Digital Revenue Increased 23.1% Year-over-Year
Conference Call and Webcast | ||
Today, | ||
773-305-6853, conference ID 9182446 or www.bbgi.com | ||
Replay information provided below |
Summary of Third Quarter and Year-to-Date Results
In millions, except per share data | Three Months Ended | Nine Months Ended | |||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
Net revenue | |||||||||||
Operating income (loss)1 | 4.7 | 4.9 | (2.6) | 8.1 | |||||||
Net income (loss)1 | 0.5 | (1.6) | (17.5) | (12.1) | |||||||
Net income (loss) per diluted share1 | ( | ) | ( | ) | ( | ) | |||||
Station operating income (SOI - non-GAAP) | 12.3 | 11.7 | 29.2 | 28.0 |
1Operating loss and net loss per diluted share reflect a
Net revenue during the three months ended
Beasley reported operating income of
Third quarter 2022 interest expense decreased 5.7% to
Beasley reported net income of
SOI increased by 5.1% to
Please refer to the “Calculation of SOI” and “Reconciliation of Net Income (Loss) Attributable to BBGI Stockholders to SOI” tables at the end of this announcement for a discussion regarding SOI calculations.
Commenting on the financial results,
“Regarding the economic environment, like many companies, we are managing through some challenging market conditions with a focus on what we can control. We continue to experience increased volatility in national spot advertising, which accounted for approximately 15% of our third quarter net revenues. The ongoing strength of our digital and local audio advertising revenues is helping us to partially offset these declines. We are also taking actions on the expense side, and have implemented approximately
“Digital remains a key component of our revenue diversification strategy. Digital revenue increased 23.1% year-over-year representing 16.0% of total third quarter revenues, while our digital margin improved. Our digital performance benefitted from a first full quarter contribution from the white label digital agency we acquired in late June, which we believe will continue to accelerate our digital revenue growth and provide meaningful synergies with our growing digital platform. In both the second and third quarters, digital revenue accounted for a larger share of our revenue than national advertising, and we expect this revenue source to continue offsetting national spot weakness in the coming quarters.
“Total outstanding debt as of
“In summary, we believe these results demonstrate the strength and relevance of our industry-leading audio and digital content, as well as our teams’ extraordinary efforts to serve our listeners, customers and communities through challenging circumstances. And while we cannot control how the economic situation evolves in the coming months, we have already taken decisive steps to mitigate the impact of near-term headwinds and drive continued progress against our long-term growth strategy. Looking ahead, we will continue to focus on maximizing our growth opportunities, managing our expenses and capital structure, serving our audiences and advertisers and delivering results for our stockholders.”
Conference Call and Webcast Information
The Company will host a conference call and webcast today,
Questions from analysts, institutional investors and debt holders may be e-mailed to ir@bbgi.com at any time up until
About
Celebrating its 61st anniversary this year,
For further information, or to receive future
Definitions
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.
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., operate radio stations) and assists investors in comparing our operating performance with that of other radio companies.
