WASHINGTON, June 10,
2024 /PRNewswire/ -- Urban One, Inc. (NASDAQ:
UONEK and UONE) today reported its results for the year ended
December 31, 2023 and for the three
months ended March 31, 2024. For the
year ended December 31, 2023 net
revenue was approximately $477.7
million, a decrease of 1.4% from the same period in 2022.
The Company reported operating loss of approximately $31.6 million for the year ended December 31, 2023, compared to operating income
of approximately $91.1 million for
the year ended December 31, 2022.
Broadcast and digital operating income1 was
approximately $168.4 million, a
decrease of 16.5% from the same period in 2022. Net income was
approximately $2.1 million or
$0.04 per share (basic) compared to
$34.3 million or $0.70 per share (basic) for the same period in
2022. Adjusted EBITDA2 was approximately $128.4 million for the year ended December 31, 2023, compared to approximately
$165.2 million for the same period in
2022.
For the three months ended December 31,
2023 net revenue was approximately $120.3 million, a decrease of 9.2% from the same
period in 2022. The Company reported operating income of
approximately $6.8 million for the
three months ended December 31, 2023,
compared to operating income of approximately $11.3 million for the three months ended
December 31, 2022. Broadcast and
digital operating income1 was approximately $38.0 million, a decrease of 19.6% from the same
period in 2022. Net loss was approximately $11.0 million or $0.23 per share (basic) compared to a loss of
$1.9 million or $0.04 per share (basic) for the same period in
2022. Adjusted EBITDA2 was approximately $26.4 million for the three months ended
December 31, 2023, compared to
approximately $31.3 million for the
same period in 2022.
For the three months ended March 31,
2024 net revenue was approximately $104.4 million, a decrease of 5.0% from the same
period in 2023. The Company reported operating income of
approximately $12.9 million for the
three months ended March 31, 2024,
compared to operating income of approximately $8.1 million for the three months ended
March 31, 2023. Broadcast and digital
operating income1 was approximately $32.0 million, a decrease of 18.5% from the same
period in 2023. Net income was approximately $7.5 million or $0.15 per share (basic) compared to a loss of
$2.9 million or $0.06 per share (basic) for the same period in
2023. Adjusted EBITDA2 was approximately $21.5 million for the three months ended
March 31, 2024, compared to
approximately $30.3 million for the
same period in 2023.
Alfred C. Liggins, III, Urban
One's CEO and President stated, "our Adjusted EBITDA for FY23 came
in just above the high-end of our previous guidance at $128.4m. As expected, we suffered a drop in radio
division broadcast cash flow as a result of reduced political
advertising compared to Q4 2022. Other divisions performed broadly
in line with expectations, although the continuing churn in cable
television subscribers remains an industry-wide concern. For Q1 our
national radio revenues were hit by tough comparatives on a handful
of large clients plus a general softness in the market. Second
quarter radio pacing's are sequentially better, with same station
core revenues down mid-single-digits and low-single digits
including political. Cable television affiliate fees continue to be
a drag, with Q1 down 12.8% year over year. Demand for some of our
digital products was soft in Q1, with net digital segment revenue
down 7.3%. National direct digital revenue was down double digits,
partially offset by growth in VOD, streaming audio and podcast. We
are optimistic about political advertising revenues for the
remainder of the year, which should benefit both our radio and
digital divisions. During Q1 we repurchased $75.0 million of our 2028 notes at 88.3%, and we
ended the quarter with approximately $155.7
million of cash."
|
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Years Ended December
31,
|
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
STATEMENT OF
OPERATIONS
|
(in thousands, except
share data)
|
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
120,344
|
|
$
132,566
|
|
|
$
477,690
|
|
$
484,604
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
36,580
|
|
36,270
|
|
|
136,884
|
|
122,629
|
|
Selling, general and
administrative, excluding stock-based compensation
|
45,807
|
|
49,082
|
|
|
172,440
|
|
160,403
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
23,251
|
|
18,648
|
|
|
53,583
|
|
49,854
|
|
Stock-based
compensation
|
2,160
|
|
4,338
|
|
|
9,975
|
|
9,912
|
|
Depreciation and
amortization
|
810
|
|
2,643
|
|
|
7,101
|
|
10,034
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
4,972
|
|
10,328
|
|
|
129,278
|
|
40,683
|
|
Total operating
expenses
|
113,580
|
|
121,309
|
|
|
509,261
|
|
393,515
|
|
Operating income (loss)
|
6,764
|
|
11,257
|
|
|
(31,571)
|
|
91,089
|
|
INTEREST
INCOME
|
2,479
|
|
465
|
|
|
6,967
|
|
939
|
|
INTEREST
EXPENSE
|
14,173
|
|
14,628
|
|
|
56,196
|
|
61,751
|
|
GAIN ON RETIREMENT OF
DEBT
|
-
|
|
3,026
|
|
|
2,356
|
|
6,718
|
|
Other (loss) income,
net
|
(451)
|
|
2,351
|
|
|
96,084
|
|
16,083
|
|
(Loss) income before
provision for income taxes and noncontrolling interest in income of
subsidiaries
|
(5,381)
|
|
2,471
|
|
|
17,640
|
|
53,078
|
|
PROVISION FOR INCOME
TAXES
|
2,686
|
|
3,615
|
|
|
7,944
|
|
16,418
|
|
Net (loss) income from
consolidated operations
|
(8,067)
|
|
(1,144)
|
|
|
9,696
|
|
36,660
|
|
Loss from
unconsolidated joint venture
|
(2,403)
|
|
-
|
|
|
(5,131)
|
|
-
|
|
NET (LOSS)
