Urban One(UONE) - 2025 Q1 - Quarterly Results

Part I Financial & Operational Highlights Urban One reported a challenging Q1 2025 with net revenue down 11.7% to $92.2 million, a shift to an $11.7 million net loss, and Adjusted EBITDA declining to $12.9 million, while reaffirming full-year guidance and actively managing debt Q1 2025 Key Financial Metrics (YoY Comparison) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $92.2M | $104.4M | -11.7% | | Operating Income | $2.1M | $12.9M | -83.7% | | Broadcast and digital operating income | $23.0M | $32.0M | -28.1% | | Net (Loss) Income | ($11.7M) | $7.5M | N/A | | Basic (Loss) Earnings Per Share | ($0.26) | $0.15 | N/A | | Adjusted EBITDA | $12.9M | $22.3M | -42.2% | - CEO Commentary: The CEO stated that Q1 results were broadly in line with expectations, with core radio advertising down 12.4%, Cable TV advertising down 6.3%, and digital revenues decreasing by 16.1% due to weakness in streaming and podcasting[1] - Outlook: The company reaffirmed its full-year 2025 guidance of $75 million in Adjusted EBITDA[1] - Capital Management: The company has repurchased $88.6 million in debt so far in 2025, reducing gross debt to $495.9 million, with cash on hand approximately $79.8 million[1] - Strategy: The focus remains on controlling costs, managing leverage, and maintaining a strong liquidity position in a challenging market[1] Consolidated Financial Statements This section presents core financial statements for Q1 2025, detailing a decline in revenue and operating income leading to a net loss, alongside a reduction in total assets, debt, and stockholders' equity on the balance sheet Consolidated Statements of Operations Q1 2025 net revenue declined to $92.2 million, with a $6.4 million impairment charge on intangible assets significantly impacting profitability, resulting in operating income dropping to $2.1 million and a consolidated net loss of $11.7 million Q1 2025 Consolidated Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Revenue | $92,235 | $104,410 | | Total Operating Expenses | $90,137 | $91,522 | | Impairment of Intangible Assets | $6,443 | $0 | | Operating Income | $2,098 | $12,888 | | Gain on Retirement of Debt | $11,587 | $7,874 | | Net (Loss) Income | ($11,739) | $7,735 | | Net (Loss) Income Attributable to Common Stockholders | ($11,742) | $7,493 | Selected Consolidated Balance Sheet Data As of March 31, 2025, the balance sheet reflects decreased cash to $115.6 million and total assets to $890.6 million, with total debt, net of issuance costs, reduced to $551.5 million due to repurchase activities Balance Sheet Data (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $115,568 | $137,574 | | Total assets | $890,551 | $944,790 | | Total debt, net of issuance costs | $551,494 | $579,069 | | Total stockholders' equity | $159,238 | $170,945 | Segment Performance Analysis All operating segments experienced year-over-year declines in Q1 2025 net revenue and Adjusted EBITDA, with Cable Television remaining the largest contributor despite declines, and the company reclassified its CTV offering for segment reporting comparability - Effective January 1, 2025, the company transferred its CTV offering from the Digital segment to the Cable Television segment to better align operations, with prior period segment information reclassified for comparability[3] Segment Net Revenue and Adjusted EBITDA (in thousands) | Segment | Q1 2025 Net Revenue | Q1 2024 Net Revenue | Q1 2025 Adj. EBITDA | Q1 2024 Adj. EBITDA | | :--- | :--- | :--- | :--- | :--- | | Radio Broadcasting | $32,610 | $36,351 | $2,848 | $5,634 | | Reach Media | $5,853 | $8,472 | ($551) | $1,830 | | Digital | $10,212 | $12,189 | $58 | $2,347 | | Cable Television | $44,193 | $48,004 | $18,592 | $19,301 | Detailed Revenue Analysis Total net revenue decreased by 11.7% to $92.2 million in Q1 2025, with broad-based declines across all major revenue streams, including significant drops in political, radio, digital, and cable television advertising and affiliate fees Net Revenue by Source (in thousands) | Revenue Source | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Radio advertising | $36,217 | $41,341 | ($5,124) | (12.4)% | | Political advertising | $150 | $1,237 | ($1,087) | (87.9)% | | Digital advertising | $10,211 | $12,167 | ($1,956) | (16.1)% | | Cable television advertising | $25,425 | $27,144 | ($1,719) | (6.3)% | | Cable television affiliate fees | $18,717 | $20,787 | ($2,070) | (10.0)% | | Total Net Revenue | $92,235 | $104,410 | ($12,175) | (11.7)% | - Radio Broadcasting revenue decreased by $3.8 million, primarily due to weaker national advertiser demand and lower political revenues[10] - Reach Media revenue fell by $2.6 million, driven by lower overall demand and advertiser attrition[10] - Digital revenue declined by $2.0 million, mainly from a decrease in national digital sales[10] - Cable Television revenue dropped by $3.8 million, primarily due to subscriber churn[10] Detailed Financial Analysis The company recorded a $6.4 million impairment charge on radio broadcasting licenses, reduced interest expense by $2.1 million through debt repurchases, bought back Class A and D common stock, and increased capital expenditures to $2.5 million - An impairment loss of $6.4 million was recognized in Q1 2025 related to broadcasting licenses within the Radio Broadcasting segment, driven by declines in projected market revenues and operating profit margins[14] - Interest expense decreased by $2.1 million to $10.9 million, primarily due to debt repurchases, with approximately $28.2 million of its 2028 Notes repurchased during the quarter[16] - During Q1 2025, the company repurchased 449,252 shares of Class A stock for approximately $0.7 million and 303,622 shares of Class D stock for approximately $0.3 million[19] - Capital expenditures were approximately $2.5 million for Q1 2025, an increase from $1.8 million in Q1 2024[18] Non-GAAP Financial Measures & Reconciliations This section reconciles non-GAAP measures like 'Broadcast and digital operating income' and 'Adjusted EBITDA' to Net (loss) income, showing Q1 2025 Adjusted EBITDA at $12.9 million with adjustments for taxes, interest, and debt retirement gains Reconciliation of Net (Loss) Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income attributable to common stockholders | ($11,742) | $7,493 | | Provision for income taxes | 15,658 | 2,502 | | Interest expense | 10,924 | 12,998 | | Depreciation and amortization | 2,315 | 1,850 | | EBITDA | $16,189 | $22,845 | | Stock-based compensation | 676 | 1,384 | | Gain on retirement of debt | (11,587) | (7,874) | | Impairment of intangible assets | 6,443 | — | | Other Adjustments | 388 | 5,400 | | Adjusted EBITDA | $12,857 | $22,257 | Supplemental and Company Information This section provides detailed supplemental financial statements by segment for Q1 2025 and Q1 2024, an overview of Urban One's business as a diversified media company targeting Black Americans, and details for the upcoming investor conference call - The company will hold a conference call to discuss Q1 2025 results on Tuesday, May 13, 2025, at 10:00 a.m. EDT[23] - Urban One is the largest diversified media company primarily targeting Black Americans and urban consumers in the U.S., owning TV One, 72 broadcast stations under "Radio One", Reach Media, and the iOne Digital platform[25] - Supplemental statements of operations provide a detailed breakdown of revenues, expenses, and operating income (loss) for each of the company's four segments plus corporate eliminations for Q1 2025 and the recast Q1 2024[21][22]