URBAN ONE, INC. REPORTS THIRD QUARTER 2024 RESULTS
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 ...
