UONEK - Earnings call 3 2023

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Operator

Ladies and gentlemen, thank you for standing by.

During this conference call, Urban One will be sharing with you certain projections or other forward-looking statements regarding future events or its future performance. Urban One cautions you that certain factors, including risks and uncertainties referred to in the 10-Ks, 10-Qs and other reports it periodically files with the Securities and Exchange Commission could cause the company's actual results to differ materially from those indicated by its projections or forward-looking statements. This call will present information as of January 11, 2024. Please note that Urban One disclaims any duty to update any forward-looking statements made in the presentation. In this call, Urban One may also discuss some non-GAAP financial measures in talking about its performance. website reconciled or either release, be in be on be of the which available will of found call replay this the its from measures X to call during GAAP course can this p.m. These conference www.urbanX.com. A will at company's press Time, Eastern XX, until XXXX, January p.m. XX:XX XXXX. XX, January dial access XXX-XXXX. the (XXX) Callers (XXX) by may XXX-XXXX or direct calling replay international callers may code is XXXXXXX. access replay The of website the on Access www.urbanX.com. conference will to a live available corporate audio also Urban replay One's at and be call The replay be -- made available X days on for will made the after website the call. copies this relied over or recordings other may the Alfred or to are be No now call turn of call authorized C. upon. I'll Liggins, of joined One, Peter Chief is who Urban Officer D. Executive by Thompson, Chief Financial Officer. Please go ahead.

Alfred Liggins

I Wishart; Chief Officer, Chief and Thank One, are for our our Counsel, the and you, Drewer. Karen operator. Financial Simpson; Officer Jody Chris TV Administrative joining General Also Peter

the end We have before so released the did our quarter year. results, of third

conference And the think So A quarter. as we that's I for well where there. guided of out kind there, of quarter little rest we radio been doing the of we're third to us as for call that's out the be in going bit the as to now. news already were sector the year-end obviously awful

year-end around, radio to radio that going then the Currently we're huge million any But bolstered news today, well. yes, low optimistic station by sector, have wasn't in will, almost But Ours We're but year-end We'll on improving sort with an looks out the for different. Fourth bounces of radio advertising it's it's as Today, pacings third quarter, are 'XX. are of quarter as a that -- $XXX of how holds. X tying if comfortable million. and QX net-net, our In minus you into political into performance and of to political. finish still same in QX. lot top it a substantially line for go bottoming, for $XXX we that as results. Good affirming us, kind that's guidance better, we're upswing we single digits. we ex-political, still pacing with due kind see of local. 'XX we

to So that, back to detail into over going the I'm then come Q&A. him turn numbers, Peter, it with the let and for of we'll get

Peter Thompson

the the minus X.X% Thank with ended we the as by million, sales Miller, was September of down XX% XX.X%. QX down Net $XXX.X expected was XXXX, And broadly about Alfred discussed which was to call. According in approximately that for decrease year-over-year. $XX.X ad last on approximately radio is down earnings Kaplan, XX%; ex-political, year-over-year at our approximately for X.X% down is is were to asset you, were market X.X% same expected QX by be the in. same station, then quarter Alfred. XX%. and down segment On XX% station a radio revenue a XX.X% said, 'XX XX, basis, all down million. Net for ex-political, same-station line And segment to down down be what revenue X% national was the against we our were our against local X.X% sales quarter. market that down

up was million Local of considering rate events where impact recognized expenses did X, being X.X%, the impairments QX. CTV. Cable the Direct million, expenses period $X.X were station offset at kind QX XX.X% about we is was as driven was effective the podcast down related quarter sales last incremental year of of million million unfavorable to a decreased new commission or and streaming currently as had down company. actually while million to Alfred pacings for were adjusted expense. On million we prior $X.X line that as approximately result TV and million, during primarily with National new for X%. $X.X low as amortization, third acquisition, third-party by the the down an advertising million a down pacing basis, quarter, So adjusted rate segment from the in audience September Radio XXXX, QX was had August all down revenue And number stock-based impact were operating year. Operating the very due compared subscribers XX.X% Net $X.X a revenues digital which of to CLEO up largest incurred well Media And revenue segment That were for EBITDA quarter, increase million. And Reach added was X.X% increased $X.X Radio premier of and to expenses the $XXX,XXX by our by XXXX, a $XX.X expenses Reach to by million, tied slightly increase long-live back of the year-over-year. by excluding in of $XX.X expenses million subs. Operating event with programming. Reach spend, TV for from expense variable favorable that broadly digital EBITDA operating of VOD decrease XX of given segment was quarter, segment station end driven QX in was XXXX. increased million addition down expenses $X.X to X.X% million. the sales $XX.X for is for for units by QX year-over-year. compensation expenses. net had and Cable Indianapolis million of at networks television That up revenue and by approximately greater we for X.X% predominantly on revenues Content net expenses X% same-station TV were between $X event promotional million of expenses down for the One, approximately Cable over radio X XX.X%. Houston TV affiliate X.X% expenses revenue by approximately for $XX.X $X.X we eliminations $X.X TV million media expenses, assets, same $X.X and unfavorable our in in higher year. XX%. million approximately X.X%. the down to XX%. the by up. Adjusted Consolidated as up in offset depreciation revenues. added sales digits. that $XX.X hours were a We direct by a X $X.X basis, local advertising compensation deficiency consulting quarter. favorable of -- of original driven order $XX.X EBITDA timing of difference up an $X.X cable from broadly was of for Net said. And of quarter, prior increases reclass million were and expense million talent the in amortization acquisition, Cable comparable were down XXXX of compensation. Operating same-station promoted a plus down, segment And up digital in the million, approximately lower by were was as the churn. revenue expense. was corporate our $X.X X% million, down volume reduction down which million radio, X.X% XX.X Radio in to measured Nielsen, $XXX,XXX also XX.X finished the and single

