Urban One(US:UONE)2024-11-12 21:11Financial Performance - For Q3 2024, Urban One, Inc. reported net revenues of approximately $110.4 million, a decrease of 6.3% from Q3 2023[1] - The operating loss for Q3 2024 was approximately $26.2 million, an improvement from the operating loss of approximately $56.1 million in Q3 2023[1] - Adjusted EBITDA for Q3 2024 was approximately $25.4 million, down from approximately $34.7 million in Q3 2023[1] - The net loss for Q3 2024 was approximately $31.8 million or $(0.68) per share, compared to a net loss of $54.4 million or $(1.14) per share in Q3 2023[1] - Revenue from the Radio Broadcasting segment was approximately $39.7 million in Q3 2024, down from $40.2 million in Q3 2023, primarily due to a decrease in national advertising[7] - The Cable Television segment generated approximately $40.7 million in revenue for Q3 2024, a decrease of approximately $6.1 million from $46.8 million in Q3 2023, attributed to lower audience viewership[7] - The company reported a net loss attributable to common stockholders of $69.7 million, compared to a net loss of $13.0 million in the previous quarter, indicating a significant increase in losses[24][26] Revenue and Expenses - Operating expenses, excluding certain costs, increased by 3.5% to approximately $87.4 million in Q3 2024 from $84.5 million in Q3 2023[10] - Total operating expenses increased to $406.3 million, up from $395.7 million in the previous quarter, marking an increase of approximately 2.6%[24][26] - The company experienced a significant increase in programming and technical expenses, totaling $33,903,000, compared to $33,911,000 in the previous quarter[22] - Selling, general, and administrative expenses were $40,142,000, up from $41,112,000, indicating a slight reduction[20] Cash and Debt Management - The company ended the quarter with approximately $115.5 million in cash, cash equivalents, and restricted cash[2] - Total debt as of September 30, 2024, was approximately $593.9 million, down from $716.2 million as of December 31, 2023[5] - Interest expense decreased to approximately $11.6 million in Q3 2024 from $14.0 million in Q3 2023, as the company repurchased its 2028 Notes, reducing the outstanding balance[14] Impairment and Tax - Impairment of goodwill and intangible assets was approximately $46.8 million in Q3 2024, down from $85.4 million in Q3 2023, due to factors affecting the radio broadcasting segment[12] - The company recorded a benefit from income taxes of approximately $1.8 million in Q3 2024, resulting in an effective tax rate of 5.5%[15] Shareholder Actions - Urban One repurchased 1,015,023 shares of Class A Common Stock for approximately $2.0 million at an average price of $2.01 per share during Q3 2024[17] - For the three months ended September 30, 2024, Urban One had 47,105,290 shares of common stock outstanding on a weighted average basis (basic), compared to 47,722,263 shares for the same period in 2023, indicating a decrease of approximately 1.3%[1] Future Outlook - Future outlook includes continued focus on market expansion and potential new product developments, although specific figures were not disclosed in the call[22] - The company plans to hold a conference call on November 12, 2024, to discuss its results for the third fiscal quarter of 2024[28] Adjusted EBITDA and Financial Metrics - The company made an immaterial change to the definition of adjusted EBITDA by adding back the loss from ceased non-core operations, with all historical periods recasted to reflect this change[1] - Urban One's adjusted EBITDA is a significant measure used by management to evaluate operating performance, although it is not a measure of financial performance under GAAP[1] - The definition of adjusted EBITDA includes results from all four operating segments: Radio Broadcasting, Reach Media, digital, and cable television, which may not be comparable to similarly titled measures of other companies[1] - Urban One's financial metrics provide useful information about the operating performance of the business, apart from expenses associated with fixed assets and goodwill[1]