Urban One, Inc. (NASDAQ:UONE) Q4 2024 Earnings Conference Call March 27, 2025 10:00 AM ET Company Participants Alfred Liggins - Chief Executive Officer Peter Thompson - Chief Financial Officer Jody Drewer - Executive Vice President & Chief Financial Officer Conference Call Participants Aaron Watts - Deutsche Bank Ben Briggs - StoneX Financial Inc. Marlane Pereiro - Bank of America Securities Hal Steiner - BNP Paribas Matt Swope - Baird Operator Ladies and gentlemen, thank you for standing by and welcome to ...

Financial Performance - For Q4 2024, Urban One, Inc. reported net revenue of approximately $117.1 million, a decrease of 2.7% from Q4 2023's $120.3 million[1]. - The company experienced an operating loss of approximately $1.9 million in Q4 2024, compared to an operating income of approximately $6.8 million in Q4 2023[1]. - Net loss for Q4 2024 was approximately $35.7 million, or $(0.78) per share, compared to a net loss of $11.0 million, or $(0.23) per share, in the same period last year[1]. - Adjusted EBITDA for Q4 2024 was approximately $26.9 million, slightly down from $27.1 million in Q4 2023[1]. - The company reported a net loss attributable to common stockholders of $35,658,000 for the three months ended December 31, 2024, compared to a net loss of $10,985,000 for the same period in 2023[21][23]. - The company reported a total net loss of $104,179,000 for the year ended December 31, 2024, compared to a net loss of $10,470,000 in 2023, highlighting a worsening financial position[24]. Revenue Breakdown - Radio Broadcasting segment revenue increased to approximately $47.7 million, up 14.4% from $41.7 million in Q4 2023, primarily due to increased political revenue[10]. - Political advertising revenue surged to $13.5 million, a 591.9% increase from $1.9 million in Q4 2023[11]. - Digital advertising revenue decreased by 13.2% to approximately $18.1 million from $20.8 million in Q4 2023[11]. - Cable television advertising revenue fell by 21.4% to approximately $21.2 million from $27.0 million in Q4 2023[11]. - Total net revenue for the year ended December 31, 2023, was $477,690,000, with significant contributions from Radio Broadcasting ($156,214,000) and Cable Television ($196,207,000) segments[26]. Operating Expenses - Operating expenses, excluding certain items, were approximately $91.1 million, down from $105.6 million in Q4 2023[12]. - Total operating expenses for the three months ended December 31, 2024, were $118,982,000, compared to $113,580,000 in the same period of 2023, reflecting an increase of 4%[21][23]. - Operating expenses totaled $509,261,000, with the largest components being Selling, General and Administrative expenses ($172,440,000) and Programming and Technical expenses ($136,884,000)[26]. Impairment and Interest Expenses - Impairment of goodwill and intangible assets was approximately $24.2 million in Q4 2024, compared to $5.0 million in Q4 2023[3]. - The impairment of goodwill and intangible assets for the year ended December 31, 2024, was $151,755,000, compared to $4,972,000 in 2023, showing a substantial increase[24]. - Interest expense decreased to approximately $11.5 million from $14.2 million in Q4 2023, following a repurchase of $15.4 million of 2028 Notes[16]. - Interest expense for the year ended December 31, 2024, was $48,571,000, compared to $14,173,000 in 2023, reflecting a significant rise in borrowing costs[24]. - Interest expense for the year was $56,196,000, highlighting the cost of debt management[26]. Strategic Focus and Future Plans - The company is focusing on cost containment and continued de-levering strategies for 2025[1]. - The company plans to focus on market expansion and new product development as part of its future strategy[25]. - Future growth strategies include expanding digital content offerings and enhancing radio programming to better serve the target audience[30]. Market Position - Urban One operates 72 broadcast stations, including 57 FM or AM stations, across 13 urban markets in the U.S.[30]. - The company targets Black Americans and urban consumers, providing a unique advertising platform through its diversified media operations[30].

