{"id":523870,"date":"2021-08-05T07:04:53","date_gmt":"2021-08-05T11:04:53","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/beasley-broadcast-group-reports-second-quarter-net-revenue-of-59-6-million\/"},"modified":"2021-08-05T07:04:53","modified_gmt":"2021-08-05T11:04:53","slug":"beasley-broadcast-group-reports-second-quarter-net-revenue-of-59-6-million","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/beasley-broadcast-group-reports-second-quarter-net-revenue-of-59-6-million\/","title":{"rendered":"Beasley Broadcast Group Reports Second Quarter Net Revenue of $59.6 Million"},"content":{"rendered":"
\n\n\n\n\n\n\n
\n Conference Call and Webcast<\/strong>\n <\/td>\n<\/tr>\n
\n Today, August 5, 2021 at 11:00 a.m. ET<\/strong>\n <\/td>\n<\/tr>\n
\n 334-323-0501, conference ID 7839039 or www.bbgi.com<\/a><\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n<\/tr>\n
\n Replay information provided below<\/strong>\n <\/td>\n<\/tr>\n<\/table>\n

NAPLES, Fla., Aug. 05, 2021 (GLOBE NEWSWIRE) — Beasley Broadcast Group, Inc. (Nasdaq: BBGI) (\u201cBeasley\u201d or the \u201cCompany\u201d), a multi-platform media company, today announced operating results for the three- and six-month periods ended June 30, 2021.<\/p>\n

\n Summary of Second Quarter and Year-to-Date Results<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n
\n

In millions, except per share data<\/td>\n

\n Three Months Ended<\/strong>
\n
\n June 30,<\/strong>\n <\/td>\n		\n Six Months Ended<\/strong>
\n
\n June 30,<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\n 2021<\/strong>\n <\/td>\n\n 2020<\/strong>\n <\/td>\n\n 2021<\/strong>\n <\/td>\n\n 2020<\/strong>\n <\/td>\n<\/tr>\n
Net revenue<\/td>\n$59.6<\/td>\n$30.4<\/td>\n$107.8<\/td>\n$88.0<\/td>\n<\/tr>\n
Operating income (loss) 1<\/sup><\/td>\n5.8<\/td>\n(17.6)<\/td>\n3.3<\/td>\n(24.8)<\/td>\n<\/tr>\n
Net income (loss) attributable to BBGI stockholders 1<\/sup><\/td>\n0.2<\/td>\n(17.7)<\/td>\n(10.4)<\/td>\n(26.6)<\/td>\n<\/tr>\n
Net income (loss) per diluted share 1<\/sup><\/td>\n$0.01<\/td>\n$(0.63)<\/td>\n$(0.35)<\/td>\n$(0.95)<\/td>\n<\/tr>\n
Station operating income (SOI – non-GAAP)<\/td>\n11.1<\/td>\n(11.0)<\/td>\n16.3<\/td>\n(4.2)<\/td>\n<\/tr>\n<\/table>\n

\n 1 <\/sup>Operating income (loss), net income (loss) attributable to BBGI stockholders and net income (loss) per diluted share reflect $1.5 million in other operating income, net in the three months ended June 30, 2021 and a $2.8 million loss on the modification of long-term debt in the three months ended June 30, 2020. Net income (loss) attributable to BBGI stockholders and net income (loss) per diluted share reflect a $5.0 million loss on extinguishment of long-term debt in the six months ended June 30, 2021. Operating income (loss), net income (loss) attributable to BBGI stockholders and net income (loss) per diluted share reflect $6.8 million of non-cash impairment losses and a $2.8 million loss on the modification of long-term debt in the six months ended June 30, 2020.<\/p>\n

Net revenue during the three months ended June 30, 2021 increased 96.1% to $59.6 million and primarily reflects a year-over-year increase in audio advertising revenue and digital revenue due to the continued recovery of the commercial advertising market from the effects of the COVID-19 pandemic, partially offset by a decrease in other revenue.<\/p>\n

