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Urban One Restates Financials Three Months After Suggesting It Wouldn’t
Media company restates the prior year’s financials after seemingly reassuring investors about its financials.
July 3, 2023
Urban One (UONE), an operator of radio and television stations serving urbanites and African Amerians, made several dozen accounting errors resulting in a restatement of its 2021 financials. The errors impacted all three financial statements and included understating assets and liabilities and overstating sales and profitability.
In restating its financials, Urban One revealed it had:
—Overstated revenue by $1.1 million, or 0.26%
—Overstated operating income by $2.1 million, or 1.8%
—Overstated net income by $1.5 million, or 4%
Urban One blamed the misstatements on its accounting for the valuation of its MGM Investment and a broadcast license impairment.
The restatements were included in Urban One’s belatedly filed annual report. In a filing warning it would not file the report on time due to its auditor needing more time to assess the company’s internal controls, Urban One appears to reassure investors about the validity of its previously filed financials:
“The Company does not anticipate any changes to its previously audited financial statements…”
Urban One also disclosed a myriad control deficiencies including those related to the review of revenue and the preparation of its cash flow statement.
Likewise, the company did not provide annual financial statements to its lender on time as it’s required to do under its ABL facility. The company would have been in default but Bank of America waived the requirement in April 2023.
Five weeks later, Bank of America once again offered Urban One a waiver after the company failed to provide its latest quarterly financial statements. As of this writing, Urban One still has not filed its quarterly report for the three months ended March 31, 2023.
Separately, in September 2022, Urban One awarded equity grants worth millions of dollars to its Board Chairperson and executive officers.
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