Revenue Generation - Approximately 35.0% of the company's net revenue for the year ended December 31, 2024, was generated from advertising sales in its core radio business, excluding Reach Media[99] - Seven of the 13 markets where the company operated radio stations accounted for approximately 77.2% of its radio station net revenue for the year ended December 31, 2024[99] - Revenue from Reach Media and the seven significant contributing radio markets accounted for approximately 38.9% of the company's total consolidated net revenue for the year ended December 31, 2024[99] Internal Control and Compliance - The company has identified material weaknesses in its internal control over financial reporting, which could lead to material misstatements in its consolidated financial statements if not remediated[80] - The ongoing remediation of material weaknesses has been time-consuming and expensive, potentially adversely affecting the company's financial position and results of operations[85] - Delayed filings of the 2022 and 2023 annual reports and the first quarter 2024 quarterly report have made the company ineligible to use a registration statement on Form S-3, impacting its ability to raise future capital[86] Economic and Market Risks - The company faces risks related to economic fluctuations, which could negatively impact advertising expenditures and, consequently, its financial condition and results of operations[87] - Inflation may adversely affect the company's liquidity and overall cost structure, potentially impacting its financial condition and results of operations[89] - The company is exposed to credit risk on its accounts receivable, which is heightened during uncertain economic conditions[90] - The company's debt instruments impose operating and financial restrictions that could limit its ability to grow through acquisitions and respond to market conditions[92] - The company faces increased competitive pressures due to consolidation among competitors, which limits the availability of licensable content and may adversely affect financial performance[101] Asset Valuation and Impairment - As of December 31, 2024, the company had approximately $257.8 million in radio broadcasting licenses and $30.0 million in goodwill, totaling $287.7 million, representing about 30.5% of total assets[109] - The company must test its goodwill and indefinite-lived intangible assets for impairment at least annually, with potential impairment resulting from changes in performance or market conditions[110] - Changes in certain events or circumstances could lead to further write-downs of asset values, adversely affecting financial results and ratios[117] Digital Segment and Technology - The company’s Digital segment has seen significant growth, but recent reversals in social justice trends have led to revenue declines, which could negatively impact overall results[106] - The company’s technology infrastructure is vulnerable to cybersecurity risks, which could compromise client information and harm its reputation[119] Regulatory and Operational Risks - The company is required to maintain FCC broadcasting licenses, which are subject to renewal and could be challenged by third parties, potentially affecting operations[118] - The company faces significant risks from technical disruptions, which could negatively impact revenue and harm business operations[122] - Natural disasters and catastrophic events could materially affect the company's ability to conduct business and meet customer demands[123] - Climate change poses risks that could disrupt operations and supply chains, impacting financial performance[124] - Regulatory risks from the FCC's media ownership rules could restrict the company's ability to acquire radio stations, affecting growth opportunities[126] - Enforcement of indecency rules by the FCC could lead to potential fines or license revocation, adversely impacting business operations[127] - Changes in federal regulations regarding royalties could increase operational costs and negatively affect profitability[128] Cable Television and Competition - The company’s Cable Television segment is dependent on affiliation agreements, and loss of these could reduce revenues from subscriber fees and advertising[131] - Emerging competition from digital media providers is impacting audience sizes and subscriber bases, affecting revenue generation[132] Stock and Compliance Issues - The company is classified as a "smaller reporting company," which may make its common stock less attractive to investors due to reduced disclosure requirements[137] - The company has fallen out of compliance with NASDAQ Listing Rule 5250(c) due to delayed filings of periodic financial reports for 2023 and 2024[138] - The company's Class D common stock has closed below the $1.00 minimum bid price requirement for 30 consecutive business days as of February 11, 2025[138] - The company has until August 11, 2025, to regain compliance with the Minimum Bid Price Requirement by maintaining a closing bid price of at least $1.00 for ten consecutive business days[138] - If compliance is not regained, the company may seek additional time by meeting other NASDAQ listing requirements, potentially including a reverse stock split[138] - The company intends to monitor the closing bid price and may seek stockholder approval for a reverse stock split to address the Minimum Bid Price Requirement deficiency[139] - Factors affecting the market price of the company's common stock include low trading volumes, indebtedness, and conditions in the advertising and broadcasting industries[139] - Failure to meet NASDAQ listing requirements could lead to delisting proceedings, adversely affecting liquidity and market price[139]