INCOME
|
(10,470)
|
|
(1,144)
|
|
|
4,565
|
|
36,660
|
|
NET INCOME ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
|
515
|
|
764
|
|
|
2,515
|
|
2,317
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
(10,985)
|
|
$
(1,908)
|
|
|
$
2,050
|
|
$
34,343
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic3
|
47,804,932
|
|
48,928,063
|
|
|
47,645,678
|
|
48,928,063
|
|
Weighted average shares
outstanding - diluted4
|
47,804,932
|
|
52,174,337
|
|
|
50,243,810
|
|
52,174,337
|
|
RESULTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
2023
|
|
STATEMENT OF
OPERATIONS
|
(unaudited)
|
|
|
(in thousands, except
share data)
|
|
|
|
|
|
|
NET REVENUE
|
$
104,410
|
|
$
109,869
|
|
OPERATING
EXPENSES
|
|
|
|
|
Programming and
technical, excluding stock-based compensation
|
32,659
|
|
33,854
|
|
Selling, general and
administrative, excluding stock-based compensation
|
39,737
|
|
36,715
|
|
Corporate selling,
general and administrative, excluding stock-based
compensation
|
15,892
|
|
8,530
|
|
Stock-based
compensation
|
1,384
|
|
3,278
|
|
Depreciation and
amortization
|
1,850
|
|
2,597
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
-
|
|
16,775
|
|
Total operating
expenses
|
91,522
|
|
101,749
|
|
Operating income
|
12,888
|
|
8,120
|
|
INTEREST
INCOME
|
1,998
|
|
333
|
|
INTEREST
EXPENSE
|
12,998
|
|
14,068
|
|
GAIN ON RETIREMENT OF
DEBT
|
7,874
|
|
2,356
|
|
Other income (expense),
net
|
886
|
|
(312)
|
|
Income (loss) from
consolidated operations before provision for (benefit from) income
taxes
|
10,648
|
|
(3,571)
|
|
PROVISION FOR (BENEFIT
FROM) INCOME TAXES
|
2,502
|
|
(1,160)
|
|
Net income (loss) from
consolidated operations
|
8,146
|
|
(2,411)
|
|
Loss from
unconsolidated joint venture
|
(411)
|
|
-
|
|
NET INCOME
(LOSS)
|
7,735
|
|
(2,411)
|
|
NET INCOME ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
|
242
|
|
511
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
7,493
|
|
$
(2,922)
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic3
|
48,385,386
|
|
47,420,832
|
|
Weighted average shares
outstanding - diluted4
|
49,921,803
|
|
47,420,832
|
|
Three Months Ended
December 31,
|
|
Years Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
PER SHARE DATA - basic
and diluted:
|
|
|
|
|
|
|
|
|
(in thousands, except
per share data)
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to common stockholders
(basic)
|
(0.23)
|
|
(0.04)
|
|
0.04
|
|
0.70
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to common stockholders
(diluted)
|
(0.23)
|
|
(0.04)
|
|
0.04
|
|
0.66
|
|
|
|
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
|
|
|
|
Broadcast and digital
operating income 1
|
$
37,957
|
|
$
47,214
|
|
$
168,366
|
|
$
201,572
|
|
|
|
|
|
|
|
|
|
Broadcast and
digital operating income reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to common stockholders
|
$
(10,985)
|
|
$
(1,908)
|
|
$
2,050
|
|
$
34,343
|
|
Add back/(deduct)
certain non-broadcast and digital operating income items included
in net (loss) income:
|
|
|
|
|
|
|
|
|
Interest
income
|
(2,479)
|
|
(465)
|
|
(6,967)
|
|
(939)
|
|
Interest
expense
|
14,173
|
|
14,628
|
|
56,196
|
|
61,751
|
|
Provision for income
taxes
|
2,686
|
|
3,615
|
|
7,944
|
|
16,418
|
|
Corporate selling,
general and administrative expenses
|
23,251
|
|
18,648
|
|
53,583
|
|
49,854
|
|
Stock-based
compensation
|
2,160
|
|
4,338
|
|
9,975
|
|
9,912
|
|
Gain on retirement of
debt
|
-
|
|
(3,026)
|
|
(2,356)
|
|
(6,718)
|
|
Other (loss) income,
net
|
451
|
|
(2,351)
|
|
(96,084)
|
|
(16,083)
|
|
Loss from
unconsolidated joint venture
|
2,403
|
|
-
|
|
5,131
|
|
-
|
|
Depreciation and
amortization
|
810
|
|
2,643
|
|
7,101
|
|
10,034
|
|
Net income attributable
to noncontrolling interests
|
515
|
|
764
|
|
2,515
|
|
2,317
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
4,972
|
|
10,328
|
|
129,278
|
|
40,683
|
|
Broadcast and digital
operating income
|
$
37,957
|
|
$
47,214
|
|
$
168,366
|
|
$
201,572
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
26,447
|
|
$
31,328
|
|
$
128,379
|
|
$
165,180
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to common stockholders
|
$
(10,985)
|
|
$
(1,908)
|
|
$
2,050
|
|
$
34,343
|
|
Interest
income
|
(2,479)
|
|
(465)
|
|
(6,967)
|
|
(939)
|
|
Interest
expense
|
14,173
|
|
14,628
|
|
56,196
|
|
61,751
|
|
Provision for income
taxes
|
2,686
|
|
3,615
|
|
7,944
|
|
16,418
|
|
Depreciation and
amortization
|
810
|
|
2,643
|
|
7,101
|
|
10,034
|
|
EBITDA
|
$
4,205
|
|
$
18,513
|
|
$
66,324
|
|
$
121,607
|
|
Stock-based
compensation
|
2,160
|
|
4,338
|
|
9,975
|
|
9,912
|
|
Gain on retirement of
debt
|
-
|
|
(3,026)
|
|
(2,356)
|
|
(6,718)
|
|
Other (loss) income,
net
|
451
|
|
(2,351)
|
|
(96,084)
|
|
(16,083)
|
|
Loss from
unconsolidated joint venture
|
2,403
|
|
-
|
|
5,131
|
|
-
|
|
Net income attributable
to noncontrolling interests
|
515
|
|
764
|
|
2,515
|
|
2,317
|
|
Corporate development
costs
|
3,880
|
|
350
|
|
8,196
|
|
2,221
|
|
Employment Agreement
Award and other compensation
|
2,832
|
|
(609)
|
|
169
|
|
1,587
|
|
Severance-related
costs
|
352
|
|
462
|
|
669
|
|
850
|
|
Investment income
(expense) from MGM National Harbor
|
-
|
|
2,559
|
|
(115)
|
|
8,804
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
4,972
|
|
10,328
|
|
129,278
|
|
40,683
|
|
Other nonrecurring
expenses
|
4,677
|
|
-
|
|
4,677
|
|
-
|
|
Adjusted
EBITDA
|
$
26,447
|
|
$
31,328
|
|
$
128,379
|
|
$
165,180
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
|
PER SHARE DATA - basic
and diluted:
|
(unaudited)
|
|
(unaudited)
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