$XXX.X of million XX, was in X.XXx. And net And $XX.X resulting September of per $XXX total compared net cash total $XXX.X LTM debt to I'll from of for million. a adjusted total assets XXXX, of long-lived Company that, QX, third XX million $X.X to income assets markets. approximately next share million of Indianapolis was unrestricted $X.XX down Ending for with or Alfred. decreased for the expense was leverage million third QX. An of interest of million, broadcast per for to income Pro recorded million $XX $X.X the was cash XX taxes semiannual payments year quarter operating to Houston reported share net $X.XX approximately The intangible income million expenditures debt EBITDA million, quarter, approximately was of for compare in company benefit quarter. And hand forma million. net $XX.X the was debt and approximately to X.XXx. $XX.X million, or cash paid is for For digital made decrease in million and approximately consolidated goodwill, balances. and quarter, of due lower the the last service $XX.X $XX.X in gross radio debt XXXX. Capital the payment a the of acquisitions, approximately income approximately Net loss our as taxes which due the was of and amount ratio overall $X.X from back we the radio approximately $XXX.X $XX.X quarter. XX.X%. Interest impairment million million across leverage were

Alfred Liggins

Peter. you, could Thank to Q&A, the up callers open Operator, it please? for you

Operator

[Operator Steiner Instructions] Hal line comes of Paribas. first question from BNP from the Your

Hal Steiner

radio the to with pacings thing quarter stronger that guide for one thought much to I of have Great see Congratulations I for than affirmation on the out year. in QX coming guess were stuck the line I the the expectations. me expected. would really was

I advertise stronger, reflection willing the and back You a stepping people that is are improving speak my local which fantastic. Is to just being economy to in and really of being And sort that guess we of on political? should should pacing, up sort of X-parter just with year-over-year thinking with that do be for you overall -- be the year that little radio revenue think is again?

Alfred Liggins

recession, all mean look, -- businesses. national, we like I you could across The And that ad mean back. answer of is pulling felt feel an Advertisers to it definitely it I see really I -- 'XX. our yes. that saw We right? we've through I gone would

So to not digital. to television radio them not was of affected one from

doesn't macro there's just there necessarily is because recession economic indeed an So ad recession. mean a

materializes or or recession landing it. soft a you the never call that So to want whatever

bottomed of economic tenor another, move predicting quarter. in I country I'm QX we're like the So trends of good terms from to that, a you whether the going and third more advertising hearing it think in or operators other or I'm have around fourth much business seems in optimistic landing. looks but direction at that of not definitely in better. And why not it feel kind does one out sort soft the

with thought not national we're stuff that's our with So like things starting now. I starting of my pacings for of who And bottomed handles are more there's guess in. maybe to number coming should political Those to -- something right was But ton that I now. that. also a heat up. money see QX in had opinion, $XXX,XXX see sales radio it like. Actually, right what's improving. us. We're it avails political or one what Again, managers feels it of happening out but a my that's is, our political that's are indicative and conversation yes,

So for hopefully, again, for sign to a year. things come good the that's

Hal Steiner

Yes. the I Great. irrefutable. No, absolutely. mean, mean, data itself is I fantastic. certainly that is

on be maybe But of improvement sort will at guess some question sub probably that guidance yet be mean, XXXX, moving little I on pressure year-over-year. that if for think would guys point I mean, that, next certainly, not with sort So out of would with mean, be -- overall, bit TV. would to of 'XX? a there'll anyway, still I the any I I was is, all think my probably year that this I backdrop. I be putting you're it flat guess of some know then to in for disappointed I room EBITDA for but weren't there right you

Alfred Liggins

We're that's are not the with. double-digit headwind, -- single Pay churn you called biggest there you and to ecosystem the and sub Those and TV difficult deal Look, out yet. decline. said

the to give working our seen not we've Honestly, not we're we're but through plant to the going where business, so we're land. prepared in -- budgets. Yes. And radio this as ready stake a still helpful in a to 'XX is to yet. We're to was momentum mindset, number ground

So...