Revenue Performance - For the three months ended September 30, 2024, net revenues were approximately $110.4 million, a decrease of 6.3% from $117.8 million in the same period of 2023[169]. - Radio advertising revenue for the three months ended September 30, 2024, was $44.99 million, down 3.6% from $46.65 million in the prior year[159]. - Political advertising revenue increased significantly by 222.2%, reaching $3.55 million compared to $1.10 million in the same period last year[159]. - Digital advertising revenue decreased by 4.1%, totaling $19.43 million compared to $20.27 million in the previous year[159]. - Cable television advertising revenue fell by 13.3%, amounting to $21.87 million, down from $25.22 million in the prior year[159]. - Net revenue for the nine months ended September 30, 2024, was approximately $332.5 million, a decrease of $24.8 million or 6.9% compared to $357.3 million for the same period in 2023[187]. - Revenue from the Radio Broadcasting segment increased by approximately $3.5 million to $118.1 million, driven by local political advertising and the acquisition of a Houston station[187]. - Revenue from the Reach Media segment decreased by approximately $4.5 million to $37.6 million, primarily due to decreased demand and advertiser attrition[187]. Operating Expenses and Losses - Total operating expenses decreased by 21.5% to $136.59 million from $173.94 million in the same period last year[167]. - The operating loss for the three months ended September 30, 2024, was $26.20 million, a significant improvement from a loss of $56.11 million in the prior year[167]. - Operating loss for the nine months ended September 30, 2024, was approximately $73.7 million, an increase of $35.4 million or 92.3% compared to a loss of $38.3 million in 2023[187]. - Total operating expenses for the nine months ended September 30, 2024, were approximately $406.3 million, an increase of $10.6 million or 2.7% compared to $395.7 million in 2023[187]. Net Loss and Income - The net loss attributable to common stockholders for the three months ended September 30, 2024, was $31.80 million, compared to a loss of $54.41 million in the same period of 2023, reflecting a 41.6% improvement[167]. - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(31,798) thousand, compared to $(54,411) thousand for the same period in 2023[210]. - Net income attributable to non-controlling interests was approximately $0.3 million for the three months ended September 30, 2024, down 52.1% from $0.7 million in 2023[183]. - Net income attributable to non-controlling interests was approximately $1.0 million for the nine months ended September 30, 2024, down from $2.0 million in 2023, a decrease of 51.2%[200]. Expenses Breakdown - Programming and technical expenses were approximately $33.9 million for both the three months ended September 30, 2024, and 2023, indicating no change[170]. - Selling, general and administrative expenses increased by approximately $1.0 million to $41.1 million for the three months ended September 30, 2024, compared to $40.1 million in the same period of 2023, a rise of 2.4%[172]. - Corporate selling, general and administrative expenses rose by approximately $1.9 million to $12.4 million for the three months ended September 30, 2024, reflecting an increase of 18.6% compared to $10.4 million in 2023[173]. - Stock-based compensation expense decreased by approximately $1.1 million to $1.2 million for the three months ended September 30, 2024, a decline of 48.1% from $2.2 million in 2023[174]. - Depreciation and amortization expense decreased by approximately $0.6 million to $1.2 million for the three months ended September 30, 2024, compared to $1.8 million in 2023[175]. - Selling, general and administrative expenses increased by approximately $4.5 million or 3.6% to $131.1 million, driven by higher payroll and research costs related to the Houston station acquisition[189]. - Stock-based compensation expense decreased by approximately $4.2 million or 53.7% to $3.6 million, primarily due to the timing of vesting of stock awards[191]. Impairment and Gains - Impairment of goodwill and intangible assets was approximately $46.8 million for the three