841 | 9,605 | 39,263 | (1,147) | ||||||||||
Selling, general and administrative | 111,321 | 49,002 | 6,058 | 24,876 | 32,982 | (1,597) | ||||||||||
Corporate selling, general and administrative | 31,206 | - | 1,985 | 7 | 4,425 | 24,789 | ||||||||||
Stock-based compensation | 5,574 | 4 | 578 | 1 | 634 | 4,357 | ||||||||||
Depreciation and amortization | 7,391 | 2,477 | 143 | 995 | 2,853 | 923 | ||||||||||
Impairment of long-lived assets | 30,355 | 30,355 | - | - | - | - | ||||||||||
Total operating expenses | 272,206 | 109,635 | 19,605 | 35,484 | 80,157 | 27,325 | ||||||||||
Operating income (loss) | 79,832 | (544) | 11,589 | 18,869 | 79,987 | (30,069) | ||||||||||
INTEREST INCOME | 474 | - | - | - | - | 474 | ||||||||||
INTEREST EXPENSE | 47,123 | 149 | - | 238 | 5,757 | 40,979 | ||||||||||
GAIN ON RETIREMENT OF DEBT | 3,692 | - | - | - | - | 3,692 | ||||||||||
OTHER INCOME (LOSS), net | 13,732 | (128) | - | - | - | 13,860 | ||||||||||
Income (loss) before income from consolidated operations before provision for (benefit from) income taxes | 50,607 | (821) | 11,589 | 18,631 | 74,230 | (53,022) | ||||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 12,803 | (1,565) | 3,973 | - | 22,480 | (12,085) | ||||||||||
Net income (loss) from consolidated operations | 37,804 | 744 | 7,616 | 18,631 | 51,750 | (40,937) | ||||||||||
LOSS FROM UNCONSOLIDATED JOINT VENTURE, net of tax | - | - | - | - | - | - | ||||||||||
NET INCOME (LOSS) | 37,804 | 744 | 7,616 | 18,631 | 51,750 | (40,937) | ||||||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1,553 | - | - | - | - | 1,553 | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 36,251 | $ | 744 | $ | 7,616 | $ | 18,631 | $ | 51,750 | $ | (42,490) | ||||
Adjusted EBITDA2 | $ | 133,853 | $ | 32,420 | $ | 12,310 | $ | 19,871 | $ | 83,475 | $ | (14,223) | ||||
Urban One, Inc. will hold a conference call to discuss its results for the third fiscal quarters of 2023. The conference call is scheduled for Thursday, January 11, 2024 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-844-291-4185; international callers may dial direct (+1) 409-207-6997. The Access Code is 2080185.
A replay of the conference call will be available from 1:00 p.m. EST January 11, 2024 until 12:00 a.m. EST January 18, 2024. Callers may access the replay by calling 1-866-207-1041; international callers may dial direct (+1) 402-970-0847. The replay Access Code is 2318685.
Access to live audio and a replay of the conference call will also be available on Urban One's corporate website at www.urban1.com. The replay will be made available on the website for seven days after the call.
Urban One Inc. (urban1.com), together with its subsidiaries, is the largest diversified media company that primarily targets Black Americans and urban consumers in the United States. The Company owns TV One, LLC (tvone.tv), a television network serving more than 59 million households, offering a broad range of original programming, classic series and movies designed to entertain, inform, and inspire a diverse audience of adult Black viewers. As of January 05, 2024, we owned and/or operated 72 independently formatted, revenue producing broadcast stations (including 57 FM or AM stations, 13 HD stations, and the 2 low power television stations) branded under the tradename "Radio One" in 13 urban markets in the United States. Through its controlling interest in Reach Media, Inc. (blackamericaweb.com), the Company also operates syndicated programming including the Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. In addition to its radio and television broadcast assets, Urban One owns iOne Digital (ionedigital.com), our wholly owned digital platform serving the African American community through social content, news, information, and entertainment websites, including its Cassius, Bossip, HipHopWired and MadameNoire digital platforms and brands. Through our national multi-media operations, we provide advertisers with a unique and powerful delivery mechanism to the African American and urban audiences.
Notes:
1 "Broadcast and digital operating income" consists of net (loss) income before depreciation and amortization, corporate selling, general and administrative expenses, stock-based compensation, income taxes, noncontrolling interest in income (loss) of subsidiaries, interest expense, impairment of long-lived assets, other (income) expense, loss (gain) on retirement of debt, gain on sale-leaseback and interest income. Broadcast and digital operating income is not a measure of financial performance under generally accepted accounting principles. Nevertheless, broadcast and digital operating income is a significant measure used by our management to evaluate the operating performance of our core operating segments because broadcast and digital operating income provides helpful information about our results of operations apart from expenses associated with our fixed assets and long-lived intangible assets, income taxes, investments, debt financings and retirements, overhead, stock-based compensation, impairment charges, and asset sales. Our measure of broadcast and digital operating income is similar to industry use of station operating income; however, it reflects our more diverse business and therefore is not completely analogous to "station operating income" or other similarly titled measures used by other companies. Broadcast and digital operating income does not purport to represent operating income or loss, or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as an alternative to those measurements as an indicator of our performance. A reconciliation of net income (loss) to broadcast and digital operating income has been provided in this release.
2 "Adjusted EBITDA" consists of net income (loss) plus (1) depreciation, amortization, income taxes, interest expense, noncontrolling interest in (loss) income of subsidiaries, impairment of long-lived assets, stock-based compensation, (gain) loss on retirement of debt, gain on sale-leaseback, Employment Agreement and incentive plan award expenses and other compensation, contingent consideration from acquisition, corporate development costs, severance-related costs, cost investment income, less (2) other income and interest income. Net income before interest income, interest expense, income taxes, depreciation and amortization is commonly referred to in our business as "EBITDA." Adjusted EBITDA and EBITDA are not measures of financial performance under generally accepted accounting principles. However, we believe Adjusted EBITDA is often a useful measure of a company's operating performance and is a significant measure used by our management to evaluate the operating performance of our business because Adjusted EBITDA excludes charges for depreciation, amortization and interest expense that have resulted from our acquisitions and debt financing, our taxes, impairment charges, and gain on retirements of debt. Accordingly, we believe that Adjusted EBITDA provides useful information about the operating performance of our business, apart from the expenses associated with our fixed assets and long-lived intangible assets or capital structure. EBITDA is frequently used as one of the measures for comparing businesses in the broadcasting industry, although our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies, including, but not limited to the fact that our definition includes the results of all four segments (radio broadcasting, Reach Media, digital and cable television). Adjusted EBITDA and EBITDA do not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as alternatives to those measurements as an indicator of our performance. A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA has been provided in this release.
3 For the three months ended September 30, 2023 and 2022, Urban One had 47,629,163 and 46,625,484 shares of common stock outstanding on a weighted average basis (basic), respectively. For the nine months ended September 30, 2023 and 2022, Urban One had 47,514,722 and 49,504,238 shares of common stock outstanding on a weighted average basis (basic), respectively.
4 For the three months ended September 31, 2023 and 2022, Urban One had 47,629,163 and 50.206.608 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the nine months ended September 30, 2023 and 2022, Urban One had 50,373,714 and 53,171,793 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively.
SOURCE Urban One, Inc.
Share this article