Net
income (loss) attributable to common stockholders
(basic)
|
0.15
|
|
(0.06)
|
|
|
|
|
|
Net
income (loss) attributable to common stockholders
(diluted)
|
0.15
|
|
(0.06)
|
|
|
|
|
|
SELECTED OTHER
DATA
|
|
|
|
|
Broadcast and digital
operating income 1
|
$
32,014
|
|
$
39,300
|
|
|
|
|
|
Broadcast and
digital operating income reconciliation:
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to common stockholders
|
$
7,493
|
|
$
(2,922)
|
|
Add back/(deduct)
certain non-broadcast and digital operating income items included
in net (loss) income:
|
|
|
|
|
Interest
income
|
(1,998)
|
|
(333)
|
|
Interest
expense
|
12,998
|
|
14,068
|
|
Provision for (benefit
from) income taxes
|
2,502
|
|
(1,160)
|
|
Corporate selling,
general and administrative expenses
|
15,892
|
|
8,530
|
|
Stock-based
compensation
|
1,384
|
|
3,278
|
|
Gain on retirement of
debt
|
(7,874)
|
|
(2,356)
|
|
Other (income) expense,
net
|
(886)
|
|
312
|
|
Loss from
unconsolidated joint venture
|
411
|
|
-
|
|
Depreciation and
amortization
|
1,850
|
|
2,597
|
|
Net income attributable
to noncontrolling interests
|
242
|
|
511
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
-
|
|
16,775
|
|
Broadcast and digital
operating income
|
$
32,014
|
|
$
39,300
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
21,545
|
|
$
30,285
|
|
|
|
|
|
Adjusted EBITDA
reconciliation:
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to common stockholders
|
$
7,493
|
|
$
(2,922)
|
|
Interest
income
|
(1,998)
|
|
(333)
|
|
Interest
expense
|
12,998
|
|
14,068
|
|
Provision for (benefit
from) income taxes
|
2,502
|
|
(1,160)
|
|
Depreciation and
amortization
|
1,850
|
|
2,597
|
|
EBITDA
|
$
22,845
|
|
$
12,250
|
|
Stock-based
compensation
|
1,384
|
|
3,278
|
|
Gain on retirement of
debt
|
(7,874)
|
|
(2,356)
|
|
Other (income) expense,
net
|
(886)
|
|
312
|
|
Loss from
unconsolidated joint venture
|
411
|
|
-
|
|
Net income attributable
to noncontrolling interests
|
242
|
|
511
|
|
Corporate
costs
|
5,359
|
|
(376)
|
|
Employment Agreement
Award and other compensation
|
-
|
|
(144)
|
|
Severance-related
costs
|
64
|
|
150
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
-
|
|
16,775
|
|
Investment expense from
MGM National Harbor
|
-
|
|
(115)
|
|
Adjusted
EBITDA
|
$
21,545
|
|
$
30,285
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
|
|
|
(in
thousands)
|
|
SELECTED BALANCE SHEET
DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
233,570
|
|
101,879
|
|
Intangible assets,
net
|
645,979
|
|
765,191
|
|
Available-for-sale
securities - at fair value
|
-
|
|
136,826
|
|
Total assets
|
1,211,173
|
|
1,344,646
|
|
Total debt (including
current portion, net of issuance costs)
|
716,246
|
|
739,000
|
|
Total
liabilities
|
920,588
|
|
981,973
|
|
Total stockholders'
equity
|
274,065
|
|
330,750
|
|
Redeemable
noncontrolling interests
|
16,520
|
|
31,923
|
|
|
|
|
|
|
|
December 31,
2023
|
|
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)
|
$
716,246
|
|
7.375 %
|
|
March 31,
2024
|
|
December 31,
2023
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
SELECTED BALANCE SHEET
DATA:
|
|
|
Cash and cash
equivalents and restricted cash
|
155,746
|
|
233,570
|
|
Intangible assets,
net
|
644,688
|
|
645,979
|
|
Total assets
|
1,126,023
|
|
1,211,173
|
|
Total debt (including
current portion, net of issuance costs)
|
642,579
|
|
716,246
|
|
Total
liabilities
|
832,457
|
|
920,588
|
|
Total stockholders'
equity
|
285,202
|
|
274,065
|
|
Redeemable
noncontrolling interests
|
8,364
|
|
16,520
|
|
|
|
|
|
|
|
March 31,
2024
|
|
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)
|
$
642,579
|
|
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 year ended December 31,
2023, we recognized approximately $477.7 million in net revenue compared to
approximately $484.6 million during
the year ended December 31, 2022.
These amounts are net of agency and outside sales representative
commissions. We recognized approximately $156.2 million of revenue from our radio
broadcasting segment during the year ended December 31, 2023, compared to approximately
$156.7 million for the year ended
December 31, 2022, a decrease of
approximately $0.5 million, primarily
due to lower political revenue offset by new stations in the
Indianapolis and Houston markets. Based on reports prepared by
Miller Kaplan, the markets we
operate in decreased 5.5% in total revenues. We experienced net
revenue reduction in all of our existing radio markets, with the
exception of Cleveland and
Columbus. We recognized
approximately $52.9 million of
revenue from our Reach Media segment during the year ended
December 31, 2023, compared to
approximately $43.1 million for the
year ended December 31, 2022, an
increase of approximately $9.8
million. The increase was primarily driven by the addition
of the Fantastic Voyage cruise during the second quarter of 2023.
We recognized approximately $75.5
million of revenue from our digital segment during the year
ended December 31, 2023, compared to
$78.5 million during the year ended
December 31, 2022, a decrease of
approximately $3.0 million. This
decrease was primarily driven by a decrease in direct revenue. We
recognized approximately $196.2
million of revenue from our cable television segment during
the year ended December 31, 2023,
compared to $209.9 million during the
year ended December 31, 2022, a
decrease of approximately $13.7
million. The decrease was primarily driven by a decrease in
affiliate fees due to subscriber churn, lower ratings and decreased
advertising sales.
