Beasley Broadcast Group, Inc. (Nasdaq: BBGI) (“Beasley” or the
“Company”), a multi-platform media company, today announced
operating results for the three-month period ended March 31, 2023.
For further information, the Company has posted a presentation to
its website regarding the first quarter highlights and
accomplishments which management will review on today’s conference
call.
Summary of First Quarter
Results
In millions, except per share data |
Three Months EndedMarch 31, |
|
|
2023 |
|
|
2022 |
|
Net revenue |
$57.8 |
|
$55.7 |
|
Operating income (loss) 1 |
|
0.4 |
|
|
(2.7) |
|
Net loss 1 |
|
(3.5) |
|
|
(3.7) |
|
Net loss per diluted share 1 |
($0.12) |
|
($0.13) |
|
Station operating income (SOI - non-GAAP) |
|
7.1 |
|
|
5.9 |
|
1Operating loss, net loss and net loss per
diluted share reflect a $1.9 million non-cash impairment loss in
the three months ended March 31, 2022.
Net revenue during the three months ended March
31, 2023 increased 3.7% to $57.8 million, primarily reflecting a
year-over-year increase in digital revenue, local spot revenue and
network revenue, partially offset by a decrease in national spot
revenue, related to continued softness in the national agency
business.
Beasley reported operating income of $0.4
million in the first quarter of 2023 compared to an operating loss
of $2.7 million in the first quarter of 2022, largely reflecting
the year-over-year increase in net revenue. Operating loss in the
three months ended March 31, 2022 reflects a $1.9 million non-cash
impairment loss related to the sale of WWNN-AM in Boca Raton on
April 1, 2022.
Beasley reported a net loss of $3.5 million, or
$0.12 per diluted share, in the three months ended March 31, 2023,
compared to a net loss of $3.7 million, or $0.13 per diluted share,
in the three months ended March 31, 2022. The year-over-year
improvement was primarily due to higher revenue.
Station operating income (SOI, a non-GAAP
financial measure) increased 21% to $7.1 million in the first
quarter of 2023 compared to SOI of $5.9 million in the first
quarter of 2022. The increase is primarily attributable to
increased net revenue and lower operating expenses as a percentage
of net revenue compared to the prior year period.
Please refer to the “Calculation of Station
Operating Income” and “Reconciliation of Net Loss to Station
Operating Income” tables at the end of this announcement for a
discussion regarding SOI calculations.
Commenting on the financial results, Caroline
Beasley, Chief Executive Officer, said, “Beasley’s strong first
quarter financial operating results highlight our continued local
audio leadership and the ongoing success of our digital
transformation and revenue diversification initiatives which are
driving top-line and SOI growth. Despite ongoing challenges related
to the economy and softness in the national spot market, Beasley
generated healthy growth across its digital, local audio, and
network revenue sources, as reflected by the 3.7% increase in first
quarter net revenues to $57.8 million. Top-line growth was the
primary factor contributing to an impressive 21% year-over-year
increase in SOI to $7.1 million.
“Our digital strategy delivered first quarter
digital revenue growth of 27.8% year-over-year, and accounted for
17.3% of total first quarter revenue. Similar to recent quarters,
strong digital revenue performance was driven by Beasley’s organic
content creation initiatives and the roll-out of our tailored web
services. Beasley continues to see accelerating demand from
consumers for our innovative digital content, with our unique
digital users more than doubling over the prior year quarter,
resulting in a more than 90% year-over-year increase in sellable
digital impressions. We believe we remain on path for this revenue
source to reach 20% of total revenue by 2023 year-end.
“Total outstanding debt as of March 31, 2023 was
$290.0 million, and first quarter interest expense slightly
declined to $6.6 million. Beasley had $35.9 million of cash and
cash equivalents on hand at quarter end. We intend to keep our cash
on the balance sheet in order to maintain our strong liquidity
position, while we monitor the economic environment.
“In summary, the experience of our team and
strong competitive positions in our markets combined with the
meaningful actions we have taken to reduce costs and improve
operating efficiencies was again evident in the strength of our
first quarter results. Looking ahead, while we are hopeful that the
operating environment will improve in the second quarter, we are
closely monitoring the economy.”
Conference Call and Webcast
Information
The Company will host a conference call and
webcast today, April 26, 2023, at 11:00 a.m. ET to discuss its
financial results and operations. To access the conference call,
interested parties may dial 877-407-4018 or 201-689-8471,
conference ID 13738280 (domestic and international callers).
Participants can also listen to a live webcast of the call at the
Company’s website at www.bbgi.com. Please allow 15 minutes to
register and download and install any necessary software. Following
its completion, a replay of the webcast can be accessed for five
days on the Company’s website, www.bbgi.com.
