Urban One(UONE) - 2023 Q1 - Quarterly Report

Financial Performance - Net revenue for the three months ended March 31, 2023, was approximately $109.9 million, a decrease of 2.0$112.1 million in the same period of 2022[204] - The company experienced a net loss of $2.9 million attributable to common stockholders in Q1 2023, compared to a net income of$16.5 million in Q1 2022, representing a decline of 117.7%[203] - Broadcast and digital operating income decreased to approximately $39.3 million for the three months ended March 31, 2023, down from approximately$48.4 million in 2022, a decrease of 18.8%[227] - Adjusted EBITDA decreased to approximately $30.3 million for the three months ended March 31, 2023, compared to approximately$42.0 million in 2022, a decrease of approximately 28.0%[229] Revenue Segments - The radio broadcasting segment generated $43.1 million in advertising revenue for Q1 2023, an increase of 10.2$39.1 million in Q1 2022[195] - The cable television segment reported a revenue decline to $49.7 million in Q1 2023 from$56.2 million in Q1 2022, a decrease of approximately 11.5%[206] - The Reach Media segment's revenue increased to approximately $10.9 million in Q1 2023, up from$10.0 million in Q1 2022, an increase of approximately 9.0%[205] - Digital segment revenue slightly decreased to $15.1 million in Q1 2023 from$15.5 million in Q1 2022, a decline of approximately 2.6%[207] Expenses - Programming and technical expenses increased by 18.7% to $33.9 million in Q1 2023, up from$28.5 million in Q1 2022[208] - Selling, general and administrative expenses rose to approximately $36.7 million in Q1 2023, an increase of 4.3$35.2 million in Q1 2022[211] - Corporate selling, general and administrative expenses decreased to approximately $8.5 million for the three months ended March 31, 2023, down from$9.4 million in the same period of 2022, representing a decrease of 9.4%[212] - Stock-based compensation expense increased to approximately $3.3 million for the three months ended March 31, 2023, compared to$0.1 million for the same period in 2022, marking an increase of approximately $3.2 million[213] - Depreciation and amortization expense rose to approximately$2.6 million for the three months ended March 31, 2023, up from approximately $2.4 million in 2022, an increase of 8.0$16.8 million in Q1 2023[203] - Impairment of goodwill and intangible assets was approximately $16.8 million for the three months ended March 31, 2023, with no impairment recorded in the same period of 2022, indicating a 100$2.4 million for the three months ended March 31, 2023, compared to $0.0 million in the same period of 2022, reflecting a 100$71.9 million as of March 31, 2023, with no borrowings outstanding on the Current ABL Facility[231] - Net cash flows provided by operating activities increased to $17.1 million in Q1 2023 from$15.5 million in Q1 2022, reflecting a growth of approximately 10.4%[246] - Net cash flows used in investing activities rose significantly to $21.5 million in Q1 2023 from$1.6 million in Q1 2022, primarily due to derecognition of $26.0 million of restricted cash[247] Debt and Obligations - The company repurchased approximately$25.0 million of its 2028 Notes at an average price of 89.1% of par during Q1 2023, resulting in a net gain on retirement of debt of approximately $2.4 million[238] - As of March 31, 2023, the company had approximately$725.0 million of its 2028 Notes outstanding[257] - The company has scheduled contractual obligations totaling $1,205.6 million, with$129.2 million due in the remainder of 2023[262] - The company’s total contractual obligations include $983.4 million related to 7.375$163.4 million as of March 31, 2023, with a risk of impairment if financial performance continues to decline[251] - The company has a letter of credit reimbursement agreement with a capacity of up to $1.2 million, expiring on October 8, 2024[266] - The company’s radio broadcasting licenses expire at various times from October 2027 through August 1, 2030[256] - The company has arrangements with ASCAP, SESAC, and GMR for musical works rights, with a four-year license effective from April 1, 2022, to March 31, 2026[258] Other Financial Information - Other expense was approximately$0.3 million for the three months ended March 31, 2023, compared to other income of approximately $2.0 million in 2022, a decrease of 115.7$1.2 million for the three months ended March 31, 2023, compared to a provision of approximately $5.5 million in 2022, a change of 121.2%[220] - The noncontrolling interest shareholders of Reach Media did not exercise their Put Right for the 30-day period ending January 31, 2023[261] - The company is not aware of any facts that would prevent the renewal of its current radio broadcasting licenses[256]