During the three months ended March 31,
2024, we recognized approximately $104.4 million in net revenue compared to
approximately $109.9 million during
the three months ended March 31,
2023. These amounts are net of agency and outside sales
representative commissions. We recognized approximately
$36.4 million of revenue from our
radio broadcasting segment during the three months ended
March 31, 2024, compared to
approximately $35.2 million during
the three months ended March 31,
2023, an increase of approximately $1.2 million. This increase was primarily due to
the Houston station acquisition, which was completed in
August 2023, offset by a decrease in
national advertising. We recognized approximately $8.5 million of revenue from our Reach Media
segment during the three months ended March
31, 2024, compared to approximately $10.9 million for the three months ended
March 31, 2023, a decrease of
approximately $2.4 million. The
decrease was primarily driven by the decrease in overall demand and
attrition of advertisers. We recognized approximately $14.0 million of revenue from our digital segment
during the three months ended March 31,
2024, compared to approximately $15.1
million for the three months ended March 31, 2023, a decrease of approximately
$1.1 million. The decrease was
primarily driven by a decrease in national markets digital sales
and lower demand from the Company's advertisers. We recognized
approximately $46.2 million of
revenue from our cable television segment during the three months
ended March 31, 2024, compared to
approximately $49.7 million for the
three months ended March 31, 2023, a
decrease of approximately $3.5
million. The decrease was primarily driven by a decrease in
audience viewership affecting advertising sales and the consistent
churn in subscribers.
The following charts indicates the sources of our net revenue
for the year end December 31, 2023
and three months ended March 31,
2024:
|
|
Three Months Ended
December 31,
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
$
Change
|
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
(As
Restated)
|
|
|
|
|
|
|
|
|
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
47,814
|
|
$
|
48,542
|
|
$
|
(728)
|
|
|
-1.5
|
%
|
|
Political
Advertising
|
|
|
1,948
|
|
|
8,089
|
|
|
(6,141)
|
|
|
-75.9
|
%
|
|
Digital
Advertising
|
|
|
20,838
|
|
|
23,301
|
|
|
(2,463)
|
|
|
-10.6
|
%
|
|
Cable Television
Advertising
|
|
|
27,021
|
|
|
26,522
|
|
|
499
|
|
|
1.9
|
%
|
|
Cable Television
Affiliate Fees
|
|
|
20,158
|
|
|
23,278
|
|
|
(3,120)
|
|
|
-13.4
|
%
|
|
Event Revenues &
Other
|
|
|
2,564
|
|
|
2,834
|
|
|
(270)
|
|
|
-9.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
120,344
|
|
$
|
132,566
|
|
$
|
(12,222)
|
|
|
-9.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December
31,
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
$
Change
|
|
|
%
Change
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
182,362
|
|
$
|
177,268
|
|
$
|
5,094
|
|
|
2.9
|
%
|
|
Political
Advertising
|
|
|
3,881
|
|
|
13,226
|
|
|
(9,345)
|
|
|
-70.7
|
%
|
|
Digital
Advertising
|
|
|
74,866
|
|
|
76,730
|
|
|
(1,864)
|
|
|
-2.4
|
%
|
|
Cable Television
Advertising
|
|
|
108,307
|
|
|
112,857
|
|
|
(4,550)
|
|
|
-4.0
|
%
|
|
Cable Television
Affiliate Fees
|
|
|
87,747
|
|
|
96,963
|
|
|
(9,216)
|
|
|
-9.5
|
%
|
|
Event Revenues &
Other
|
|
|
20,527
|
|
|
7,560
|
|
|
12,967
|
|
|
171.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
477,690
|
|
$
|
484,604
|
|
$
|
(6,914)
|
|
|
-1.4 %
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
$
Change
|
|
|
%
Change
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
(As
Restated)
|
|
|
|
|
|
|
|
|
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Radio
Advertising
|
|
$
|
41,341
|
|
$
|
43,108
|
|
$
|
(1,767)
|
|
|
-4.1
|
%
|
|
Political
Advertising
|
|
|
1,237
|
|
|
296
|
|
|
941
|
|
|
317.9
|
%
|
|
Digital
Advertising
|
|
|
13,946
|
|
|
15,024
|
|
|
(1,078)
|
|
|
-7.2
|
%
|
|
Cable Television
Advertising
|
|
|
25,365
|
|
|
25,822
|
|
|
(457)
|
|
|
-1.8
|
%
|
|
Cable Television
Affiliate Fees
|
|
|
20,787
|
|
|
23,837
|
|
|
(3,050)
|
|
|
-12.8
|
%
|
|
Event Revenues &
Other
|
|
|
1,734
|
|
|
1,782
|
|
|
(48)
|
|
|
-2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue (as
reported)
|
|
$
|
104,410
|
|
$
|
109,869
|
|
$
|
(5,459)
|
|
|
-5.0 %
|
|
Operating expenses, excluding depreciation and amortization,
stock-based compensation, and impairment of long-lived assets,
increased to approximately $362.9
million for the year ended December
31, 2023, up 9.0% from the approximately $332.9 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 and higher corporate selling,
general and administrative expenses. There was an increase of
approximately $12.4 million in Radio
broadcasting's programming and technical expenses and selling and
general expenses primarily related to acquisitions in our
Indianapolis and Houston markets. There was an increase in
Cable television's programming and technical expenses due to higher
content amortization expense and increased payroll expenses. Reach
Media's selling, general and administrative expenses increased
$10.2 million primarily due to the
Fantastic Voyage cruise. There was an increase of approximately
$3.7 million in corporate selling,
general and administrative expenses relating to higher third-party
consulting fees.
Operating expenses, excluding depreciation and amortization,
stock-based compensation, and impairment of long-lived assets,
increased to approximately $88.3
million for the three months ended March 31, 2024, up 11.6% from the approximately
$79.1 million incurred for the
comparable period in 2023. The overall increase in operating
expense was due to an uptick in third-party consulting fees and an
increase in expenses resulting from the Houston station
acquisition.
Depreciation and amortization expense was approximately
$7.1 million for the year ended
December 31, 2023, compared to
approximately $10.0 million for the
year ended December 31, 2022, a
decrease of approximately $2.9
million. This decrease is due to capitalized assets becoming
fully depreciated.
Depreciation and amortization expense was approximately
$1.9 million for the three months
ended March 31, 2024 compared to
approximately $2.6 million for the
three months ended March 31, 2023, 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 $129.3 million
during the year ended December 31,
2023 compared to $40.7 million
for the year ended December 31, 2022,
an increase of approximately $88.6
million. The impairment loss of $129.3 million in 2023 was entirely associated
with the impairment of broadcasting licenses within the radio
broadcasting segment. The primary factors leading to the
impairments were a decline in projected gross market revenues
throughout 2023 and an increase in discount rate during the first
three quarters in 2023.
