Urban One, Inc. (UONE) Q3 2024 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 12 2024
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Should l Buy UONE?
Source: SeekingAlpha
Consolidated Net Revenues $110.4 million, down 6.3% year-over-year due to advertising headwinds.
Net Revenue (Radio Broadcasting Segment) $39.7 million, down 1.1% year-over-year, down 3.6% on a same-station basis, with a 4.8% decline excluding political revenue.
Net Revenue (Reach Media Segment) $10.2 million, down 8.2% year-over-year.
Adjusted EBITDA (Reach Media Segment) $3.7 million, up from $3.4 million last year.
Net Revenue (Digital Segment) $20.4 million, flat year-over-year, with decreased advertiser demand impacting direct national sales.
Adjusted EBITDA (Digital Segment) $6.4 million, down 13.5% year-over-year.
Net Revenue (Cable Television Segment) $40.7 million, down 13% year-over-year, with advertising revenue down 13.3%.
Cable TV Subscriber Count 39.1 million, down from 39.8 million at the end of Q2.
Operating Expenses $87.4 million, up 3.5% year-over-year, primarily due to higher expenses in the Houston radio market and increased professional fees.
Consolidated Adjusted EBITDA $25.4 million, down 26.7% year-over-year.
Consolidated Broadcast and Digital Operating Income $35.4 million, down 19.2% year-over-year.
Interest Income $1.1 million, down from $2.3 million last year due to lower cash balances.
Interest Expense $11.6 million, down from $14 million last year due to lower overall debt balances.
Net Loss $31.8 million, or $0.68 per share, compared to a net loss of $54.4 million, or $1.20 per share, for Q3 2023.
Total Gross Debt Approximately $600 million.
Ending Unrestricted Cash $115 million.
Net Debt Approximately $485 million.
Net Leverage Ratio 4.68x, based on $103.7 million of LTM reported adjusted EBITDA.
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Analyst Views on UONE
About UONE
Urban One, Inc. is an urban-oriented, multi-media company. The Company’s core business is its radio broadcasting franchise, which is a radio broadcasting operation that primarily targets African-American and urban listeners. The Company operates through four segments: Radio Broadcasting, Reach Media, Digital and Cable Television. The Radio Broadcasting segment consists of all radio broadcast results of operations. The Reach Media segment consists of the results of operations for the related activities and operations of the Company’s syndicated radio shows. Digital segment includes the results of the Company’s online business, including the operations of Interactive One, as well as the digital components of the Company’s other reportable segments. The Cable Television segment includes the results of the operations of TV One and CLEO TV. The Company owns and/or operates over 72 independently formatted broadcast stations, located in 13 of the African-American markets in the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Urban One (UONE) Approves 1-for-10 Reverse Stock Split to Meet Nasdaq Compliance
- Reverse Split Decision: Urban One's board has approved a 1-for-10 reverse stock split aimed at helping the company regain compliance with Nasdaq's $1.00 minimum bid price requirement for its Class D common stock, thereby enhancing market confidence.
- Implementation Timeline: The reverse split is expected to take effect at 11:59 p.m. on January 22, 2026, with split-adjusted trading commencing on January 23, ensuring shareholders are promptly informed of the new capital structure.
- Shareholder Rights Protection: Under the reverse split, every 10 shares of Class A and Class D common stock will convert into 1 share of the respective class, with no fractional shares issued, and shareholders will receive cash in lieu based on the closing price on the effective date, safeguarding shareholder interests.
- Market Reaction: Following the announcement, UONEK shares rose by 5.38% to close at $0.875, indicating a positive market response to the reverse split measure, which may help stabilize the company's stock price.
See More
Urban One Approves 10-for-1 Reverse Stock Split to Maintain Nasdaq Listing
- Reverse Stock Split Decision: Urban One's Board has approved a 10-for-1 reverse stock split to comply with Nasdaq's $1 minimum bid price requirement for Class D common stock, ensuring the company's continued listing eligibility.
- Implementation Timeline: The reverse stock split is expected to take effect at 11:59 PM on January 22, 2026, with Class A and Class D common stocks beginning to trade on a split-adjusted basis on January 23, 2026, allowing shareholders to adapt to the new stock price promptly.
- Shareholder Rights Protection: This reverse stock split will uniformly affect all classes of common stock, maintaining shareholders' ownership percentages and voting power, except for minor changes due to fractional share treatment, ensuring no detriment to shareholder interests.
- Company Background: Urban One is the largest diversified media company targeting Black and urban consumers in the U.S., operating 74 broadcast stations and multiple digital platforms, and the reverse stock split is expected to enhance the company's image and attractiveness in the capital markets.
See More
Urban One Announces 10-for-1 Reverse Stock Split to Maintain Nasdaq Listing
- Reverse Split Decision: Urban One's Board has approved a 10-for-1 reverse stock split to meet Nasdaq's minimum $1 bid price requirement for Class D common stock, ensuring the company's continued listing compliance.
