WASHINGTON, June 10, 2024 /PRNewswire/ -- Urban One, Inc. (NASDAQ:UONEK) 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 ...