There was no impairment of goodwill, intangible assets and
long-lived assets during the three months ended March 31, 2024 compared to $16.8 million for the three months ended
March 31, 2023. The expense for the
three months ended March 31, 2023 was
driven by an impairment loss associated with the sale of the
KROI-FM radio broadcasting license.
Interest income was approximately $7.0
million for the year ended December
31, 2023 compared to approximately $0.9 million for the year ended December 31, 2022, an increase of approximately
$6.0 million. The increase was
primarily due to higher cash and cash equivalents balances during
the year ended December 31, 2023.
Interest income was approximately $2.0
million for the three months ended March 31, 2024 compared to $0.3 million for the three months ended
March 31, 2023. The increase was
driven by higher cash and cash equivalents balances in the three
months ended March 31, 2024 than in
the corresponding period in 2023.
Interest expense decreased to approximately $56.2 million for the year ended December 31, 2023, compared to approximately
$61.8 million for the year ended
December 31, 2022, a decrease of
approximately $5.6 million. The
decrease is due to lower overall debt balances outstanding. During
the year ended December 31, 2023, the
Company repurchased approximately $25.0
million of its $825.0 million
in aggregate principal amount of senior secured notes due 2028
("2028 Notes") at an average price of approximately 89.1% of
par.
Interest expense was approximately $13.0
million for the three months ended March 31, 2024 compared to approximately
$14.1 million for the three months
ended March 31, 2023, a decrease of
approximately $1.1 million. The
decrease was due to lower overall debt balances outstanding. During
the first quarter of 2024, the Company repurchased approximately
$75.0 million of its 2028 Notes at an
average price of approximately 88.3% of par.
Other income, net increased $80.0
million for the year ended December
31, 2023 from the year ended December
31, 2022. The increase was primarily due to the gain on sale
of the Company's MGM Investment, which was recognized in other
income, net, during the year ended December
31, 2023. During the year ended December 31, 2022, the Company recognized income
related to the MGM investment as well as the Paycheck Protection
Program loan program ("PPP") and related accrued interest that was
forgiven in other income, net.
Other income, net, was approximately $0.9
million for the three months ended March 31, 2024 compared to other expense, net of
$0.3 million for the three months
ended March 31, 2023. During the
three months ended March 31, 2024,
the Company recognized income related to the sale of its equity
interest in Broadcast Music Inc.
For the year ended December 31,
2023, we recorded a provision for income taxes of
approximately $7.9 million on the
pre-tax income of $17.6 million
resulting with an annual effective tax rate of 45.0%. The
difference between the effective rate and the Company's statutory
rate relates primarily to the effect of state taxes, uncertain tax
positions, Internal Revenue Code ("IRC") Section 382 adjustments,
and permanent differences associated with non-deductible officer
compensation. For the year ended December
31, 2022, we recorded a provision for income taxes of
approximately $16.4 million on
pre-tax income of $53.1 million
resulting with an annual effective tax rate of 30.9%. This rate
primarily reflects taxes at statutory tax rates, and the impact of
permanent differences associated with non-deductible officer
compensation, and non-taxable PPP Loan income forgiveness. In
general, permanent book to tax differences have a greater impact on
pre-tax income when the income is lower in the given period.
For the three months ended March 31,
2024, we recorded a provision for income taxes of
approximately $2.5 million. This
amount is based on the actual effective tax rate of 23.5%. This
rate includes $0.3 million of
discrete tax benefits primarily related to deferred rate changes.
For the three months ended March 31,
2023, we recorded a benefit from income taxes of
approximately $1.2 million on pre-tax
loss from consolidated operations of approximately $3.6 million which results in an effective tax
rate of 32.5%. This rate includes $0.1
million of discrete tax benefits primarily related to
statutory state tax rate changes.
Other pertinent financial information includes capital
expenditures of approximately $9.1
million and $7.6 million for
the year ended December 31, 2023 and
2022, respectively.
Other pertinent financial information includes capital
expenditures of approximately $1.8
million and $2.0 million for
the three months ended March 31, 2024
and 2023, respectively.
During the year ended December 31,
2023, the Company did not repurchase any shares of Class A
common stock and repurchased 313,272 shares of Class D common stock
in the amount of approximately $1.6
million. During the year ended December 31, 2022, the Company did not repurchase
any shares of Class A common stock and repurchased 5,124,671 shares
of Class D common stock in the amount of approximately $26.5 million.
During the three months ended March 31,
2024, the Company did not repurchase any shares of Class A
common stock and repurchased 396,052 shares of Class D common stock
in the amount of approximately $1.4
million. During the three months ended March 31, 2023, the Company did not repurchase
any shares of Class A common stock and repurchased 256,442 shares
of Class D common stock in the amount of approximately $1.3 million.
Supplemental Financial Information:
For comparative purposes, the following more detailed, unaudited
statements of operations for the year end December 31, 2023 and the three months ended
March 31, 2024 are included.