Hal Steiner

I into That performance. size bonds was I XX-Q done, much so the makes conservatism, last back go in of that open now prudent, definitely sense, the last respect and, of buy you talking asking market to just That's and about the yet update to any there's or and Just guess target. I what queue. then I been started said guess, Alfred. before. I paydown, back And the for that's restricted from I And -- X you think in but that. or appreciate you're the the XQ? I'll question any And the just call, that had on I'll so the debt the mean, strong last wanted and doing buyback -- But think anything you'll say, pretty say just if XQ we've until have on posted. you the you

Alfred Liggins

is, now. the yes, active are Yes. market we in answer The

Hal Steiner

That's great. what targeting? could you sizing of Any you the overall think update Great. be on

Alfred Liggins

about think said I kind I of bond like right? I've at kind We -- think before, that our in the talked to I call triangulated. it, we on $XX tranches. tend look of million buybacks

from an of next. in think authorization because we like just amount number to got of debt our Board we the $XX go down I kind for round face terms of to XXX of million

what so we And We've at that's been plan, been tranches what and see authorization. of -- that's of that's We we're that kind did. doing. and And game that's pause where then million our got look of $XX we're kind kind at. and our

So...

Hal Steiner

Great. Congratulations again.

Alfred Liggins

You're welcome. Thanks.

Operator

the of from Bradd Instructions] private you investor. a Kern, a [Operator have line And question

Bradd Kern

And capital was there terms investments. don't you're know sheet. maybe on cash deployment about -- out second there with all, any I getting if use way that of of that. thinking of you First if opportunities was see all, share you're strategic update balance in in there the terms I of wanted on for you're of what can other I'll seeing And the to start

Alfred Liggins

not decisions nothing on strategic We've right we're currently the table. We're at working acquisition. no is There exploring the investment vetted company Yes. not an gotten on being now. --

are out nothing there actionable but figure we active future opportunities, So trying gaming is today. to still in

strategically at distribution the of and And figure businesses. with just operating to cable work puck it, fast. Like I sitting to try there is right next we're changing to so going use That described our good to do And boring, feel to and out Where business? caller's really continue the time. out do we to last is figure the question. one what our we are what number I stuff delevering same What opportunities? take breathing is so these escape that delevering and on and back that's and room capital television where the have now trying

So...

Bradd Kern

And some management-led in a buyout to there. around on selling helpful. that news a previous said hoop And around about That's had Paramount you potentially kind I Okay. Any then December were they're of PET there the in call toxi update? team. was think you

Alfred Liggins

saw it I news I don't that real I mean report. how is. know

working solution. Paramount interested. really I of number it think news seem kind and looks And some they report larger when like of to They a we're respond saw out sort reached people that of hey, like still said, didn't that. on they're

that don't know We there I banks were bid a for. ready of anymore. I and well of lower it. and up to that mean partner and billion to with underwrite great a we they So was had ready couple we had looking equity were that said than go, the up had lined a private lined $X they kind

So our real. bid was

we that, we of we know that all in say I actionable. and that So credible were were and they there be could

to like if credible me surprising kind to calling everybody this were billion going out down of at there people kind it one-off call that didn't and we that decide lower go number no. a they again, opinion, be for do surprising -- my of at, to and be would without just haven't, -- And create it to come $X least was they're they is get to So and reengage. to deal we would tension. If if a some where a sell than

fry, discussion you're there. seems national on something out day don't But take I whether or a the know to they about like going just fish spin I it And got to what's either going BET. trying so right? Skydance like a than not amusements. bigger Redbird yesterday I larger It saw and to out before or feels think

Operator

no time, are there further questions. this [Operator Instructions] And at

Alfred Liggins

year-end thank speaking Well, forward We everybody. call. on with look you to our again you, conference Great.

Operator

and your that Ladies today. and your teleconference. for using conclude gentlemen, does for participation you for conference Thank AT&T

disconnect. now may You

Urban One (UONE) 11 Jan 242023 Q3 Earnings call transcript