URBAN ONE, INC. REPORTS FIRST AND SECOND QUARTER 2023 RESULTS

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Dec 07, 2023, 06:45 ET

WASHINGTON, Dec. 7, 2023 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK and UONE) today reported its results for both the quarter ended March 31, 2023 and the quarter ended June 30, 2023 as well as for the six month period ended June 30, 2023. For the six month period ended June 30, 2023 net revenue was approximately $239.5 million, an increase of 3.8% from the same period in 2022. The Company reported operating income of approximately $17.8 million for the six months ended June 30, 2023, compared to approximately $61.8 million for the six months ended June 30, 2022. Broadcast and digital operating income¹ was approximately $86.6 million, a decrease of 16.3% from the same period in 2022. Net income was approximately $67.4 million or $1.42 per share (basic) compared to $32.8 million or $0.64 per share (basic) for the same period in 2022. Adjusted EBITDA² was approximately $67.8 million for the six months ended June 30, 2023, compared to approximately $89.5 million for the same period in 2022.

Alfred C. Liggins, III, Urban One's CEO and President stated, "This is our first earnings release since the sale of our MGM National Harbor investment for $136.8 million, and the impact can be seen in both our improved cash balance and the reduction of Adjusted EBITDA. On a same station basis our core radio revenue for the six months, excluding political, was up approximately 1.0%. The additional Indianapolis stations, which we acquired in September 2022, pushed core radio revenues up approximately 10.9%, however margins were down slightly at 26% vs 28% for the first half of 2022. The second half of 2023 will be more heavily affected by the political revenue comps for 2022, and also we are seeing some softening in the radio advertising market generally. In Q1 2023 our cable TV division suffered some ratings and delivery shortfalls, which led to increased audience deficiency units and thus a reduction in advertising revenues. Our ratings have recovered as the year has progressed, and advertising revenues for second and third quarters have been more stable. The linear television business is continuing to experience high rates of subscriber churn, in the high-single-digit percentage range, which we expect to continue for the rest of 2023. The return of Tom Joyner's Fantastic Voyage in Q2 helped boost revenues at Reach Media, and also led to a corresponding increase in SG&A expenses, producing a net contribution of $1.75 million. Digital revenues for the six months increased by approximately 1.8%, but margins were impacted by additional traffic acquisition and content costs. We feel comfortable re-affirming our prior guidance of Adjusted EBITDA in the range $125-128 million."

RESULTS OF OPERATIONS

		Three Months Ended March 31		Three Months Ended June 30,		Six Months Ended June 30,
		2023	2022	2023	2022	2023	2022
STATEMENT OF OPERATIONS		(unaudited)		(unaudited)		(unaudited)
		(in thousands, except share data)		(in thousands, except share data)		(in thousands, except share data)


	NET REVENUE	$ 109,869	$ 112,131	$ 129,652	$ 118,657	$ 239,521	$ 230,788
	OPERATING EXPENSES
	Programming and technical, excluding stock-based compensation	33,854	28,518	32,547	28,351	66,401	56,869
	Selling, general and administrative, excluding stock-based compensation	36,715	35,210	49,777	35,193	86,492	70,403
	Corporate selling, general and administrative, excluding stock-based compensation	8,530	9,413	11,385	12,016	19,915	21,429
	Stock-based compensation	3,278	124	2,321	336	5,598	460
	Depreciation and amortization	2,597	2,405	1,886	2,481	4,483	4,886
	Impairment of goodwill, intangible assets, and long-lived assets	16,775	-	22,081	14,905	38,856	14,905
	Total operating expenses	101,749	75,670	119,997	93,282	221,745	168,952
	Operating income	8,120	36,461	9,655	25,375	17,776 $	61,836 $
	INTEREST INCOME	333	59	1,898	-	2,232	59
	INTEREST EXPENSE	14,068	15,927	13,972	15,886	28,040	31,813
	GAIN ON RETIREMENT OF DEBT	2,356	-	-	1,855	2,356	1,855
	OTHER (EXPENSE) INCOME, NET	(312)	1,986	96,773	9,725	96,460	11,711
	(Loss) income before (benefit from) provision for income taxes and noncontrolling interests in income of subsidiaries	(3,571)	22,579	94,354	21,069	90,784	43,648
	(Benefit from) provision for income taxes	(1,160)	5,465	23,197	4,125	22,037	9,590
	NET (LOSS) INCOME	(2,411)	17,114	71,157	16,944	68,747	34,058
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	511	626	791	650	1,303	1,276
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (2,922)	$ 16,488	$ 70,366	$ 16,294	$ 67,444	$ 32,782

	AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS
	NET INCOME FROM CONTINUING OPERATIONS	$ (2,922)	$ 16,488	$ 70,366	$ 16,294	$ 67,444	$ 32,782
	INCOME FROM DISCONTINUED OPERATIONS, net of tax	-	-	-	-	-	-
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (2,922)	$ 16,488	$ 70,366	$ 16,294	$ 67,444	$ 32,782

	Weighted average shares outstanding - basic³	47,420,832	51,182,831	47,629,163	50,806,346	47,514,722	50,994,612
	Weighted average shares outstanding - diluted⁴	47,420,832	55,097,781	50,616,435	54,658,543	50,373,714	54,871,963

	Three Months Ended March 31,		Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022	2023	2022
PER SHARE DATA - basic and diluted:	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	(in thousands, except per share data)		(in thousands, except per share data)		(in thousands, except per share data)


Net (loss) income attributable to common stockholders (basic)	$ (0.06)	$ 0.32	$ 1.48	$ 0.32	$ 1.42	$ 0.64

Net (loss) income attributable to common stockholders (diluted)	$ (0.06)	$ 0.30	$ 1.39	$ 0.30	$ 1.34	$ 0.60

SELECTED OTHER DATA
Broadcast and digital operating income ¹	$ 39,300	$ 48,403	$ 47,328	$ 55,113	$ 86,628	$ 103,516

Broadcast and digital operating income reconciliation:

Net (loss) income attributable to common stockholders	$ (2,922)	$ 16,488	$ 70,366	$ 16,294	$ 67,444	$ 32,782
Add back non-broadcast and digital operating income items included in net income:
Interest income	$ (333)	(59)	(1,898)	-	(2,232)	(59)
Interest expense	$ 14,068	15,927	13,972	15,886	28,040	31,813
(Benefit from) provision for income taxes	$ (1,160)	5,465	23,197	4,125	22,037	9,590
Corporate selling, general and administrative expenses	$ 8,530	9,413	11,385	12,016	19,915	21,429
Stock-based compensation	$ 3,278	124	2,321	336	5,598	460
Gain on retirement of debt	$ (2,356)	-	-	(1,855)	(2,356)	(1,855)
Other income, net	$ 312	(1,986)	(96,773)	(9,725)	(96,460)	(11,711)
Depreciation and amortization	$ 2,597	2,405	1,886	2,481	4,483	4,886
Noncontrolling interest in income of subsidiaries	$ 511	626	791	650	1,303	1,276
Impairment of long-lived assets	$ 16,775	-	22,081	14,905	38,856	14,905
Broadcast and digital operating income	$ 39,300	$ 48,403	$ 47,328	$ 55,113	$ 86,628	$ 103,516

Adjusted EBITDA²	$ 30,285	$ 42,004	$ 37,504	$ 47,507	$ 67,790	$ 89,512

Adjusted EBITDA reconciliation:

Net (loss) income attributable to common stockholders	$ (2,922)	$ 16,488	$ 70,366	$ 16,294	$ 67,444	$ 32,782
Interest income	(333)	(59)	(1,898)	-	(2,232)	(59)
Interest expense	14,068	15,927	13,972	15,886	28,040	31,813
(Benefit from) provision for income taxes	(1,160)	5,465	23,197	4,125	22,037	9,590
Depreciation and amortization	2,597	2,405	1,886	2,481	4,483	4,886
EBITDA	$ 12,250	$ 40,226	$ 107,523	$ 38,786	$ 119,772	$ 79,012
Stock-based compensation	3,278	124	2,321	336	5,598	460
Gain on retirement of debt	(2,356)	-	-	(1,855)	(2,356)	(1,855)
Other income, net	312	(1,986)	(96,773)	(9,725)	(96,460)	(11,711)
Noncontrolling interest in income of subsidiaries	511	626	791	650	1,303	1,276
Corporate development costs	(376)	334	3,099	1,250	2,723	1,584
Employment Agreement Award and other compensation	(144)	580	(1,674)	903	(1,818)	1,482
Severance-related costs	150	133	136	109	287	242
Investment (expense) income from MGM National Harbor	(115)	1,967	-	2,148	(115)	4,117
Impairment of goodwill, intangible assets, and long-lived assets	16,775	-	22,081	14,905	38,856	14,905
Adjusted EBITDA	$ 30,285	$ 42,004	$ 37,504	$ 47,507	$ 67,790	$ 89,512

		June 30, 2023	March 31, 2023	December 31, 2022
		(unaudited)