months ended September 30, 2024, down 45.2% from $85.4 million in 2023[176]. - Impairment of goodwill and intangible assets was approximately $127.6 million, an increase of $3.3 million or 2.6% compared to $124.3 million in 2023[193]. - The company recorded a gain on retirement of debt of approximately $3.5 million for the three months ended September 30, 2024, compared to no gain in the same period of 2023[179]. - The company reported a gain on retirement of debt of approximately $18.8 million for the nine months ended September 30, 2024, compared to $2.4 million for the same period in 2023, representing a 696.7% increase[196]. Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash balance was approximately $115.5 million as of September 30, 2024, with no borrowings outstanding on the Current ABL Facility[215]. - Net cash flows provided by operating activities were approximately $1.9 million for the nine months ended September 30, 2024, a decrease from $43.3 million in the same period of 2023[236]. - Net cash flows used in investing activities were approximately $(1.7) million for the nine months ended September 30, 2024, compared to $79.3 million in 2023, primarily driven by the sale of the MGM investment in 2023[238]. - Net cash flows used in financing activities were approximately $(118.2) million for the nine months ended September 30, 2024, compared to $(28.3) million in 2023, including repurchases of approximately $104.8 million of 2028 Notes[239]. Debt and Financing - The company repurchased approximately $125.0 million of its 2028 Notes at an average price of approximately 83.8% of par during the nine months ended September 30, 2024, resulting in a net gain on retirement of debt of approximately $18.8 million[227]. - The Current ABL Facility provides for up to $50.0 million in revolving loan borrowings, with no balance outstanding as of September 30, 2024[228]. - The Company is subject to speculative-grade credit ratings, which may impact borrowing costs and financing availability[240]. - The Company had approximately $600.0 million of 2028 Notes outstanding as of September 30, 2024, with no other indebtedness reported[259]. Impairment Assessments - The Company recognized an impairment loss of approximately $37.7 million associated with 9 radio markets within the Radio Broadcasting segment for the three months ended September 30, 2024[244]. - As of September 30, 2024, the fair value of one reporting unit exceeded its carrying value by less than 10%, indicating potential risk for future impairment assessments[250]. - The Company performed a quantitative impairment assessment for broadcasting licenses, utilizing a discounted cash flow analysis across 13 radio markets[243]. - The Company recorded an impairment charge of $37.7 million for broadcasting licenses and an impairment loss of approximately $9.1 million for the TV One trade name[252][253]. - The discount rate used in the impairment assessment for the TV One trade name was 11.0%, with a revenue growth rate range of (10.3)% to (0.1)% and a terminal growth rate of (1.5)%[255]. Other Financial Information - Total scheduled contractual obligations as of September 30, 2024, amounted to approximately $936.5 million, with $86.3 million not recorded on the balance sheet due to not meeting recognition criteria[268]. - The Company is engaged in ongoing renewal negotiations for performing rights organization licenses, which could impact music license fees[260][261]. - Reach Media increased its ownership interest to 90% after repurchasing 50% of the non-controlling interest shareholders' shares on March 8, 2024[266]. - The fair value of the Employment Agreement Award was estimated at approximately $13.5 million as of September 30, 2024, down from $23.0 million as of December 31, 2023[256]. - The Company has non-cancelable operating leases expiring over the next forty-eight years for various facilities[263]. - The Company entered into a new agreement regarding the Fantastic Voyage effective August 12, 2024, for cruises starting in 2025[269]. - The Company has a letter of credit capacity of up to $5.0 million under the Current ABL Facility, subject to certain limitations[270].