|
|
|
|
|
Three Months Ended
December 31, 2023
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other
-
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
|
120,344
|
$
|
41,686
|
$
|
10,763
|
$
|
21,159
|
$
|
47,312
|
$
|
(576)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
36,580
|
|
11,135
|
|
4,238
|
|
5,158
|
|
16,373
|
|
(324)
|
|
Selling, general and
administrative
|
|
45,807
|
|
23,342
|
|
2,026
|
|
13,261
|
|
7,381
|
|
(203)
|
|
Corporate selling,
general and administrative
|
|
23,251
|
|
-
|
|
1,185
|
|
-
|
|
2,906
|
|
19,160
|
|
Stock-based
compensation
|
|
2,160
|
|
616
|
|
(180)
|
|
42
|
|
1
|
|
1,681
|
|
Depreciation and
amortization
|
|
810
|
|
977
|
|
42
|
|
275
|
|
42
|
|
(526)
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
|
4,972
|
|
4,972
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
113,580
|
|
41,042
|
|
7,311
|
|
18,736
|
|
26,703
|
|
19,788
|
|
Operating income (loss)
|
|
6,764
|
|
644
|
|
3,452
|
|
2,423
|
|
20,609
|
|
(20,364)
|
|
INTEREST
INCOME
|
|
2,479
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,479
|
|
INTEREST
EXPENSE
|
|
14,173
|
|
56
|
|
-
|
|
-
|
|
-
|
|
14,117
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
OTHER (LOSS) INCOME,
net
|
|
(451)
|
|
14
|
|
-
|
|
-
|
|
-
|
|
(465)
|
|
(Loss) income before
income from consolidated operations before provision for (benefit
from) income taxes
|
|
(5,381)
|
|
602
|
|
3,452
|
|
2,423
|
|
20,609
|
|
(32,467)
|
|
PROVISION FOR INCOME
TAXES
|
|
2,686
|
|
2,598
|
|
1,207
|
|
654
|
|
7,560
|
|
(9,333)
|
|
Net (loss) income from
consolidated operations
|
|
(8,067)
|
|
(1,996)
|
|
2,245
|
|
1,769
|
|
13,049
|
|
(23,134)
|
|
LOSS FROM
UNCONSOLIDATED JOINT VENTURE, net of tax
|
|
(2,403)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,403)
|
|
NET (LOSS)
INCOME
|
|
(10,470)
|
|
(1,996)
|
|
2,245
|
|
1,769
|
|
13,049
|
|
(25,537)
|
|
NET INCOME ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
|
|
515
|
|
-
|
|
-
|
|
-
|
|
-
|
|
515
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(10,985)
|
$
|
(1,996)
|
$
|
2,245
|
$
|
1,769
|
$
|
13,049
|
$
|
(26,052)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
26,447
|
$
|
8,469
|
$
|
3,417
|
$
|
3,518
|
$
|
21,842
|
$
|
(10,799)
|
|
|
|
|
|
Three Months Ended
December 31, 2022
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other
-
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
|
132,566
|
$
|
47,587
|
$
|
11,923
|
$
|
24,171
|
$
|
49,727
|
$
|
(842)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
36,270
|
|
10,898
|
|
4,911
|
|
5,983
|
|
14,868
|
|
(390)
|
|
Selling, general and
administrative
|
|
49,082
|
|
21,470
|
|
2,445
|
|
16,256
|
|
9,404
|
|
(493)
|
|
Corporate selling,
general and administrative
|
|
18,648
|
|
-
|
|
1,419
|
|
-
|
|
3,637
|
|
13,592
|
|
Stock-based
compensation
|
|
4,338
|
|
193
|
|
414
|
|
32
|
|
208
|
|
3,491
|
|
Depreciation and
amortization
|
|
2,643
|
|
934
|
|
45
|
|
328
|
|
994
|
|
342
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
|
10,328
|
|
10,328
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
121,309
|
|
43,823
|
|
9,234
|
|
22,599
|
|
29,111
|
|
16,542
|
|
Operating income (loss)
|
|
11,257
|
|
3,764
|
|
2,689
|
|
1,572
|
|
20,616
|
|
(17,384)
|
|
INTEREST
INCOME
|
|
465
|
|
-
|
|
-
|
|
-
|
|
-
|
|
465
|
|
INTEREST
EXPENSE
|
|
14,628
|
|
50
|
|
-
|
|
76
|
|
1,919
|
|
12,583
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
3,026
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,026
|
|
OTHER INCOME (LOSS),
net
|
|
2,351
|
|
(489)
|
|
-
|
|
266
|
|
-
|
|
2,574
|
|
Income (loss) before
income from consolidated operations before provision for (benefit
from) income taxes
|
|
2,471
|
|
3,225
|
|
2,689
|
|
1,762
|
|
18,697
|
|
(23,902)
|
|
PROVISION FOR (BENEFIT
FROM) INCOME TAXES
|
|
3,615
|
|
11,109
|
|
(227)
|
|
1,448
|
|
489
|
|
(9,204)
|
|
Net (loss) income from
consolidated operations
|
|
(1,144)
|
|
(7,884)
|
|
2,916
|
|
314
|
|
18,208
|
|
(14,698)
|
|
LOSS FROM
UNCONSOLIDATED JOINT VENTURE, net of tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
NET (LOSS)
INCOME
|
|
(1,144)
|
|
(7,884)
|
|
2,916
|
|
314
|
|
18,208
|
|
(14,698)
|
|
NET INCOME ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
|
|
764
|
|
-
|
|
-
|
|
-
|
|
-
|
|
764
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
(1,908)
|
$
|
(7,884)
|
$
|
2,916
|
$
|
314
|
$
|
18,208
|
$
|
(15,462)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
31,328
|
$
|
15,335
|
$
|
3,089
|
$
|
1,933
|
$
|
21,820
|
$
|
(10,849)
|
|
|
|
|
|
Year Ended December 31,
2023
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other
-
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
|
477,690
|
$
|
156,214
|
$
|
52,888
|
$
|
75,495
|
$
|
196,207
|
$
|
(3,114)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
136,884
|
|
43,705
|
|
16,207
|
|
15,490
|
|
62,935
|
|
(1,453)
|
|
Selling, general and
administrative
|
|
172,440
|
|
77,898
|
|
18,747
|
|
40,022
|
|
37,769
|
|
(1,996)
|
|
Corporate selling,
general and administrative
|
|
53,583
|
|
-
|
|
3,196
|
|
3
|
|
7,928
|
|
42,456
|
|
Stock-based
compensation
|
|
9,975
|
|
1,063
|
|
445
|
|
176
|
|
575
|
|
7,716
|
|
Depreciation and
amortization
|
|
7,101
|
|
3,707
|
|
162
|
|
1,352
|
|
1,369
|
|
511
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
|
129,278
|
|
129,278
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
509,261
|
|
255,651
|
|
38,757
|
|
57,043
|
|
110,576
|
|
47,234
|
|
Operating (loss) income
|
|
(31,571)
|
|
(99,437)
|
|
14,131
|
|
18,452
|
|
85,631
|
|
(50,348)
|
|
INTEREST
INCOME
|
|
6,967
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,967
|
|
INTEREST
EXPENSE
|
|
56,196
|
|
222
|
|
-
|
|
-
|
|
2,559
|
|
53,415
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
2,356
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,356
|
|
OTHER INCOME,
net
|
|
96,084
|
|
7
|
|
-
|
|
-
|
|
-
|
|
96,077
|
|
Income (loss) before