		(in thousands)
SELECTED BALANCE SHEET DATA:
	Cash and cash equivalents and restricted cash	$ 231,208	$ 71,931	101,879 $
	Intangible assets, net	715,286	738,896	765,191
	Available-for-sale securities - at fair value	-	136,826	136,826
	Total assets	1,279,847	1,284,471	1,344,646
	Total debt (including current portion, net of issuance costs)	715,204	714,780	739,000
	Total liabilities	924,028	927,778	981,973
	Total stockholders' equity	331,531	331,577	330,750
	Redeemable noncontrolling interests	24,288	25,116	31,923

		June 30, 2023	March 31, 2023	December 31, 2022	Applicable Interest Rate
		(in thousands)
SELECTED LEVERAGE DATA:
	7.375% senior secured notes due February 2028, net of issuance costs of approximately $10.2 million (fixed rate)	$ 715,204	$ 714,780	739,000	7.375 %

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements represent management's current expectations and are based upon information available to Urban One at the time of this release. These forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond Urban One's control, which may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially are described in Urban One's reports on Forms 10-K, 10-K/A, 10-Q, 10-Q/A, 8-K and other filings with the Securities and Exchange Commission (the "SEC"). Urban One does not undertake any duty to update any forward-looking statements.

During the six months ended June 30, 2023, we recognized approximately $239.5 million in net revenue compared to approximately $230.8 million during the six months ended June 30, 2022. We recognized approximately $74.4 million of revenue from our radio broadcasting segment during the six months ended June 30, 2023, compared to approximately $68.7 million for the six months ended June 30, 2022, an increase of approximately $5.7 million, primarily due to the acquisition of three stations in the second half of 2022 in the Indianapolis market and revenue growth in the Atlanta market. Based on reports prepared by Miller Kaplan, the markets we operate in decreased 3.4% in total revenues. Net revenue from our radio broadcasting segment, excluding political advertising, during the six months ended June 30, 2023 increased 10.9% compared to the six months ended June 30, 2022. We recognized approximately $31.0 million of revenue from our Reach Media segment during the six months ended June 30, 2023, compared to approximately $21.1 million for the six months ended June 30, 2022, an increase of approximately $9.9 million. The increase was primarily driven by the addition of the Fantastic Voyage cruise during the second quarter of 2023. We recognized approximately $34.0 million of revenue from our digital segment during the six months ended June 30, 2023, compared to $33.4 million during the six months ended June 30, 2022, an increase of approximately $0.6 million. The increase was primarily driven by higher local radio digital revenues including the acquired Indianapolis stations. We recognized approximately $102.1 million of revenue from our cable television segment during the six months ended June 30, 2023, compared to $109.5 million during the six months ended June 30, 2022, a decrease of approximately $7.4 million. The decrease was primarily driven by lower ratings and decreased advertising sales and affiliate fees.

The following chart indicates the sources of our net revenue for the three months ended March 31, 2023 and 2022, June 30, 2023 and 2022 and for the six months ended June 30, 2023 and 2022:

	Three Months Ended March 31,							Three Months Ended June 30,
	2023		2022		$ Change		% Change	2023		2022		$ Change		% Change
	(Unaudited)							(Unaudited)
	(in thousands)							(in thousands)

Net Revenue:
Radio Advertising	$	43,108	$	39,127	$	3,981	10.2 %	$	45,135	$	44,067	$	1,068	2.4 %
Political Advertising		296		532		(236)	-44.4 %		410		1,686		(1,276)	-75.7 %
Digital Advertising		15,024		15,482		(458)	-3.0 %		18,861		17,881		980	5.5 %
Cable Television Advertising		25,822		30,414		(4,592)	-15.1 %		30,247		29,120		1,127	3.9 %
Cable Television Affiliate Fees		23,837		25,752		(1,915)	-7.4 %		22,184		24,165		(1,981)	-8.2 %
Event Revenues & Other		1,782		824		958	116.3 %		12,815		1,738		11,077	637.3 %

Net Revenue	$	109,869	$	112,131	$	(2,262)	-2.0 %	$	129,652	$	118,657	$	10,995	9.3 %

	Six Months Ended June 30,
	2023		2022		$ Change		% Change
	(Unaudited)
	(in thousands)

Net Revenue:
Radio Advertising	$	88,242	$	83,817	$	4,425	5.3 %
Political Advertising		658		2,199		(1,541)	-70.1 %
Digital Advertising		33,932		33,363		569	1.7 %
Cable Television Advertising		56,069		59,535		(3,466)	-5.8 %
Cable Television Affiliate Fees		46,020		49,917		(3,897)	-7.8 %
Event Revenues & Other		14,600		1,957		12,643	646.0 %

