Urban One(US:UONE)2022-05-07 21:30Financial Data and Key Metrics Changes - The first quarter of 2022 saw consolidated adjusted EBITDA of $42 million, up from $30.2 million in 2021, and $27.7 million in prepandemic 2019 [17] - Revenue increased by 22.9% year-over-year to approximately $112.3 million [17] - Net income was approximately $16.4 million or $0.32 per share compared to $7,000 or $0.00 per share for the first quarter of 2021 [30] Business Line Data and Key Metrics Changes - Net revenue for the radio segment increased by 13.3% year-over-year in Q1 [17] - Digital segment net revenue increased by 49.6% to $15.5 million, with adjusted EBITDA up by 94% [21] - Cable television segment revenue was approximately $56.4 million, a 22% increase, with advertising revenue up 46.9% excluding political [22] Market Data and Key Metrics Changes - Local ad sales in the radio segment, excluding political, were up 14.8%, while national ad sales increased by 6.9% [17] - The entertainment advertising category saw a significant increase of 116% [18] - Cable subscribers for TV One decreased to 46.8 million from 49.3 million at the end of Q4 [23] Company Strategy and Development Direction - The company plans to exceed the high end of its EBITDA guidance for 2022, which is set between $145 million and $150 million [7][33] - The company is optimistic about the second referendum in Richmond, although there are potential legislative hurdles [10][12] - The company is exploring strategic M&A opportunities in the radio business while maintaining a cautious approach to leverage [67] Management's Comments on Operating Environment and Future Outlook - Management noted a moderation in growth rates, particularly in radio, due to economic slowdown and tougher comparisons from the previous year [8][9] - There is uncertainty regarding the macroeconomic environment, but management remains optimistic about the company's performance [9][33] - The company is focused on maintaining strong performance in its digital and cable segments despite challenges in traditional media [55] Other Important Information - Operating expenses increased to approximately $73.3 million in Q1 compared to $65.2 million in Q1 of 2021, driven by various factors including programming content and marketing [24][25] - Total gross debt was reported at $825 million, with a net leverage ratio of 4.07x [31] Q&A Session Summary Question: Clarification on ad environment and pacing - Management indicated that digital pacing is moderating due to strong previous year performance, while radio is experiencing moderation due to economic slowdown [36][37] Question: Share within local marketplace - Management stated they do not have specific data on radio's share versus other media but noted that their national platforms are outperforming traditional terrestrial radio [39][40] Question: Outlook and guidance adjustments - Management chose not to provide a new guidance number due to economic uncertainty but confirmed they expect to exceed previous guidance [43][44] Question: Expected expenses for the second referendum - Management anticipates expenses to increase for the second referendum, potentially exceeding the $4 million spent last year [45][46] Question: Dynamics for TV One - TV One is projected to generate over $100 million in EBITDA, with strong ratings and ad revenue growth expected [54][61]