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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
compensation

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
               income taxes and noncontrolling interests in
               income of subsidiaries

(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
STOCKHOLDERS

$                          (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
STOCKHOLDERS

$                          (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
Rate


(in thousands)



SELECTED LEVERAGE DATA:





7.375% senior secured notes due February 2028, net of issuance costs of
approximately $10.2 million (fixed rate)

$                         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
noncontrolling interests in income of subsidiaries


(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
noncontrolling interests in income of subsidiaries


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
               noncontrolling interests in income of subsidiaries


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
               noncontrolling interests in income of subsidiaries


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
               noncontrolling interests in income of subsidiaries


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
               noncontrolling interests in income of subsidiaries


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:

  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 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.
     
  4. 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.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/urban-one-inc-reports-first-and-second-quarter-2023-results-302008253.html

SOURCE Urban One, Inc.

Peter D. Thompson, EVP and CFO, (301) 429-4638