Net Revenue	$	239,521	$	230,788	$	8,733	3.8 %

Operating expenses, excluding depreciation and amortization, stock-based compensation and impairment of long-lived assets, increased to approximately $172.8 million for the six months period ended June 30, 2023, up 16.2% from the approximately $148.7 million incurred for the comparable period in 2022. The overall operating expense increase was driven by higher programming and technical expenses and higher selling, general and administrative expenses, partially offset by lower corporate selling, general and administrative expenses. There was an increase of approximately $8.2 million related to Reach's cruise event, $1.2 million in other radio event expenses, $4.6 million in cable tv content amortization, $5.0 million in employee compensation expenses, $3.8 million in contract labor, talent costs and consulting fees, $2.7 million in corporate professional fees, $2.2 million in variable expenses and $1.0 million in travel, entertainment, marketing and office expenses. These increased expenses were partially offset by a decrease of approximately $3.3 million in Employment Agreement award expenses and a decrease of $1.6 million for corporate business development costs. About $5.9 million of increased expense for the Indianapolis radio acquisition is included in these totals.

Depreciation and amortization expense was approximately $4.5 million for the six months ended June 30, 2023, compared to approximately $4.9 million for the six months ended June 30, 2022, a decrease of approximately $0.4 million. This decrease is due to capitalized assets becoming fully depreciated.

Impairment of goodwill, intangible assets and long-lived assets was approximately $38.9 million during the six months ended June 30, 2023 compared to $15.0 million for the six months ended June 30, 2022, an increase of approximately $23.9 million. The Company recognized a non-cash impairment charge of approximately $16.8 million associated with the sale of the KROI-FM radio broadcasting license during the quarter ended March 31, 2023 and during the quarter ended June 30, 2023, the Company recorded a non-cash impairment charge of approximately $22.1 million for its radio broadcasting licenses primarily in its Philadelphia market.

Interest expense decreased to approximately $28.0 million for the six months ended June 30, 2023, compared to approximately $31.8 million for the six months ended June 30, 2022, a decrease of approximately $3.8 million. The decrease is due to lower overall debt balances outstanding. During the six months ended June 30, 2023, the Company repurchased approximately $25.0 million of its 2028 Notes at an average price of approximately 89.1% of par, resulting in a net gain on retirement of debt of approximately $2.4 million.

Other income, net, was approximately $96.5 million and $11.7 million for the six months ended June 30, 2023 and 2022, respectively. The increase was primarily due to the gain on sale of the Company's investment in MGM of approximately $96.8 million. During the six months ended June 30, 2022, the Company recognized income related to the MGM investment as well as the PPP Loan and related accrued interest that was forgiven.

For the six months ended June 30, 2023, we recorded a provision for income taxes of approximately $22.0 million. This amount is based on the actual effective tax rate of 24.3%. The difference between the effective rate and the Company's statutory rate relates primarily to the effect of state taxes and permanent differences associated with non-deductible officer compensation. The Company also recorded approximately $23.9 million of discrete tax expense related to the gain on sale our MGM investment. For the six months ended June 30, 2022, we recorded a provision for income taxes of approximately $9.6 million. This amount is based on the actual effective tax rate of 22.0%, which includes 3.5% state income tax, 1.3% related to non-deductible goodwill impairment, 1.1% related to officer's compensation, 0.2% other permanently non-deductible expenses. The Company also recorded approximately $2.1 million of discrete tax benefits primarily related to non-taxable income forgiveness of the PPP Loan. The Company paid income taxes of approximately $1.3 million and $698,000 for the six months ended June 30, 2023 and 2022, respectively.

Other pertinent financial information includes capital expenditures of approximately $4.1 million and $3.9 million for the six months ended June 30, 2023 and 2022, respectively.

During the six months ended June 30, 2023, the Company did not repurchase any shares of Class A common stock and repurchased 274,901 shares of Class D common stock in the amount of approximately $1.4 million. During the six months ended June 30, 2022, the Company did not repurchase any shares of Class A common stock and repurchased 4,687,068 shares of Class D common stock in the amount of approximately $24.7 million.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited statements of operations for the three months ended March 31, 2023 and 2022 and June 30, 2023 and 2022 and the six months ended June 30, 2023 and 2022 are included.

				Three Months Ended March 31, 2023
				(in thousands, unaudited)

														All Other -
						Radio		Reach				Cable		Corporate/
				Consolidated		Broadcasting		Media		Digital		Television		Eliminations

STATEMENT OF OPERATIONS:

