Urban One(US:UONE)2021-05-12 23:45Financial Data and Key Metrics Changes - Net revenue for Q1 2021 was approximately $91.4 million, down 3.6% year-over-year [10] - Adjusted EBITDA for Q1 decreased by 10.6% year-over-year to $28.8 million [21] - Net income was $7,000, compared to a net loss of approximately $23.2 million or $0.51 per share for Q1 2020 [23] - Total gross debt as of March 31, 2021, was $825 million, with a net leverage ratio of 5.71 times [25] Business Line Data and Key Metrics Changes - Core radio revenue, excluding political, was down 13.7% year-over-year, with January down 28.4%, February down 19.9%, and March up 8.8% [10] - Reach Media's net revenue increased by 16.8% in Q1, driven by increased advertiser demand [13] - Digital segment net revenues increased by 64.7% in Q1, contributing to adjusted EBITDA growth of approximately $3.2 million year-over-year [14] - Cable television segment revenue decreased by 2.6% to approximately $46.2 million [15] Market Data and Key Metrics Changes - Cable TV advertising revenue was down 1.6%, and affiliate revenue decreased by 2.8% [15] - Cable subscribers for TV One decreased from 51.4 million at the end of Q4 2020 to 49.4 million at the end of Q1 2021 [15] Company Strategy and Development Direction - The company is optimistic about the full year, anticipating a significant rebound in radio business for Q2 [8] - Urban One is pursuing a $600 million casino resort project in Richmond, Virginia, which could create a significant new revenue stream [32][37] - The management sees a positive advertising climate for African-American owned media companies, with increased commitments from major corporations [27][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the timing of advertising dollars is harder to predict, but there is a robust economy with rising demand [40] - The company is focused on deleveraging and is cautious about financing strategies, emphasizing the importance of maintaining a sustainable leverage ratio [54][104] - Management expressed confidence in achieving EBITDA targets for the full year, contingent on winning the Richmond license [60][121] Other Important Information - The company saved approximately $1 million in employee compensation and $650,000 in travel and office expenses year-over-year [17] - Capital expenditures were approximately $804,000 compared to $1.4 million last year [24] Q&A Session Summary Question: Can you provide an update on Q2 pacing? - Management indicated that Q2 pacing is currently up by more than 70%, with April finishing up about 89% [40][43] Question: What is the status of the Richmond casino project? - The company is in discussions with the city and expects to know the outcome by the end of May or early June [36][72] Question: How do you view the current M&A landscape? - Management believes the company is well-positioned to be a consolidator in the radio space, focusing on creating value through potential asset swaps or acquisitions [108][110] Question: What are the plans for free cash flow? - Management plans to allocate free cash flow towards the Richmond investment or to pay down debt, depending on the outcome of the project [123][126]