Exhibit 99.1 NEWS RELEASE November 12, 2024 Contact: Peter D. Thompson, EVP and CFO FOR IMMEDIATE RELEASE (301) 429-4638 Silver Spring, MD URBAN ONE, INC. REPORTS THIRD QUARTER 2024 RESULTS Silver Spring, MD: - Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended September 30, 2024. For the three months ended September 30, 2024, net revenues were approximately $110.4 million, a decrease of 6.3% from the same period in 2023. The Company reported operating loss of approxim ...

Financial Data and Key Metrics Changes - Consolidated net revenues decreased by 6.3% year-over-year to approximately $110.4 million for Q3 2024 [9] - Consolidated adjusted EBITDA was $25.4 million, down 26.7% compared to the previous year [16] - Net loss for the quarter was approximately $31.8 million or $0.68 per share, an improvement from a net loss of $54.4 million or $1.20 per share in Q3 2023 [18] - Total gross debt was approximately $600 million, with a net leverage ratio of 4.68x based on $103.7 million of LTM reported adjusted EBITDA [19] Business Line Data and Key Metrics Changes - Radio broadcasting segment net revenue was $39.7 million, a decrease of 1.1% year-over-year, and down 3.6% on a same-station basis [9] - Reach Media segment net revenue was $10.2 million, down 8.2% from the prior year, while adjusted EBITDA increased to $3.7 million from $3.4 million [10] - Digital segment net revenues were flat at $20.4 million, with connected TV and podcast revenue showing growth [11] - Cable TV segment revenues decreased by 13%, with advertising revenue down 13.3% and affiliate revenue down 12.8% [12] Market Data and Key Metrics Changes - Local advertising sales were down 4.7% against markets that were down 5.7%, while national advertising sales decreased by 6.2% against markets that were down 0.6% [10] - Cable subscribers for TV One decreased to 39.1 million from 39.8 million at the end of Q2 2024, with CLEO TV having 37.3 million subscribers [12] Company Strategy and Development Direction - The company is focused on reducing indebtedness, having repurchased $14.5 million of outstanding bonds at 75% of par [7] - A modification of year-end EBITDA guidance from $110 million to a range of $102 million to $105 million was announced due to ongoing weakness in the Cable TV segment [8] Management Comments on Operating Environment and Future Outlook - Management acknowledged continued advertising headwinds in Q3 and forecasted flat revenues for Q4, driven by robust political spending [7] - The company plans to maintain a year-end cash balance of $140 million and continue prudent management towards debt reduction [8] Other Important Information - Operating expenses increased to approximately $87.4 million, up 3.5% from the prior year, primarily due to higher expenses in the Houston radio market and increased professional fees [13] - Noncash impairments of approximately $46.8 million were recorded for broadcasting licenses and trade names due to increased discount rates and projected declines in revenues [17] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded without a detailed Q&A segment [20][21]

"The radio industry is losing one of its giants, and Urban One is bidding farewell to a venerable leader whose passion and vision have helped to shape our industry, guide our company, and serve our growing and diverse audience," said Urban One CEO Alfred Liggins. Kantor became CEO of Urban One's Audio Division in 2015. He oversaw the division's syndication growth, expansion into podcasting, and other new lines of business. He was instrumental in executing the company strategy of acquiring stations in key ma ...

SILVER SPRING, Md., Oct. 25, 2024 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK; UONE) will be holding a conference call for investors, analysts and other interested parties to discuss its results for the third fiscal quarter of 2024. The conference call is scheduled for Thursday, November 7, 2024 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-877- 226-8189; international callers may dial direct (+1) 409-207-6980. The Access Code is 5487822. A replay of the conference cal ...

Urban One, Inc. (UNOE) Q2 2024 Earnings Conference Call August 8, 2024 10:00 AM ET Company Participants Alfred Liggins - Chief Executive Officer Peter Thompson - Chief Financial Officer Jody Drewer - Chief Financial Officer, TV One Conference Call Participants Dominic Laib - Stifel Hal Steiner - BNP Marlene Pereira - BOA James Barten - StoneX Operator Ladies and gentlemen, thank you for standing by, and welcome to Urban One's Second Quarter Earnings Call. All participants are in a listen-only mode, and this ...

Exhibit 99.1 NEWS RELEASE August 8, 2024 Contact: Peter D. Thompson, EVP and CFO FOR IMMEDIATE RELEASE (301) 429-4638 Silver Spring, MD URBAN ONE, INC. REPORTS SECOND QUARTER 2024 RESULTS Silver Spring, MD: - Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for the quarter ended June 30, 2024. For the three months ended June 30, 2024, net revenues were approximately $117.7 million, a decrease of 9.2% from the same period in 2023. The Company reported operating loss of approximately $60.4 ...