income from consolidated operations before provision for (benefit
from) income taxes
|
|
17,640
|
|
(99,652)
|
|
14,131
|
|
18,452
|
|
83,072
|
|
1,637
|
|
PROVISION FOR (BENEFIT
FROM) INCOME TAXES
|
|
7,944
|
|
(21,937)
|
|
3,549
|
|
654
|
|
21,265
|
|
4,413
|
|
Net income (loss) from
consolidated operations
|
|
9,696
|
|
(77,715)
|
|
10,582
|
|
17,798
|
|
61,807
|
|
(2,776)
|
|
LOSS FROM
UNCONSOLIDATED JOINT VENTURE, net of tax
|
|
(5,131)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,131)
|
|
NET INCOME
(LOSS)
|
|
4,565
|
|
(77,715)
|
|
10,582
|
|
17,798
|
|
61,807
|
|
(7,907)
|
|
NET INCOME ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
|
|
2,515
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,515
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
2,050
|
$
|
(77,715)
|
$
|
10,582
|
$
|
17,798
|
$
|
61,807
|
$
|
(10,422)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
128,379
|
$
|
36,071
|
$
|
14,895
|
$
|
20,793
|
$
|
88,764
|
$
|
(32,144)
|
|
|
|
|
|
Year Ended December 31,
2022
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other
-
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
|
484,604
|
$
|
156,678
|
$
|
43,117
|
$
|
78,526
|
$
|
209,871
|
$
|
(3,588)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
122,629
|
|
38,695
|
|
15,752
|
|
15,588
|
|
54,130
|
|
(1,536)
|
|
Selling, general and
administrative
|
|
160,403
|
|
70,472
|
|
8,502
|
|
41,132
|
|
42,385
|
|
(2,088)
|
|
Corporate selling,
general and administrative
|
|
49,854
|
|
-
|
|
3,404
|
|
7
|
|
8,062
|
|
38,381
|
|
Stock-based
compensation
|
|
9,912
|
|
198
|
|
993
|
|
33
|
|
842
|
|
7,846
|
|
Depreciation and
amortization
|
|
10,034
|
|
3,411
|
|
188
|
|
1,323
|
|
3,847
|
|
1,265
|
|
Impairment of goodwill,
intangible assets, and long-lived assets
|
|
40,683
|
|
40,683
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
|
393,515
|
|
153,459
|
|
28,839
|
|
58,083
|
|
109,266
|
|
43,868
|
|
Operating income (loss)
|
|
91,089
|
|
3,219
|
|
14,278
|
|
20,443
|
|
100,605
|
|
(47,456)
|
|
INTEREST
INCOME
|
|
939
|
|
-
|
|
-
|
|
-
|
|
-
|
|
939
|
|
INTEREST
EXPENSE
|
|
61,751
|
|
198
|
|
-
|
|
314
|
|
7,676
|
|
53,563
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
6,718
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,718
|
|
OTHER INCOME (LOSS),
net
|
|
16,083
|
|
(617)
|
|
-
|
|
266
|
|
-
|
|
16,434
|
|
Income (loss) before
income from consolidated operations before provision for (benefit
from) income taxes
|
|
53,078
|
|
2,404
|
|
14,278
|
|
20,395
|
|
92,929
|
|
(76,928)
|
|
PROVISION FOR (BENEFIT
FROM) INCOME TAXES
|
|
16,418
|
|
9,544
|
|
3,746
|
|
1,448
|
|
22,969
|
|
(21,289)
|
|
Net income (loss) from
consolidated operations
|
|
36,660
|
|
(7,140)
|
|
10,532
|
|
18,947
|
|
69,960
|
|
(55,639)
|
|
LOSS FROM
UNCONSOLIDATED JOINT VENTURE, net of tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
NET INCOME
(LOSS)
|
|
36,660
|
|
(7,140)
|
|
10,532
|
|
18,947
|
|
69,960
|
|
(55,639)
|
|
NET INCOME ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
|
|
2,317
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,317
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
34,343
|
$
|
(7,140)
|
$
|
10,532
|
$
|
18,947
|
$
|
69,960
|
$
|
(57,956)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
165,180
|
$
|
47,756
|
$
|
15,399
|
$
|
21,804
|
$
|
105,294
|
$
|
(25,073)
|
|
|
|
|
|
Three Months Ended
March 31, 2024
|
|
|
|
|
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other
-
|
|
|
|
|
|
|
|
Radio
|
|
Reach
|
|
|
|
Cable
|
|
Corporate/
|
|
|
|
|
|
Consolidated
|
Broadcasting
|
Media
|
|
Digital
|
Television
|
Eliminations
|
|
|
|
|
|
|
|
STATEMENT OF
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE
|
$
|
104,410
|
$
|
36,351
|
$
|
8,472
|
$
|
13,968
|
$
|
46,225
|
$
|
(606)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming and
technical
|
|
32,659
|
|
11,329
|
|
3,483
|
|
3,503
|
|
14,600
|
|
(256)
|
|
Selling, general and
administrative
|
|
39,737
|
|
18,396
|
|
2,441
|
|
7,461
|
|
12,117
|
|
(678)
|
|
Corporate selling,
general and administrative
|
|
15,892
|
|
-
|
|
730
|
|
-
|
|
1,908
|
|
13,254
|
|
Stock-based
compensation
|
|
1,384
|
|
122
|
|
29
|
|
41
|
|
561
|
|
631
|
|
Depreciation and
amortization
|
|
1,850
|
|
883
|
|
41
|
|
417
|
|
125
|
|
384
|
|
Total operating
expenses
|
|
91,522
|
|
30,730
|
|
6,724
|
|
11,422
|
|
29,311
|
|
13,335
|
|
Operating income (loss)
|
|
12,888
|
|
5,621
|
|
1,748
|
|
2,546
|
|
16,914
|
|
(13,941)
|
|
INTEREST
INCOME
|
|
1,998
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,998
|
|
INTEREST
EXPENSE
|
|
12,998
|
|
58
|
|
-
|
|
-
|
|
-
|
|
12,940
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
7,874
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7,874
|
|
OTHER INCOME,
net
|
|
886
|
|
-
|
|
-
|
|
-
|
|
-
|
|
886
|
|
Income (loss) from
consolidated operations before provision for (benefit from) income
taxes
|
|
10,648
|
|
5,563
|
|
1,748
|
|
2,546
|
|
16,914
|
|
(16,123)
|
|
PROVISION FOR (BENEFIT
FROM) INCOME TAXES
|
|
2,502
|
|
(2,022)
|
|
548
|
|
(569)
|
|
4,098
|
|
447
|
|
Net income (loss) from
consolidated operations
|
|
8,146
|
|
7,585
|
|
1,200
|
|
3,115
|
|
12,816
|
|
(16,570)
|
|
LOSS FROM
UNCONSOLIDATED JOINT VENTURE, net of tax
|
|
(411)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(411)
|
|
NET INCOME
(LOSS)
|
|
7,735
|
|
7,585
|
|
1,200
|
|
3,115
|
|
12,816
|
|
(16,981)
|
|
NET INCOME ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
|
|
242
|
|
-
|
|
-
|
|
-
|
|
-
|
|
242
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
7,493
|
$
|
7,585
|
$
|
1,200
|
$
|
3,115
|
$
|
12,816
|
$
|
(17,223)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
21,545
|
$
|
6,699
|
$
|
1,809
|
$
|
3,004
|
$
|
17,600
|
$
|
(7,566)
|
|
|
|
|
|
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
|
|
15,941
|
|
2,718
|
|
7,876
|
|
10,817
|
|
(637)
|
|
Corporate selling,
general and administrative
|
|
8,530
|