- Effective Date: The reverse stock split is expected to take effect at 11:59 PM on January 22, 2026, with Class A and Class D common stocks beginning trading on a split-adjusted basis on January 23, 2026, maintaining liquidity and market stability.
- Shareholder Rights Protection: This reverse stock split will uniformly affect all classes of common stock, ensuring that shareholders' ownership percentages and voting power remain unchanged, except for minor adjustments due to fractional share treatment, thus safeguarding shareholder interests.
- Stable Business Operations: The reverse stock split will not impact the company's underlying business operations or total stockholders' equity, as Urban One continues to focus on delivering diverse media content to Black and urban consumers in the U.S., maintaining its market leadership position.
See More
Urban One Completes Bond Exchange and Purchase, Involving $476 Million
- Successful Bond Exchange: Urban One announced the successful completion of its 7.375% Senior Secured Notes exchange offer, receiving approximately $476 million in valid tenders, indicating strong investor interest in the newly issued 7.625% Second Lien Senior Secured Notes, thereby enhancing the company's capital structure.
- Oversubscription Impact: The $185 million tender offer was oversubscribed, necessitating proration, which reflects positive market sentiment towards Urban One's debt restructuring efforts and aids in improving the company's liquidity.
- New Notes Issuance Plan: The company plans to issue $60.6 million in aggregate principal amount of 10.500% First Lien Senior Secured Notes, which is expected to attract further investor interest, optimizing the capital structure and reducing financing costs.
- Amendment of Covenant Terms: Through a Transaction Support Agreement with Supporting Noteholders, Urban One will amend the existing notes' covenant terms to eliminate most restrictive covenants, enhancing operational flexibility and improving future financing capabilities.
See More
Urban One Completes Bond Exchange and Purchase, Involving $476 Million
- Successful Bond Exchange: Urban One announced the successful completion of its 7.375% Senior Secured Notes exchange offer, receiving approximately $476 million in valid tenders, indicating strong investor interest in the newly issued 7.625% Second Lien Notes, which enhances the company's capital structure.
- Oversubscription Impact: The $185 million tender offer was oversubscribed, necessitating proration, which reflects robust market demand for Urban One's debt and may enhance the company's future financing capabilities.
- New Notes Issuance Plan: The company plans to issue 10.500% First Lien Senior Secured Notes, expected to attract more investors, further optimizing its capital structure and reducing financing costs, thereby enhancing financial flexibility.
- Amendment of Covenant Terms: Through a Transaction Support Agreement with supporting noteholders, Urban One will amend the existing notes' covenant terms to eliminate most restrictive covenants, providing greater flexibility for future merger activities.
See More
Urban One Announces Early Exchange of 7.375% Notes with 92.2% Participation
- Successful Bond Exchange: Urban One announced that as of December 1, 2025, approximately $450 million of its 7.375% Senior Secured Notes were validly tendered, achieving a participation rate of 92.2%, which will significantly improve the company's capital structure and reduce financing costs.
- Oversubscription Impact: The Tender Offer is oversubscribed due to tenders exceeding the $185 million cap, which not only reflects strong market interest in the company's debt restructuring but also enhances future financing flexibility for Urban One.
- New Bond Issuance Plan: The company plans to issue up to $60.6 million in aggregate principal amount of newly issued 10.500% First Lien Senior Secured Notes, which is expected to attract more investor participation and strengthen the company's capital base to support future growth.
- Amendment of Covenant Terms: The company has received the requisite consents from noteholders to amend the existing notes' indenture to eliminate most restrictive covenants, providing greater operational flexibility and reducing future compliance costs for Urban One.
See More
Urban One (UONE) Approves 1-for-10 Reverse Stock Split to Meet Nasdaq Compliance
- Reverse Split Decision: Urban One's board has approved a 1-for-10 reverse stock split aimed at helping the company regain compliance with Nasdaq's $1.00 minimum bid price requirement for its Class D common stock, thereby enhancing market confidence.
- Implementation Timeline: The reverse split is expected to take effect at 11:59 p.m. on January 22, 2026, with split-adjusted trading commencing on January 23, ensuring shareholders are promptly informed of the new capital structure.
- Shareholder Rights Protection: Under the reverse split, every 10 shares of Class A and Class D common stock will convert into 1 share of the respective class, with no fractional shares issued, and shareholders will receive cash in lieu based on the closing price on the effective date, safeguarding shareholder interests.
- Market Reaction: Following the announcement, UONEK shares rose by 5.38% to close at $0.875, indicating a positive market response to the reverse split measure, which may help stabilize the company's stock price.
