Financial 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]. - Basic loss per share for Q2 2024 was $(0.94), down from earnings of $1.48 per share in Q2 2023[13]. - For the three months ended June 30, 2024, Urban One reported a net loss of $45,097,000 compared to a net income of $71,157,000 for the same period in 2023, representing a significant decline[14]. - 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 comprehensive loss attributable to common stockholders for the six months ended June 30, 2024, was $37,938,000, compared to a loss of $5,783,000 for the same period in 2023[14]. - Total current assets decreased from $421,966,000 as of December 31, 2023, to $308,682,000 as of June 30, 2024, reflecting a decline of approximately 26.8%[17]. - Total liabilities decreased from $920,588,000 as of December 31, 2023, to $771,179,000 as of June 30, 2024, a reduction of about 16.2%[17]. - Urban One's accumulated deficit increased to $771,309,000 as of June 30, 2024, compared to $733,371,000 at the end of 2023[18]. Operating Expenses - Total operating expenses increased to $178.165 million in Q2 2024, up 48.5% from $119.997 million in Q2 2023[12]. - The company incurred an impairment of goodwill and intangible assets amounting to $80.758 million in Q2 2024, compared to $22.081 million in Q2 2023[12]. - The company reported a stock-based compensation expense of $1,384,000 for the six months ended June 30, 2024[20]. - The company incurred an impairment of goodwill totaling $80.758 million for the six months ended June 30, 2024, compared to $38.856 million in the same period of 2023[107]. - The impairment of goodwill, intangible assets, and long-lived assets for the three months ended June 30, 2024, was $80.8 million, compared to $22.1 million for the same period in 2023[171]. Cash Flow and Liquidity - 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]. - Cash and cash equivalents decreased to $131,890 thousand as of June 30, 2024, compared to $230,731 thousand at the same time in 2023, a decline of about 42.9%[39]. - Net cash flows provided by operating activities decreased to approximately $3.7 million for the six months ended June 30, 2024, down from $41.8 million in the same period of 2023, primarily due to decreased profitability and lower collections of accounts receivable[187]. - Net cash flows used in investing activities were approximately $(0.3) million for the six months ended June 30, 2024, compared to $113.3 million in 2023, with the prior year benefiting from the sale of the MGM investment[188]. - Net cash flows used in financing activities increased to approximately $(104.6) million for the six months ended June 30, 2024, compared to $(25.7) million in 2023, driven by significant repurchases of 2028 Notes[189]. Debt and Financing - Interest expense for Q2 2024 was $12.404 million, a slight decrease from $13.972 million in Q2 2023[12]. - The company reported a gain on retirement of debt of $7.425 million in Q2 2024, with no such gain reported in Q2 2023[12]. - Long-term debt as of June 30, 2024, was reported at $607.865 million, down from $716.246 million as of December 31, 2023[78]. - The Company expects new accounting standards related to segment reporting and income tax disclosures to impact only its disclosures, with no effect on operations or financial condition[64][65]. - 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]. 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, representing 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]. - The digital segment's net revenues decreased to $29.854 million for the six months ended June 30, 2024, from $33.979 million in 2023, reflecting a decline of 12.2%[107]. - Political advertising revenue increased significantly to $2.152 million, up 424.9% from $410, while digital advertising revenue decreased by 17.7% to $15.529 million[123]. - Revenue from the radio broadcasting segment increased to approximately $42.0 million, up from $39.2 million, primarily due to the Houston station acquisition[132]. Strategic Initiatives - The company is focusing on diversification strategies, including expansion into gaming markets[8]. - Urban One's strategy includes diversifying revenue streams through acquisitions and investments in complementary media properties[30]. - The company has increased its interest in Reach Media to 90% after purchasing a 10% interest for approximately $7.6 million from non-controlling interest shareholders[114]. - The company is currently negotiating with BMI and SESAC for new licensing agreements[113]. Stock Repurchase and Equity - The company repurchased 396,052 shares of Class D common stock during the first half of 2024, resulting in a reduction of $1,386,000 in additional paid-in capital[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]. - During the six months ended June 30, 2024, 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[97]. - The company executed Stock Vest Tax Repurchases of 396,391 shares of Class D Common Stock for approximately $1.3 million at a price of $3.35 per share during the six months ended June 30, 2024[177]. Impairment and Valuation - The company incurred an impairment of goodwill and intangible assets amounting to $80.758 million for the six months ended June 30, 2024[26]. - The Company performed a qualitative impairment assessment for goodwill at four reporting units, with no impairment losses recognized for the period ended June 30, 2024[197]. - The Company recognized an impairment loss of approximately $80.8 million associated with nine radio markets within the radio broadcasting segment during the three and six months ended June 30, 2024[194].
Urban One(UONEK) - 2024 Q2 - Quarterly Report