Beasley reported operating income of $5.8 million in the second quarter of 2021 compared to an operating loss of $17.6 million in the second quarter of 2020, largely reflecting the year-over-year increase in net revenue and Station Operating Income (SOI, a non-GAAP financial measure), in addition to lower depreciation and amortization expense and $1.5 million of other operating income, net from life insurance proceeds related to the death of George Beasley, the Company\u2019s former Chairman, partially offset by higher operating and corporate expenses.<\/p>\n

Beasley reported net income attributable to BBGI stockholders of $0.2 million, or $0.01 per diluted share, in the three months ended June 30, 2021, compared to a net loss attributable to BBGI stockholders of $17.7 million, or $0.63 per diluted share, in the three months ended June 30, 2020. The year-over-year increase was primarily due to higher revenue and SOI, as well as the other operating income described above, partially offset by higher interest expense resulting from the issuance of senior secured notes in February 2021.<\/p>\n

SOI increased by $21.1 million to $11.1 million in the second quarter of 2021 compared to negative SOI of $11.0 million in the second quarter of 2020. 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 and reflects the benefit of permanent expense reductions implemented in response to the COVID-19 pandemic.<\/p>\n

Please refer to the \u201cCalculation of SOI\u201d and \u201cReconciliation of Net Income (Loss) Attributable to BBGI Stockholders to SOI\u201d tables at the end of this announcement for a discussion regarding SOI calculations.<\/p>\n

Commenting on the financial results, Caroline Beasley, Chief Executive Officer, said, \u201cBeasley\u2019s strong 2021 second quarter financial results reflect growing momentum across our media platform, as the continuing broad-based economic recovery accelerated demand from consumers and advertisers for our premium content and marketing and advertising services. With the significant rebound in the commercial advertising market, second quarter net revenue of $59.6 million increased 24% over first quarter 2021 levels and 96% over the comparable prior year period. Top line growth combined with the meaningful actions we have taken over the past year to permanently reduce costs and improve operating efficiencies, resulted in a significant rebound in net income to $0.2 million and SOI to $11.1 million, as well as positive free cash flow of approximately $1.0 million.<\/p>\n

\u201cThroughout the second quarter, the resumption of advertising in key categories combined with the success of our content monetization strategies resulted in year-over-year revenue growth across all fifteen of our markets, with healthy double-digit revenue increases in Boston, Detroit, Philadelphia and Wilmington. Notably, our continued emphasis on strong local content and consumer engagement drove best-in-industry ratings performance for our station clusters, according to Nielsen. Our cumulative on-air audience share approached pre-pandemic levels in the second quarter, having grown consistently since the height of the COVID-19 pandemic in 2020. While second quarter non-traditional revenue (NTR) and events revenue was minimal, we made the strategic decision to fully re-open our events business in the third quarter, given the continued strengthening of commerce and consumer activities in our markets, and expect incremental revenue from this source in the second half of 2021. As we work to return all of our revenue sources to pre-pandemic levels of operation, we are closely tracking potential impacts from the Delta variant and the uncertainty it may bring to businesses we serve and our future operating results.<\/p>\n

\u201cOur ongoing focus on digital innovation and the strategic investments we are making in our digital and esports infrastructure and content production capabilities are delivering positive results and continue to highlight the value of our long-term revenue and cash flow diversification strategies. Growing consumer and advertiser demand for Beasley\u2019s digital audio content drove a 96% year-over-year increase in digital revenue, with digital accounting for approximately 13.4% of total second quarter revenue, compared to 13.4% in the prior year period and 12% in the 2021 first quarter. With growing audience share and engagement, Beasley\u2019s digital network delivered record digital audience impressions in the second quarter, with total digital impressions growing 29% over the prior year period.<\/p>\n

\u201cThe meaningful actions we have taken over the last year to implement permanent expense reductions, increase operating efficiencies and improve our balance sheet and overall capital structure have enabled Beasley to emerge from the pandemic a much stronger company with the financial flexibility to support our future growth. Earlier this year we completed a $300.0 million offering of 8.625% senior secured notes due 2026. The net proceeds of the offering were used to repay in full existing indebtedness under the Company\u2019s senior secured credit facilities and other debt, with the remaining proceeds added to our balance sheet for general corporate purposes. As a result, including the $10.0 million loan we received pursuant to the Paycheck Protection Program in early March, we ended the quarter with a significantly improved liquidity profile with over $57 million on our balance sheet.<\/p>\n

