EX-99.1 2 uone-20240610xex99d1.htm EX-99.1 Earnings Release

Exhibit 99.1

NEWS RELEASE

June 10, 2024 Contact: Peter D. Thompson, EVP and CFO

FOR IMMEDIATE RELEASE(301) 429-4638

Washington, DC

URBAN ONE, INC. REPORTS YEAR END 2023 AND FIRST QUARTER 2024 RESULTS

Washington, DC: - 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.”

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PAGE 2 & 3 -- URBAN ONE, INC. REPORTS YEAR END 2023 & FIRST QUARTER 2024 RESULTS

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

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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

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PAGE 4 & 5 -- URBAN ONE, INC. REPORTS YEAR END 2023 & FIRST QUARTER 2024 RESULTS

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

-MORE-


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

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PAGE 6 -- URBAN ONE, INC. REPORTS YEAR END 2023 & FIRST QUARTER 2023 RESULTS

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.

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PAGE 7 & 8 -- URBAN ONE, INC. REPORTS YEAR END 2023 & FIRST QUARTER 2024 RESULTS

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%

-MORE-


 

 

Three Months Ended March 31,

 

 

 

 

 

2024

 

2023

 

$ 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%

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PAGE 9 & 10 -- URBAN ONE, INC. REPORTS YEAR END 2023 & FIRST QUARTER 2024 RESULTS

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.

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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.

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PAGE 11 -- URBAN ONE, INC. REPORTS YEAR END 2023 & FIRST QUARTER 2024 RESULTS

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.

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PAGE 12, 13 & 14 -- URBAN ONE, INC. REPORTS YEAR END 2023 & FIRST QUARTER 2024 RESULTS

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)

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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)

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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)

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PAGE 14 -- URBAN ONE, INC. REPORTS YEAR END & FIRST QUARTER 2024 RESULTS

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.