|
-
|
|
718
|
|
-
|
|
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
|
|
55
|
|
-
|
|
-
|
|
1,919
|
|
12,094
|
|
GAIN ON RETIREMENT OF
DEBT
|
|
2,356
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,356
|
|
OTHER (EXPENSE),
net
|
|
(312)
|
|
|
|
-
|
|
-
|
|
-
|
|
(312)
|
|
(Loss) income from
consolidated operations before (benefit from) provision
for income taxes
|
|
(3,571)
|
|
(9,015)
|
|
3,141
|
|
3,384
|
|
17,410
|
|
(18,491)
|
|
(BENEFIT FROM)
PROVISION FOR INCOME TAXES
|
|
(1,160)
|
|
(1,759)
|
|
744
|
|
-
|
|
4,585
|
|
(4,730)
|
|
Net (loss) income from
consolidated operations
|
|
(2,411)
|
|
(7,256)
|
|
2,397
|
|
3,384
|
|
12,825
|
|
(13,761)
|
|
NET (LOSS)
INCOME
|
|
(2,411)
|
|
(7,256)
|
|
2,397
|
|
3,384
|
|
12,825
|
|
(13,761)
|
|
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
|
$
|
(14,272)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
$
|
30,285
|
$
|
9,022
|
$
|
3,458
|
$
|
3,761
|
$
|
20,622
|
$
|
(6,578)
|
Urban One, Inc. will hold a conference call to discuss its
results for the year end and first fiscal quarter of 2024. The
conference call is scheduled for Monday,
June 10, 2024 at 4:30 p.m.
EDT. To participate on this call, U.S. callers may dial
toll-free 1-844-291-5494; international callers may dial direct
(+1) 409-207-6995. The Access Code is 9666446.
A replay of the conference call will be available from
7:30 p.m. EDT June 10, 2024 until 12:00
a.m. EDT June 17, 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 1372800.
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 June 07, 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, 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": The radio
broadcasting industry commonly refers to "station operating income"
which consists of net income (loss) before depreciation and
amortization, income taxes, interest expense, interest income,
noncontrolling interests in income of subsidiaries, other income,
net, loss from unconsolidated joint venture, corporate selling,
general and administrative expenses, stock-based compensation,
impairment of goodwill, intangible assets, and long-lived assets
and (gain) loss on retirement of debt. However, given the diverse
nature of our business, station operating income is not truly
reflective of our multi-media operation and, therefore, we use the
term "broadcast and digital operating income." Broadcast and
digital operating income is not a measure of financial performance
under GAAP. Nevertheless, broadcast and digital operating income is
a significant measure used by our management to evaluate the
operating performance of our core operating segments. Broadcast and
digital operating income provides helpful information about our
results of operations, apart from expenses associated with our
fixed assets and goodwill, intangible assets, and long-lived
assets, income taxes, investments, impairment charges, debt
financings and retirements, corporate overhead and stock-based
compensation. 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 as used by other companies. Broadcast and digital
operating income does not represent operating income or loss, or
cash flow from operating activities, as those terms are defined
under GAAP, and should not be considered as an alternative to those
measurements as an indicator of our performance.
2 "Adjusted EBITDA: Adjusted EBITDA" consists of net
income (loss) plus (1) depreciation and amortization, income taxes,
interest expense, net income attributable to noncontrolling
interests, impairment of goodwill, intangible assets, and
long-lived assets, stock-based compensation, (gain) loss on
retirement of debt, employment agreement award and other
compensation, corporate development costs, severance-related costs,
investment income, loss from unconsolidated joint venture, less (2)
other income, net 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 GAAP. 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. Accordingly, based on the
previous description of Adjusted EBITDA, we believe that it
provides useful information about the operating performance of our
business, apart from the expenses associated with our fixed assets
and goodwill, intangible assets, and long-lived assets or capital
structure. Adjusted 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 of our operating segments (radio broadcasting, Reach Media,
digital and cable television). Business activities unrelated to
these four segments are included in an "all other" category which
the Company refers to as "All other - corporate/eliminations."
Adjusted EBITDA and EBITDA do not purport to represent operating
income or cash flow from operating activities, as those terms are
defined under GAAP, and should not be considered as alternatives to
those measurements as an indicator of our performance.
3 For the three months ended December 31, 2023 and 2022, Urban One had
47,804,932 and 48,928,063 shares of common stock outstanding on a
weighted average basis (basic), respectively. For the year
ended December 31, 2023 and 2022,
Urban One had 47,645,678 and 48,928,063 shares of common stock
outstanding on a weighted average basis (basic), respectively.
For the three months ended March 31,
2024 and 2023, Urban One had 48,385,386 and 47,320,832
shares of common stock outstanding on a weighted average basis
(basic), respectively.
4 For the three months ended December 31, 2023 and 2022, Urban One had
47,804,932 and 52,174,337 shares of common stock outstanding on a
weighted average basis (fully diluted for outstanding stock
awards), respectively. For the year ended December 31, 2023 and 2022, Urban One had
50,243,810 and 52,174,337 shares of common stock outstanding on a
weighted average basis (fully diluted for outstanding stock
awards), respectively. For the three months ended March 31, 2024 and 2023, Urban One had 49,921,803
and 47,420,832 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.