\u201cThis year, Beasley will celebrate its 60th anniversary. We will mark this important milestone during a time of significant mourning following the passing in early June of George Beasley, my father and our founder and Chairman. Inspired by a commitment to provide a voice for the voiceless in his local community, George built his very first station in Benson, North Carolina in December of 1961. Over the next 60 years, his hard work and vision paved the way for what our Company has become today \u2013 one of America\u2019s premiere publicly traded media companies, consisting of 62 radio stations located in 15 large and medium-sized markets with digital offerings and an esports division. We intend to build upon George\u2019s vision by continuing to grow our media platform, while maintaining Beasley\u2019s organization-wide commitment to \u2018local\u2019 and our culture of innovation, entrepreneurship, integrity and respect.<\/p>\n

\u201cIn summary, the experience of our team and strong competitive positions and ratings in our markets, combined with the steps we have taken to strengthen our financial position and improve operating efficiencies across the business were key factors in Beasley\u2019s ability to generate cash flow from operations and return to profitability in the second quarter of 2021. Our operating momentum has continued into the third quarter, and we expect to generate year-over-year revenue growth from all of our non-political revenue sources for the remainder of the year. Looking ahead, our strategic priorities remain focused on serving our communities, while diversifying our revenue, growing our cash flow and maintaining a solid and flexible balance sheet with liquidity at current or higher levels, which we believe will best position Beasley for near- and long-term success and the enhancement of stockholder value.\u201d<\/p>\n

\n Conference Call and Webcast Information<\/strong>\n <\/p>\n

The Company will host a conference call and webcast today, August 5, 2021 at 11:00 a.m. ET to discuss its financial results and operations. To access the conference call, interested parties may dial 334-323-0501, conference ID 7839039 (domestic and international callers). Participants can also listen to a live webcast of the call at the Company\u2019s 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\u2019s website, www.bbgi.com<\/a>.\u00a0<\/p>\n

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 Thursday, August 5, 2021. Management will answer as many questions as possible during the conference call and webcast (provided the questions are not addressed in their prepared remarks).<\/p>\n

\n About Beasley Broadcast Group<\/strong>
\n
Celebrating its 60th anniversary this year, the Company owns and operates 62 stations (47 FM and 15 AM) in 15 large- and mid-size markets in the United States. Approximately 20 million consumers listen to the Company\u2019s radio stations weekly over-the-air, online and on smartphones and tablets, and millions regularly engage with the Company\u2019s brands and personalities through digital platforms such as Facebook, Twitter, text messaging, digital and web applications and email. The Overwatch League\u2019s Houston Outlaws esports team is a wholly-owned subsidiary, and the Company also owns BeasleyXP, a national esports content hub. For more information, please visit www.bbgi.com<\/a>.<\/p>\n

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<\/a>, or Joseph Jaffoni, JCIR, at 212-835-8500 or bbgi@jcir.com<\/a>.<\/p>\n

\n Definitions<\/strong>\n <\/p>\n

Station 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.<\/p>\n

Free Cash Flow (FCF) consists of SOI less corporate expenses, interest expense, current income tax expense and capital expenditures plus stock-based compensation expense, net proceeds from dispositions, net insurance proceeds, amortization of debt issuance costs and interest income.<\/p>\n

SOI and FCF are measures widely used in the radio broadcast industry. The Company recognizes that because SOI and FCF are not calculated in accordance with GAAP, they are not necessarily comparable to similarly titled measures employed by other companies. However, management believes that SOI and FCF provide meaningful information to investors because they are important measures of how effectively we operate our business (i.e., operate radio stations) and assist investors in comparing our operating performance with that of other radio companies.<\/p>\n

\n Note Regarding Forward-Looking Statements<\/strong>
\n
Statements in this release that are \u201cforward-looking statements\u201d 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 \u201cintends,\u201d \u201cbelieves,\u201d \u201cexpects,\u201d \u201cseek,\u201d \u201cwe remain optimistic that\u201d 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\u2019s reports filed with the Securities and Exchange Commission (\u201cSEC\u201d) 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:<\/p>\n