Urban One (UONE) Q4 2023 & Q1 2024 earnings summary

Executive summary

• Completed year-end 2023 audit and Q1 2024 results, regaining NASDAQ compliance, with Q1 2024 net income of $7.5 million, reversing a prior-year loss, and Adjusted EBITDA of $21.5 million, down from $30.3 million.

• FY23 net revenue declined 1.4% to $477.7 million, with an operating loss of $31.6 million and net income dropping to $2.1 million; Q1 2024 net revenue was $104.4 million, down 5% year-over-year.

• Political advertising softness, cable TV subscriber churn, and digital segment declines impacted results.

• No M&A planned; focus remains on deleveraging and only pursuing accretive, synergistic deals.

Financial highlights

• Q4 2023 consolidated net revenue was $120.3 million (down 9.2% year-over-year); Q1 2024 net revenue was $104.4 million (down 5%).

• Q4 2023 Adjusted EBITDA was $26.4 million (down 30.5%); Q1 2024 Adjusted EBITDA was $21.5 million (down 28.9%).

• Q4 2023 net loss was $11 million ($0.23/share); Q1 2024 net income was $7.5 million ($0.15/share).

• Operating income for Q1 2024 rose to $12.9 million from $8.1 million year-over-year, aided by a $7.9 million gain on debt retirement.

• Interest expense for Q1 2024 was $13.0 million, down from $14.1 million in Q1 2023.

Outlook and guidance

• 2024 Adjusted EBITDA expected between $110–$120 million, with political ad spend as a key variable.

• Q2 2024 expected to be soft, especially in radio, TV, and digital, but political ad revenue could offset.

• Management expects cash flows from operations, cash on hand, and available credit to be sufficient for foreseeable requirements, but macroeconomic uncertainty may impact revenues.

• Management optimistic about political advertising revenues for the remainder of 2024, benefiting radio and digital divisions.