Urban One(US:UONE)2020-05-28 18:12Financial Data and Key Metrics Changes - Net revenue decreased by 3.6% to approximately $94.9 million for Q1 2020 [21] - Consolidated adjusted EBITDA increased by 16.4% year-over-year to $32.3 million [30] - Net loss was approximately $23.2 million or $0.51 per share, compared to a net loss of approximately $3.1 million or $0.07 per share for Q1 2019 [33] Business Line Data and Key Metrics Changes - Radio segment net revenue decreased by 5% in Q1 2020, with national advertising sales up by 1.9% and local ad sales down by 5.7% [21] - Reach Media's net revenue decreased by 4.1%, but adjusted EBITDA increased by approximately $226,000 year-over-year [22] - Digital segment net revenues decreased by 15.4%, with adjusted EBITDA down by approximately $909,000 due to the absence of major events [22] - Cable television segment revenue was approximately $47.5 million, a decrease of 0.7%, with advertising revenue down by 4.2% [23] Market Data and Key Metrics Changes - Cable subscribers decreased to 51.8 million from 52.2 million at the end of Q4 2019 [24] - The company recorded a 17.2% decrease in income from the MGM National Harbor property due to casino closures [24] Company Strategy and Development Direction - The company aims to continue de-levering and paying down debt, with a focus on maintaining liquidity and cost control [9][14] - Management is exploring opportunities for synergies and potential consolidations in the industry, particularly in radio [15][18] - There is an expectation of increased radio consolidation due to higher leverage in the industry post-COVID [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovery but acknowledged uncertainty regarding the pace of recovery [11][14] - The company has taken measures to ensure compliance with debt covenants and maintain liquidity during the pandemic [8][36] - Management is prepared for potential future challenges, including a possible resurgence of COVID-19 [77][78] Other Important Information - Operating expenses decreased by 12.4% to approximately $65.6 million in Q1 2020 [25] - The company executed a stock-based tax repurchase of approximately $1 million [34] - The company recorded a non-cash impairment charge of approximately $47.7 million for broadcast licenses due to changing market assumptions [32] Q&A Session Summary Question: Concerns about capital structure and refinancing - Management is considering refinancing options and believes the revolver will not be an issue to renew, but the seven and 38 notes due in 2022 may pose challenges [42][44] Question: Cable TV contracted affiliate rates - Contracted affiliate rates are expected to increase annually at a mid-single-digit growth rate [52] Question: Internal risk assessments regarding COVID-19 - The company does not have significant coverage under business interruption policies for the pandemic and is operating under the assumption that it won't be covered [72][75] Question: Political advertising revenue expectations - Management is optimistic about capturing political advertising dollars, despite changes in the political landscape [88][90]