In This Article:
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Consolidated Net Revenue: Down 6.3% year over year to approximately $110.4 million.
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Radio Broadcasting Segment Revenue: $39.7 million, a decrease of 1.1% year over year.
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Reach Media Segment Revenue: $10.2 million, down 8.2% from the prior year.
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Digital Segment Revenue: Flat at $20.4 million.
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Cable Television Segment Revenue: $40.7 million, a decrease of 13%.
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Consolidated Adjusted EBITDA: $25.4 million, down 26.7%.
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Net Loss: Approximately $31.8 million or $0.68 per share.
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Operating Expenses: Increased to approximately $87.4 million, up 3.5% from the prior year.
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Interest Expense: Decreased to approximately $11.6 million from $14 million last year.
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Cash Balance: Ending unrestricted cash was $115 million.
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Total Gross Debt: Approximately $600 million.
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Net Debt: Approximately $485 million.
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Net Leverage Ratio: 4.68 times.
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Capital Expenditures: Approximately $1.6 million.
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Share Repurchase: 1,015,023 shares of Class A and 586,989 shares of Class D repurchased.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Urban One Inc (NASDAQ:UONE) successfully repurchased $14.5 million of its outstanding bonds at 75% of par, contributing to debt reduction.
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The company forecasts a year-end cash balance of $140 million, indicating strong cash management.
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Adjusted EBITDA for the reach media segment increased to $3.7 million from $3.4 million last year.
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Interest expense decreased to approximately $11.6 million for Q3, down from $14 million last year due to lower overall debt balances.
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Net loss per share improved to $0.68 compared to $1.20 per share in the third quarter of 2023, showing progress in reducing losses.
Negative Points
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Consolidated net revenues decreased by 6.3% year over year, indicating a decline in overall business performance.
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The cable TV segment experienced a 13% decrease in revenue, with advertising revenue down 13.3%, highlighting ongoing challenges.
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Operating expenses increased by 3.5% from the prior year, driven by higher expenses in the Houston radio market and increased professional fees.
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Consolidated adjusted EBITDA was down 26.7%, reflecting a significant decline in profitability.
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The company recorded $46.8 million in noncash impairments for broadcasting licenses and the TV One trade name, indicating asset value concerns.
Q & A Highlights
Q: Can you provide an overview of Urban One's financial performance for Q3 2024? A: Alfred Liggins, CEO, stated that Urban One faced advertising headwinds in Q3, leading to a decrease in consolidated net revenues by 6.3% year over year, totaling approximately $110.4 million. The company repurchased $14.5 million of outstanding bonds at $0.75 on the dollar and expects Q4 revenues to be flat due to robust political spending. The year-end EBITDA guidance was adjusted from $110 million to a range of $102 million to $105 million.