	NET REVENUE		$	109,869	$	35,180	$	10,917	$	15,071	$	49,677	$	(976)
	OPERATING EXPENSES:
	Programming and technical			33,854		10,331		4,032		3,434		16,440		(383)
	Selling, general and administrative			36,715		15,942		2,718		7,876		10,817		(638)
	Corporate selling, general and administrative			8,530		-		718		0		1,798		6,014
	Stock-based compensation			3,278		176		268		40		328		2,466
	Depreciation and amortization			2,597		917		40		337		965		338
	Impairment of goodwill, intangible assets, and long-lived assets			16,775		16,775		-		-		-		-
	Total operating expenses			101,749		44,140		7,776		11,687		30,348		7,798
	Operating income (loss)			8,120		(8,960)		3,141		3,384		19,329		(8,774)
	INTEREST INCOME			333		-		-		-		-		333
	INTEREST EXPENSE			14,068		56		-		-		1,919		12,094
	GAIN ON SALE OF ASSETS			-		-		-		-		-		-
	GAIN ON RETIREMENT OF DEBT			2,356		-		-		-		-		2,356
	OTHER (EXPENSE), net			(312)		-		-		-		-		(312)
		Income (loss) before (benefit from) provision for income taxes and noncontrolling interests in income of subsidiaries		(3,571)		(9,015)		3,141		3,384		17,410		(18,490)
	PROVISION FOR (BENEFIT FROM) INCOME TAXES			(1,160)		(1,759)		744		-		4,586		(4,730)
		Net (loss) income from continuing operations		(2,411)		(7,256)		2,397		3,384		12,825		(13,760)
	INCOME FROM DISCONTINUED OPERATIONS, net of tax			-		-		-		-		-		-
	NET (LOSS) INCOME			(2,411)		(7,256)		2,397		3,384		12,825		(13,760)
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS			511		-		-		-		-		511
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	(2,922)	$	(7,256)	$	2,397	$	3,384	$	12,825	$	(14,271)

	Adjusted EBITDA²		$	30,285	$	9,022	$	3,458	$	3,761	$	20,622	$	(6,577)

				Three Months Ended March 31, 2022
				(in thousands, unaudited)

														All Other -
						Radio		Reach				Cable		Corporate/
				Consolidated		Broadcasting		Media		Digital		Television		Eliminations

STATEMENT OF OPERATIONS:

	NET REVENUE		$	112,131	$	31,493	$	10,030	$	15,486	$	56,216	$	(1,094)
	OPERATING EXPENSES:
	Programming and technical			28,518		8,876		3,413		3,270		13,341		(382)
	Selling, general and administrative			35,210		14,742		2,106		7,593		11,481		(712)
	Corporate selling, general and administrative			9,413		-		678		1		1,068		7,666
	Stock-based compensation			124		-		-		-		39		85
	Depreciation and amortization			2,405		815		47		333		946		264
	Impairment of goodwill, intangible assets, and long-lived assets			-		-		-		-		-		-
	Total operating expenses			75,670		24,433		6,244		11,197		26,875		6,921
	Operating income (loss)			36,461		7,060		3,786		4,289		29,341		(8,015)
	INTEREST INCOME			59		-		-		-		-		59
	INTEREST EXPENSE			15,927		50		-		79		1,919		13,879
	GAIN ON SALE OF ASSETS			-		-		-		-		-		-
	GAIN ON RETIREMENT OF DEBT			-		-		-		-		-		-
	OTHER INCOME, net			1,986		5		-		-		-		1,981
		Income (loss) before (benefit from) provision for income taxes and noncontrolling interests in income of subsidiaries		22,579		7,015		3,786		4,210		27,422		(19,854)
	PROVISION FOR (BENEFIT FROM) INCOME TAXES			5,465		1,723		932		-		6,747		(3,937)
		Net (loss) income from continuing operations		17,114		5,292		2,854		4,210		20,675		(15,917)
	INCOME FROM DISCONTINUED OPERATIONS, net of tax			-		-		-		-		-		-
	NET (LOSS) INCOME			17,114		5,292		2,854		4,210		20,675		(15,917)
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS			626		-		-		-		-		626
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	16,488	$	5,292	$	2,854	$	4,210	$	20,675	$	(16,543)

	Adjusted EBITDA²		$	42,004	$	7,895	$	3,833	$	4,627	$	30,326	$	(4,677)

				Three Months Ended June 30, 2023
				(in thousands, unaudited)

														All Other -
						Radio		Reach				Cable		Corporate/
				Consolidated		Broadcasting		Media		Digital		Television		Eliminations

STATEMENT OF OPERATIONS:

	NET REVENUE		$	129,652	$	39,196	$	20,052	$	18,908	$	52,430	$	(934)
	OPERATING EXPENSES:
	Programming and technical			32,547		10,525		3,974		3,513		14,919		(383)
	Selling, general and administrative			49,777		18,786		10,857		9,264		11,602		(732)
	Corporate selling, general and administrative			11,385		-		619		-		1,849		8,917
	Stock-based compensation			2,321		114		174		40		231		1,761
	Depreciation and amortization			1,886		888		40		364		251		343
	Impairment of goodwill, intangible assets, and long-lived assets			22,081		22,081		-		-		-		-
	Total operating expenses			119,996		52,393		15,664		13,182		28,852		9,905
	Operating income (loss)			9,655		(13,197)		4,388		5,726		23,578		(10,840)
	INTEREST INCOME			1,898		-		-		-		-		1,898
	INTEREST EXPENSE			13,972		56		-		-		640		13,277
	GAIN ON SALE OF ASSETS			-		-		-		-		-		-
	GAIN ON RETIREMENT OF DEBT			-		-		-		-		-		-
	OTHER INCOME (EXPENSE), net			96,773		(67)		-		-		-		96,840
		Income (loss) before (benefit from) provision for income taxes and noncontrolling interests in income of subsidiaries		94,355		(13,319)		4,388		5,726		22,938		74,621
	PROVISION FOR (BENEFIT FROM) INCOME TAXES			23,197		(5,160)		1,289		-		6,633		20,435
		Net (loss) income from continuing operations		71,158		(8,159)		3,099		5,726		16,305		54,187
	INCOME FROM DISCONTINUED OPERATIONS, net of tax			-		-		-		-		-		-
	NET (LOSS) INCOME			71,158		(8,159)		3,099		5,726		16,305		54,187
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS			791		-		-		-		-		791
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	70,366	$	(8,159)	$	3,099	$	5,726	$	16,305	$	53,395

	Adjusted EBITDA²		$	37,503	$	9,995	$	4,602	$	6,157	$	24,060	$	(7,312)

				Three Months Ended June 30, 2022
				(in thousands, unaudited)

														All Other -
						Radio		Reach				Cable		Corporate/
				Consolidated		Broadcasting		Media		Digital		Television		Eliminations

STATEMENT OF OPERATIONS:

	NET REVENUE		$	118,657	$	37,192	$	11,093	$	17,881	$	53,296	$	(805)
	OPERATING EXPENSES:
	Programming and technical			28,351		9,120		3,727		3,307		12,579		(382)
	Selling, general and administrative			35,193		16,418		1,916		6,904		10,377		(422)
	Corporate selling, general and administrative			12,016		-		636		6		2,156		9,218
	Stock-based compensation			336		(0)		-		-		286		49.61
	Depreciation and amortization			2,481		825		46		332		952		326
	Impairment of goodwill, intangible assets, and long-lived assets			14,905		14,905		-		-		-		-
	Total operating expenses			93,282		41,268		6,325		10,549		26,350		8,790
	Operating income (loss)			25,375		(4,076)		4,768		7,331		26,946		(9,595)
	INTEREST INCOME			-		-		-		-		-		-
	INTEREST EXPENSE			15,886		50		-		79		1,919		13,838
	GAIN ON SALE OF ASSETS			1,855		-		-		-		-		1,855
	GAIN ON RETIREMENT OF DEBT			-		-		-		-		-		-
	OTHER INCOME (EXPENSE), net			9,725		(13)		-		-		-		9,738
		Income (loss) before (benefit from) provision for income taxes and noncontrolling interests in income of subsidiaries		21,069		(4,139)		4,768		7,253		25,027		(11,840)
	PROVISION FOR (BENEFIT FROM) INCOME TAXES			4,125		(6,492)		1,368		-		7,355		1,894
		Net (loss) income from continuing operations		16,944		2,353		3,400		7,253		17,672		(13,734)
	INCOME FROM DISCONTINUED OPERATIONS, net of tax			-		-		-		-		-		-
	NET (LOSS) INCOME			16,944		2,353		3,400		7,253		17,672		(13,734)
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS			650		-		-		-		-		650
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	16,294	$	2,353	$	3,400	$	7,253	$	17,672	$	(14,384)

	Adjusted EBITDA²		$	47,507	$	11,672	$	4,815	$	7,664	$	28,185	$	(4,829)

				Six Months Ended June 30, 2023
				(in thousands, unaudited)

														All Other -
						Radio		Reach				Cable		Corporate/
				Consolidated		Broadcasting		Media		Digital		Television		Eliminations

STATEMENT OF OPERATIONS:

	NET REVENUE		$	239,521	$	74,376	$	30,968	$	33,979	$	102,108	$	(1,910)
	OPERATING EXPENSES:
	Programming and technical			66,401		20,855		8,006		6,947		31,359		(766)
	Selling, general and administrative			86,492		34,727		13,575		17,140		22,420		(1,370)
	Corporate selling, general and administrative			19,915		-		1,337		1		3,647		14,930
	Stock-based compensation			5,598		289		443		80		559		4,227
	Depreciation and amortization			4,483		1,805		79		701		1,216		682
	Impairment of goodwill, intangible assets, and long-lived assets			38,856		38,856		-		-		-		-
	Total operating expenses			221,745		96,532		23,440		24,869		59,201		17,703
	Operating income (loss)			17,776		(22,157)		7,528		9,110		42,908		(19,613)
	INTEREST INCOME			2,232		-		-		-		-		2,232
	INTEREST EXPENSE			28,040		111		-		-		2,559		25,370
	GAIN ON SALE OF ASSETS			-		-		-		-		-		-
	GAIN ON RETIREMENT OF DEBT			2,356		-		-		-		-		2,356
	OTHER INCOME (EXPENSE), net			96,460		(67)		-		-		-		96,527
		Income (loss) before (benefit from) provision for income taxes and noncontrolling interests in income of subsidiaries		90,784		(22,335)		7,528		9,110		40,349		56,132
	PROVISION FOR (BENEFIT FROM) INCOME TAXES			22,037		(6,919)		2,033		-		11,219		15,704
		Net (loss) income from continuing operations		68,748		(15,416)		5,495		9,110		29,130		40,428
	INCOME FROM DISCONTINUED OPERATIONS, net of tax			-		-		-		-		-		-
	NET (LOSS) INCOME			68,748		(15,416)		5,495		9,110		29,130		40,428
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS			1,303		-		-		-		-		1,303
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	67,444	$	(15,416)	$	5,495	$	9,110	$	29,130	$	39,124

	Adjusted EBITDA²		$	67,790	$	19,018	$	8,059	$	9,917	$	44,683	$	(13,887)

				Six Months Ended June 30, 2022
				(in thousands, unaudited)

														All Other -
						Radio		Reach				Cable		Corporate/
				Consolidated		Broadcasting		Media		Digital		Television		Eliminations

STATEMENT OF OPERATIONS:

	NET REVENUE		$	230,788	$	68,684	$	21,123	$	33,367	$	109,513	$	(1,899)
	OPERATING EXPENSES:
	Programming and technical			56,869		17,996		7,140		6,577		25,920		(764)
	Selling, general and administrative			70,403		31,160		4,022		14,497		21,859		(1,135)
	Corporate selling, general and administrative			21,429		-		1,314		7		3,223		16,885
	Stock-based compensation			460		(0)		-		-		325		135
	Depreciation and amortization			4,886		1,640		93		665		1,899		589
	Impairment of goodwill, intangible assets, and long-lived assets			14,905		14,905		-		-		-		-
	Total operating expenses			168,952		65,701		12,569		21,746		53,226		15,710
	Operating income (loss)			61,836		2,983		8,554		11,621		56,287		(17,609)
	INTEREST INCOME			59		-		-		-		-		59
	INTEREST EXPENSE			31,813		99		-		158		3,838		27,718
	GAIN ON SALE OF ASSETS			-		-		-		-		-		-
	GAIN ON RETIREMENT OF DEBT			1,855		-		-		-		-		1,855
	OTHER INCOME (EXPENSE), net			11,711		(8)		-		-		-		11,719
		Income (loss) before (benefit from) provision for income taxes and noncontrolling interests in income of subsidiaries		43,648		2,876		8,554		11,463		52,449		(31,694)
	PROVISION FOR (BENEFIT FROM) INCOME TAXES			9,590		(4,769)		2,300		-		14,102		(2,043)
		Net (loss) income from continuing operations		34,058		7,645		6,254		11,463		38,347		(29,651)
	INCOME FROM DISCONTINUED OPERATIONS, net of tax			-		-		-		-		-		-
	NET (LOSS) INCOME			34,058		7,645		6,254		11,463		38,347		(29,651)
	NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS			1,276		-		-		-		-		1,276
	NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	32,782	$	7,645	$	6,254	$	11,463	$	38,347	$	(30,927)

	Adjusted EBITDA²		$	89,512	$	19,569	$	8,647	$	12,291	$	58,511	$	(9,506)

Urban One, Inc. will hold a conference call to discuss its results for the first and second fiscal quarters of 2023. The conference call is scheduled for Thursday, December 07, 2023 at 10:00 a.m. EST. To participate on this call, U.S. callers may dial toll-free 1-844-721-7241; international callers may dial direct (+1) 409-207-6955. The Access Code is 7824764.

A replay of the conference call will be available from 1:00 p.m. EST December 07, 2023 until 12:00 a.m. EST December 14, 2023. Callers may access the replay by calling 1-866-207-1041; international callers may dial direct (+1) 402-970-0847. The replay Access Code is 3718185.

Access to live audio and a replay of the conference call will also be available on Urban One's corporate website at www.urban1.com. The replay will be made available on the website for seven days after the call.

