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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
interest in income of subsidiaries 

(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.

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.

 

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SOURCE Urban One, Inc.

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