See More
Urban One Approves 10-for-1 Reverse Stock Split to Maintain Nasdaq Listing
- Reverse Stock Split Decision: Urban One's Board has approved a 10-for-1 reverse stock split to comply with Nasdaq's $1 minimum bid price requirement for Class D common stock, ensuring the company's continued listing eligibility.
- Implementation Timeline: The reverse stock split is expected to take effect at 11:59 PM on January 22, 2026, with Class A and Class D common stocks beginning to trade on a split-adjusted basis on January 23, 2026, allowing shareholders to adapt to the new stock price promptly.
- Shareholder Rights Protection: This reverse stock split will uniformly affect all classes of common stock, maintaining shareholders' ownership percentages and voting power, except for minor changes due to fractional share treatment, ensuring no detriment to shareholder interests.
- Company Background: Urban One is the largest diversified media company targeting Black and urban consumers in the U.S., operating 74 broadcast stations and multiple digital platforms, and the reverse stock split is expected to enhance the company's image and attractiveness in the capital markets.
See More
Urban One Announces 10-for-1 Reverse Stock Split to Maintain Nasdaq Listing
- Reverse Split Decision: Urban One's Board has approved a 10-for-1 reverse stock split to meet Nasdaq's minimum $1 bid price requirement for Class D common stock, ensuring the company's continued listing compliance.
- Effective Date: The reverse stock split is expected to take effect at 11:59 PM on January 22, 2026, with Class A and Class D common stocks beginning trading on a split-adjusted basis on January 23, 2026, maintaining liquidity and market stability.
- Shareholder Rights Protection: This reverse stock split will uniformly affect all classes of common stock, ensuring that shareholders' ownership percentages and voting power remain unchanged, except for minor adjustments due to fractional share treatment, thus safeguarding shareholder interests.
- Stable Business Operations: The reverse stock split will not impact the company's underlying business operations or total stockholders' equity, as Urban One continues to focus on delivering diverse media content to Black and urban consumers in the U.S., maintaining its market leadership position.
See More
Urban One Completes Bond Exchange and Purchase, Involving $476 Million
- Successful Bond Exchange: Urban One announced the successful completion of its 7.375% Senior Secured Notes exchange offer, receiving approximately $476 million in valid tenders, indicating strong investor interest in the newly issued 7.625% Second Lien Senior Secured Notes, thereby enhancing the company's capital structure.
- Oversubscription Impact: The $185 million tender offer was oversubscribed, necessitating proration, which reflects positive market sentiment towards Urban One's debt restructuring efforts and aids in improving the company's liquidity.
- New Notes Issuance Plan: The company plans to issue $60.6 million in aggregate principal amount of 10.500% First Lien Senior Secured Notes, which is expected to attract further investor interest, optimizing the capital structure and reducing financing costs.
- Amendment of Covenant Terms: Through a Transaction Support Agreement with Supporting Noteholders, Urban One will amend the existing notes' covenant terms to eliminate most restrictive covenants, enhancing operational flexibility and improving future financing capabilities.
See More
Urban One Completes Bond Exchange and Purchase, Involving $476 Million
- Successful Bond Exchange: Urban One announced the successful completion of its 7.375% Senior Secured Notes exchange offer, receiving approximately $476 million in valid tenders, indicating strong investor interest in the newly issued 7.625% Second Lien Notes, which enhances the company's capital structure.
- Oversubscription Impact: The $185 million tender offer was oversubscribed, necessitating proration, which reflects robust market demand for Urban One's debt and may enhance the company's future financing capabilities.
- New Notes Issuance Plan: The company plans to issue 10.500% First Lien Senior Secured Notes, expected to attract more investors, further optimizing its capital structure and reducing financing costs, thereby enhancing financial flexibility.
- Amendment of Covenant Terms: Through a Transaction Support Agreement with supporting noteholders, Urban One will amend the existing notes' covenant terms to eliminate most restrictive covenants, providing greater flexibility for future merger activities.
See More
Urban One Announces Early Exchange of 7.375% Notes with 92.2% Participation
- Successful Bond Exchange: Urban One announced that as of December 1, 2025, approximately $450 million of its 7.375% Senior Secured Notes were validly tendered, achieving a participation rate of 92.2%, which will significantly improve the company's capital structure and reduce financing costs.
- Oversubscription Impact: The Tender Offer is oversubscribed due to tenders exceeding the $185 million cap, which not only reflects strong market interest in the company's debt restructuring but also enhances future financing flexibility for Urban One.
- New Bond Issuance Plan: The company plans to issue up to $60.6 million in aggregate principal amount of newly issued 10.500% First Lien Senior Secured Notes, which is expected to attract more investor participation and strengthen the company's capital base to support future growth.
- Amendment of Covenant Terms: The company has received the requisite consents from noteholders to amend the existing notes' indenture to eliminate most restrictive covenants, providing greater operational flexibility and reducing future compliance costs for Urban One.
See More