Questions from analysts, institutional investors
and debt holders may be e-mailed to ir@bbgi.com at any time up
until 9:00 a.m. ET on Wednesday, April 26, 2023. Management will
answer as many questions as possible during the conference call and
webcast (provided the questions are not addressed in their prepared
remarks).
About Beasley Broadcast
GroupBeasley Broadcast Group, Inc. (www.bbgi.com) was
founded in 1961 by George G. Beasley and owns 61 AM and FM stations
in 14 large- and mid-size markets in the United States. Beasley
radio stations reach approximately 20 million unique consumers
weekly over-the-air, online and on smartphones and tablets, and
millions regularly engage with the Company’s brands and
personalities through digital platforms such as Facebook, Twitter,
text, apps and email. For more information, please visit
www.bbgi.com.
For further information, or to receive future
Beasley Broadcast Group news announcements via e-mail, please
contact Beasley Broadcast Group, at 239-263-5000 or email@bbgi.com,
or Joseph Jaffoni, JCIR, at 212-835-8500 or bbgi@jcir.com.
DefinitionsStation Operating
Income (SOI) consists of net revenue less station operating
expenses. We define station operating expenses as cost of services
and selling, general and administrative expenses.
SOI is a measure widely used in the radio
broadcast industry. The Company recognizes that because SOI is not
calculated in accordance with GAAP, it is not necessarily
comparable to similarly titled measures employed by other
companies. However, management believes that SOI provides
meaningful information to investors because it is an important
measure of how effectively we operate our business (i.e., as a
multi-platform media company whose primary business is operating
radio stations) and assists investors in comparing our operating
performance with that of other radio companies.
Note Regarding Forward-Looking
StatementsStatements in this release that are
“forward-looking statements” are based upon current expectations
and assumptions, and involve certain risks and uncertainties within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Words or expressions such as “looking ahead,” “intends,”
“believes,” “expects,” “seek,” “will,” “should,” or variations of
such words and similar expressions are intended to identify such
forward-looking statements. Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
Key risks are described in the Company’s reports filed with the
Securities and Exchange Commission (“SEC”) including its annual
report on Form 10-K and quarterly reports on Form 10-Q. Readers
should note that forward-looking statements are subject to change
and to inherent risks and uncertainties and may be impacted by
several factors, including:
- the effects of the COVID-19
pandemic, including its potential effects on the economic
environment and our results of operations, liquidity and financial
condition, and the increased risk of impairments of our Federal
Communications Commission (“FCC”) licenses and/or goodwill;
- external economic forces and
conditions that could have a material adverse impact on our
advertising revenues and results of operations;
- the ability of our stations to
compete effectively in their respective markets for advertising
revenues;
- our ability to develop compelling
and differentiated digital content, products and services;
- audience acceptance of our content,
particularly our audio programs;
- our ability to respond to changes
in technology, standards and services that affect the audio
industry;
- our dependence on federally issued
licenses subject to extensive federal regulation;
- actions by the FCC or new
legislation affecting the audio industry;
- increases to royalties we pay to
copyright owners or the adoption of legislation requiring royalties
to be paid to record labels and recording artists;
- our dependence on selected market
clusters of stations for a material portion of our net
revenue;
- credit risk on our accounts
receivable;
- the risk that our FCC licenses
and/or goodwill could become impaired;
- our substantial debt levels and the
potential effect of restrictive debt covenants on our operational
flexibility and ability to pay dividends;
- the potential effects of hurricanes
on our corporate offices and stations;
- the failure or destruction of the
internet, satellite systems and transmitter facilities that we
depend upon to distribute its programming;
- disruptions or security breaches of
our information technology infrastructure and information
systems;
- the loss of key personnel;
- our ability to integrate acquired
businesses and achieve fully the strategic and financial objectives
related thereto and their impact on our financial condition and
results of operations;
- the fact that our Company is
controlled by the Beasley family, which creates difficulties for
any attempt to gain control of our Company; and
- other economic, business,
competitive, and regulatory factors affecting our businesses,
including those set forth in our filings with the SEC.
Our actual performance and results could differ materially
because of these factors and other factors discussed in our SEC
filings, including but not limited to our annual reports on Form
10-K or quarterly reports on Form 10-Q, copies of which can be
obtained from the SEC, www.sec.gov, or our website, www.bbgi.com.
All information in this release is as of April 26, 2023 and we
undertake no obligation to update the information contained herein
to actual results or changes to our expectations.