Urban One Inc. (urban1.com), together with its subsidiaries, is the largest diversified media company that primarily targets Black Americans and urban consumers in the United States. The Company owns TV One, LLC (tvone.tv), a television network serving more than 59 million households, offering a broad range of original programming, classic series and movies designed to entertain, inform, and inspire a diverse audience of adult Black viewers. As of December 01, 2023, we owned and/or operated 72 independently formatted, revenue producing broadcast stations (including 57 FM or AM stations, 13 HD stations, and the 2 low power television stations) branded under the tradename "Radio One" in 13 urban markets in the United States. Through its controlling interest in Reach Media, Inc. (blackamericaweb.com), the Company also operates syndicated programming including the Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. In addition to its radio and television broadcast assets, Urban One owns iOne Digital (ionedigital.com), our wholly owned digital platform serving the African American community through social content, news, information, and entertainment websites, including its Cassius, Bossip, HipHopWired and MadameNoire digital platforms and brands. Through our national multi-media operations, we provide advertisers with a unique and powerful delivery mechanism to the African American and urban audiences.

Notes:

"Broadcast and digital operating income" consists of net (loss) income before depreciation and amortization, corporate selling, general and administrative expenses, stock-based compensation, income taxes, noncontrolling interest in income (loss) of subsidiaries, interest expense, impairment of long-lived assets, other (income) expense, loss (gain) on retirement of debt, gain on sale-leaseback and interest income. Broadcast and digital operating income is not a measure of financial performance under generally accepted accounting principles. Nevertheless, broadcast and digital operating income is a significant measure used by our management to evaluate the operating performance of our core operating segments because broadcast and digital operating income provides helpful information about our results of operations apart from expenses associated with our fixed assets and long-lived intangible assets, income taxes, investments, debt financings and retirements, overhead, stock-based compensation, impairment charges, and asset sales. Our measure of broadcast and digital operating income is similar to industry use of station operating income; however, it reflects our more diverse business and therefore is not completely analogous to "station operating income" or other similarly titled measures used by other companies. Broadcast and digital operating income does not purport to represent operating income or loss, or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as an alternative to those measurements as an indicator of our performance. A reconciliation of net income (loss) to broadcast and digital operating income has been provided in this release.
"Adjusted EBITDA" consists of net income (loss) plus (1) depreciation, amortization, income taxes, interest expense, noncontrolling interest in (loss) income of subsidiaries, impairment of long-lived assets, stock-based compensation, (gain) loss on retirement of debt, gain on sale-leaseback, Employment Agreement and incentive plan award expenses and other compensation, contingent consideration from acquisition, corporate development costs, severance-related costs, cost investment income, less (2) other income and interest income. Net income before interest income, interest expense, income taxes, depreciation and amortization is commonly referred to in our business as "EBITDA." Adjusted EBITDA and EBITDA are not measures of financial performance under generally accepted accounting principles. However, we believe Adjusted EBITDA is often a useful measure of a company's operating performance and is a significant measure used by our management to evaluate the operating performance of our business because Adjusted EBITDA excludes charges for depreciation, amortization and interest expense that have resulted from our acquisitions and debt financing, our taxes, impairment charges, and gain on retirements of debt. Accordingly, we believe that Adjusted EBITDA provides useful information about the operating performance of our business, apart from the expenses associated with our fixed assets and long-lived intangible assets or capital structure. EBITDA is frequently used as one of the measures for comparing businesses in the broadcasting industry, although our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies, including, but not limited to the fact that our definition includes the results of all four segments (radio broadcasting, Reach Media, digital and cable television). Adjusted EBITDA and EBITDA do not purport to represent operating income or cash flow from operating activities, as those terms are defined under generally accepted accounting principles, and should not be considered as alternatives to those measurements as an indicator of our performance. A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA has been provided in this release.
For the three months ended March 31, 2023 and 2022, Urban One had 47,420,832 and 51,182,831 shares of common stock outstanding on a weighted average basis (basic), respectively. For the three months ended June 30, 2023 and 2022, Urban One had 47,629,163 and 50,086,346 shares of common stock outstanding on a weighted average basis (basic), respectively. For the six months ended June 30, 2023 and 2022, Urban One had 47,514,722 and 50,994,612 shares of common stock outstanding on a weighted average basis (basic), respectively.
For the three months ended March 31, 2023 and 2022, Urban One had 47,420,832 and 55,097,781 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the three months ended June 30, 2023 and 2022, Urban One had 50,616,435 and 54,658,543 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively. For the six months ended June 30, 2023 and 2022, Urban One had 50,373,714 and 54,871,963 shares of common stock outstanding on a weighted average basis (fully diluted for outstanding stock awards), respectively.