Urban One(US:UONE)2024-06-11 17:27Financial Data and Key Metrics Changes - Consolidated net revenue for Q4 2023 was approximately $120.3 million, down 9.2% year-over-year [11] - Consolidated net revenue for Q1 2024 was approximately $104.4 million, down 5% year-over-year [16] - Adjusted EBITDA for Q4 2023 was $26.4 million, down 30.5% [28] - Adjusted EBITDA for Q1 2024 was $21.5 million, down 28.9% [28] - Net loss for Q4 2023 was approximately $11 million or $0.23 per share, compared to a net loss of $1.9 million or $0.04 per share for Q4 2022 [32] - Net income for Q1 2024 was approximately $7.5 million or $0.15 per share, compared to a net loss of $2.9 million or $0.06 per share for Q1 2023 [32] Business Line Data and Key Metrics Changes - Radio segment net revenue for Q4 2023 was $41.7 million, a decrease of 12.4% year-over-year [11] - Reach segment net revenue for Q4 2023 was $10.8 million, down 9.7% from the prior year [12] - Digital segment net revenue for Q4 2023 decreased by 12.5% to $21.2 million [13] - Cable television segment revenue for Q4 2023 was approximately $47.3 million, a decrease of 4.9% [13] - Radio segment net revenue for Q1 2024 was $36.4 million, an increase of 3.3% year-over-year [16] - Reach segment net revenue for Q1 2024 was $8.5 million, down 22.4% from the prior year [17] - Digital segment net revenue for Q1 2024 decreased by 7.3% to $14 million [17] - Cable television segment revenue for Q1 2024 was approximately $46.2 million, a decrease of 6.9% [18] Market Data and Key Metrics Changes - Local ad sales were down 6.8% against the market, which was down 7.2% [12] - National ad sales were down 37.2% against the market, which was down 24.5% [12] - In Q1 2024, local ad sales were down 1.9% against the market, which was down 7.9% [16] - National ad sales were down 18% against a market that was down 4.3% [16] Company Strategy and Development Direction - The company aims to manage leverage down and does not have any M&A plans currently, focusing on opportunistic evaluations [36] - The company is looking to consolidate operations in Indianapolis, which is expected to save approximately $1 million annually in operating expenses [46] - The company is budgeting $10 million for political advertising in 2024, which is considered conservative [53] Management's Comments on Operating Environment and Future Outlook - The management noted that the political landscape is expected to be robust, which could positively impact advertising revenue [9] - There is a recognition of a national ad recession affecting traditional media, with a shift towards digital advertising [61] - Management expressed cautious optimism about Q2 2024, acknowledging softness in various segments but highlighting potential political ad revenue [56][57] Other Important Information - The company repurchased approximately 256,000 shares of Class D common stock in Q1 2024 for about $1.3 million [33] - As of March 31, 2024, total gross debt was $650 million, with unrestricted cash of $155.3 million [40] - The company signed an NDA to participate in the process for acquiring Bounce TV, indicating interest in potential synergies [71] Q&A Session Summary Question: What are the expected fixed charges for 2024, specifically CapEx and taxes? - The company expects CapEx to be around $9 million and cash taxes to be approximately $3 million for the year [45] Question: Can you provide insights on the softness in national ad sales? - Management noted that national ad sales have underperformed compared to the market, with some clients not returning at previous volumes [54] Question: How is the company addressing the softness in digital and Reach segments? - Management acknowledged a decline in diversity advertising dollars and a general ad recession impacting performance, with strategies still being developed [62][63] Question: What is the current cash balance and thoughts on potential acquisitions? - The current cash balance is $162.9 million, and the company is exploring acquisition opportunities that provide synergies [72]