BEASLEY BROADCAST GROUP, INC. |
Consolidated Statements of Comprehensive Loss
(Unaudited) |
|
|
|
Three months ended |
|
|
March 31, |
|
|
2023 |
|
|
|
2022 |
|
Net revenue |
$ |
57,779,120 |
|
|
$ |
55,720,268 |
|
Operating expenses: |
|
|
|
|
|
Operating expenses (including stock-based compensation and
excluding depreciation and amortization shown separately
below) |
|
50,653,655 |
|
|
|
49,830,436 |
|
Corporate expenses (including stock-based compensation) |
|
4,483,095 |
|
|
|
4,233,460 |
|
Depreciation and amortization |
|
2,229,325 |
|
|
|
2,515,900 |
|
Impairment loss |
|
- |
|
|
|
1,857,226 |
|
Total operating expenses |
|
57,366,075 |
|
|
|
58,437,022 |
|
Operating income (loss) |
|
413,045 |
|
|
|
(2,716,754 |
) |
Non-operating income
(expense): |
|
|
|
|
|
Interest expense |
|
(6,593,852 |
) |
|
|
(6,849,037 |
) |
Other income, net |
|
540,515 |
|
|
|
872 |
|
Loss before income taxes |
|
(5,640,292 |
) |
|
|
(9,564,919 |
) |
Income tax benefit |
|
(2,163,983 |
) |
|
|
(5,849,318 |
) |
Loss before equity in earnings of unconsolidated affiliates |
|
(3,476,309 |
) |
|
|
(3,715,601 |
) |
Equity in earnings of
unconsolidated affiliates, net of tax |
|
(60,257 |
) |
|
|
(23,344 |
) |
Net loss |
$ |
(3,536,566 |
) |
|
$ |
(3,738,945 |
) |
|
|
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.12 |
) |
|
$ |
(0.13 |
) |
Basic and diluted common
shares outstanding |
|
29,785,759 |
|
|
|
29,370,789 |
|
Selected Balance Sheet Data - Unaudited |
(in thousands) |
|
|
March 31, |
|
December 31, |
|
2023 |
|
2022 |
Cash and cash equivalents |
$ |
35,895 |
|
$ |
39,535 |
Working capital |
|
41,086 |
|
|
48,966 |
Total assets |
|
698,128 |
|
|
714,943 |
Long-term debt, net of
unamortized debt issuance costs |
|
285,839 |
|
|
285,473 |
Stockholders' equity |
$ |
220,101 |
|
$ |
223,489 |
Selected Statement of Cash Flows Data –
Unaudited |
|
|
Three months ended |
|
March 31, |
|
2023 |
|
|
2022 |
|
Net cash provided by (used in) operating activities |
$ |
(2,445,165 |
) |
|
$ |
735,374 |
|
Net cash used in investing
activities |
|
(1,169,280 |
) |
|
|
(1,375,775 |
) |
Net cash used in financing
activities |
|
(25,545 |
) |
|
|
(31,544 |
) |
Net decrease in cash and cash
equivalents |
$ |
(3,639,990 |
) |
|
$ |
(671,945 |
) |
Calculation of Station Operating Income –
Unaudited |
|
|
Three months ended |
|
March 31, |
|
|
2023 |
|
|
|
2022 |
|
Net revenue |
$ |
57,779,120 |
|
|
$ |
55,720,268 |
|
Operating expenses |
|
(50,653,655 |
) |
|
|
(49,830,436 |
) |
Station operating income |
$ |
7,125,465 |
|
|
$ |
5,889,832 |
|
Reconciliation of Net Loss to Station Operating Income –
Unaudited |
|
|
Three months ended |
|
March 31, |
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(3,536,566 |
) |
|
$ |
(3,738,945 |
) |
Corporate expenses |
|
4,483,095 |
|
|
|
4,233,460 |
|
Depreciation and
amortization |
|
2,229,325 |
|
|
|
2,515,900 |
|
Impairment loss |
|
- |
|
|
|
1,857,226 |
|
Interest expense |
|
6,593,852 |
|
|
|
6,849,037 |
|
Other income, net |
|
(540,515 |
) |
|
|
(872 |
) |
Income tax benefit |
|
(2,163,983 |
) |
|
|
(5,849,318 |
) |
Equity in earnings of
unconsolidated affiliates, net of tax |
|
60,257 |
|
|
|
23,344 |
|
Station operating income |
$ |
7,125,465 |
|
|
$ |
5,889,832 |
|
CONTACT:
B. Caroline
Beasley |
Joseph
Jaffoni, Jennifer Neuman |
Chief Executive Officer |
JCIR |
Beasley Broadcast Group, Inc. |
212/835-8500 or bbgi@jcir.com |
239/263-5000 or ir@bbgi.com |
|
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