Urban One(US:UONE)2024-08-09 13:09Financial Performance - Net revenues for Q2 2024 were $117.744 million, a decrease of 9.3% from $129.652 million in Q2 2023[12]. - The company reported an operating loss of $60.421 million for Q2 2024, compared to an operating income of $9.655 million in Q2 2023[12]. - Net loss attributable to common stockholders for Q2 2024 was $45.431 million, compared to a net income of $70.366 million in Q2 2023[12]. - For the six months ended June 30, 2024, Urban One experienced a net loss of $37,362,000 compared to a net income of $68,747,000 for the same period in 2023[26]. - The company reported net revenues of $222.154 million for the six months ended June 30, 2024, a decrease of 7.2% compared to $239.521 million for the same period in 2023[107]. Operating Expenses - Total operating expenses increased to $178.165 million in Q2 2024, up 48.5% from $119.997 million in Q2 2023[12]. - Total operating expenses rose to approximately $269.7 million, an increase of $47.9 million or 21.6% from $221.7 million in the previous year[146]. Impairment and Losses - The impairment of goodwill and intangible assets was $80.758 million in Q2 2024, significantly higher than $22.081 million in Q2 2023[12]. - The company recognized an impairment loss of approximately $80.8 million related to broadcasting licenses across nine radio markets for the six months ended June 30, 2024[74]. - The impairment of goodwill and intangible assets increased significantly by 265.7% to $80.758 million from $22.081 million year-over-year[130]. Cash Flow and Assets - The company had cash and cash equivalents of $131,890,000 as of June 30, 2024, down from $233,090,000 at the end of 2023, indicating a decrease of approximately 43.4%[17]. - Total current assets decreased to $308,682,000 as of June 30, 2024, from $421,966,000 as of December 31, 2023, reflecting a decline of approximately 26.7%[17]. - As of June 30, 2024, the company's cash, cash equivalents, and restricted cash balance was approximately $132.4 million, with no borrowings outstanding on the Current ABL Facility, which has a capacity of $50.0 million[173]. Debt and Liabilities - Total liabilities decreased to $771,179,000 as of June 30, 2024, from $920,588,000 as of December 31, 2023, representing a reduction of about 16.2%[17]. - Urban One's long-term debt decreased to $607,865,000 as of June 30, 2024, from $716,246,000 as of December 31, 2023, a reduction of about 15.1%[17]. - The Company had approximately $614.5 million of its 2028 Notes outstanding within its corporate structure[201]. Share Repurchase and Equity - The company repurchased 396,052 shares of Class D common stock during the six months ended June 30, 2024, at a cost of $1,386,000[20]. - The company authorized a share repurchase program to repurchase up to $20.0 million of its outstanding Class A and/or Class D common stock, effective for up to 24 months[96]. - The company repurchased 449,277 shares of Class A Common Stock for approximately $0.9 million at an average price of $2.06 per share during the six months ended June 30, 2024[176]. Revenue Segments - The Radio Broadcasting segment generated net revenues of $78.350 million for the six months ended June 30, 2024, up from $74.376 million in 2023, reflecting a growth of 2.6%[107]. - The Cable Television segment reported net revenues of $87.723 million for the six months ended June 30, 2024, down 14.1% from $102.108 million in 2023[107]. - Digital advertising revenue for the three months ended June 30, 2024, was $15,529 thousand, compared to $18,861 thousand in 2023, representing a decrease of approximately 17.3%[40]. Tax and Benefits - The company recorded a benefit from income taxes of approximately $16.0 million on a pre-tax loss from consolidated operations of approximately $53.0 million for the six months ended June 30, 2024, resulting in an effective tax rate of approximately 30.0%[94]. - The company recorded a benefit from income taxes of approximately $18.5 million for the three months ended June 30, 2024, compared to a provision of $23.2 million in the prior year, reflecting a change of $41.7 million[143]. Market and Strategic Outlook - The company anticipates continued challenges due to economic volatility and increased competition in advertising revenues[7]. - Urban One's strategy includes diversifying revenue streams through acquisitions and investments in complementary media properties[30].