Note Regarding Forward-Looking Statements
Statements 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
- 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 FCC licenses and/or goodwill;
- external economic forces that could have a material adverse impact on our advertising revenues and results of operations;
- the ability of our radio 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 radio programs;
- our ability to respond to changes in technology, standards and services that affect the radio industry;
- our dependence on federally issued licenses subject to extensive federal regulation;
- actions by the FCC or new legislation affecting the radio 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 radio 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 radio stations;
- the failure or destruction of the internet, satellite systems and transmitter facilities that we depend upon to distribute our programming;
- disruptions or security breaches of our information technology infrastructure;
- 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 business, 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
-tables follow-
Consolidated Statements of Operations (Unaudited)
Three months ended | Nine months ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net revenue | $ | 63,823,288 | $ | 62,902,935 | $ | 184,354,006 | $ | 170,689,680 | |||||||
Operating expenses: | |||||||||||||||
Operating expenses (including stock-based compensation and excluding depreciation and amortization shown separately below) | 51,511,699 | 51,186,064 | 155,147,840 | 142,648,355 | |||||||||||
Corporate expenses (including stock-based compensation) | 5,132,362 | 3,980,815 | 13,933,292 | 11,843,958 | |||||||||||
Depreciation and amortization | 2,456,646 | 2,843,350 | 7,423,648 | 8,646,174 | |||||||||||
Impairment losses | - | - | 10,476,323 | - | |||||||||||
Gain on disposition | - | - | - | (191,988 | ) | ||||||||||
Other operating income, net | - | - | - | (400,000 | ) | ||||||||||
Total operating expenses | 59,100,707 | 58,010,229 | 186,981,103 | 162,546,499 | |||||||||||
Operating income (loss) | 4,722,581 | 4,892,706 | (2,627,097 | ) | 8,143,181 | ||||||||||
Non-operating income (expense): | |||||||||||||||
Interest expense | (6,621,540 | ) | (7,021,577 | ) | (20,293,794 | ) | (19,665,017 | ) | |||||||
Loss on extinguishment of long-term debt | - | - | - | (4,996,731 | ) | ||||||||||
Other income, net | 1,166,430 | 12,186 | 1,357,512 | 58,679 | |||||||||||
Loss before income taxes | (732,529 | ) | (2,116,685 | ) | (21,563,379 | ) | (16,459,888 | ) | |||||||
Income tax benefit | (1,252,669 | ) | (515,380 | ) | (3,874,646 | ) | (4,417,660 | ) | |||||||
Income (loss) before equity in earnings of unconsolidated affiliates | 520,140 | (1,601,305 | ) | (17,688,733 | ) | (12,042,228 | ) | ||||||||
Equity in earnings of unconsolidated affiliates, net of tax | (22,072 | ) | (19,018 | ) | 141,154 | (75,042 | ) | ||||||||
Net income (loss) | 498,068 | (1,620,323 | ) | (17,547,579 | ) | (12,117,270 | ) | ||||||||
Earnings attributable to noncontrolling interest | - | - | - | 129,249 | |||||||||||
Net income (loss) attributable to | $ | 498,068 | $ | (1,620,323 | ) | $ | (17,547,579 | ) | $ | (11,988,021 | ) | ||||
Basic and diluted net income (loss) per share | $ | 0.02 | $ | (0.06 | ) | $ | (0.60 | ) | $ | (0.41 | ) | ||||
Basic common shares outstanding | 29,546,324 | 29,254,609 | 29,445,998 | 29,263,963 | |||||||||||
Diluted common shares outstanding | 29,715,361 | 29,254,609 | 29,445,998 | 29,263,963 | |||||||||||
Selected Balance Sheet Data - Unaudited
(in thousands)
2022 | 2021 | ||||||
Cash and cash equivalents | $ | 32,849 | $ | 51,379 | |||
Working capital | 45,985 | 67,696 | |||||
Total assets | 744,983 | 762,088 | |||||
Long-term debt, net of unamortized debt issuance costs | 285,105 | 293,790 | |||||
Stockholders' equity | $ | 246,284 | $ | 263,082 |
Selected Statement of Cash Flows Data – Unaudited
Nine Months Ended | |||||||
2022 | 2021 | ||||||
Net cash provided by (used in) operating activities | $ | 2,291,387 | $ | (5,977,001 | ) | ||
Net cash used in investing activities | (12,033,625 | ) | (342,250 | ) | |||
Net cash provided by (used in) financing activities | (8,787,536 | ) | 33,701,577 | ||||
Net increase (decrease) in cash and cash equivalents | $ | (18,529,774 | ) | $ | 27,382,326 |
Calculation of SOI – Unaudited
Three Months Ended | Nine Months Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net revenue | $ | 63,823,288 | $ | 62,902,935 | $ | 184,354,006 | $ | 170,689,680 | |||||||
Station operating expenses | (51,511,699 | ) | (51,186,064 | ) | (155,147,840 | ) | (142,648,355 | ) | |||||||
SOI | $ | 12,311,589 | $ | 11,716,871 | $ | 29,206,166 | $ | 28,041,325 |
Reconciliation of Net Income (Loss) Attributable to BBGI Stockholders to SOI - Unaudited
Three Months Ended | Nine Months Ended | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net income (loss) attributable to | $ | 498,068 | $ | (1,620,323 | ) | $ | (17,547,579 | ) | $ | (11,988,021 | ) | |||||
Corporate expenses | 5,132,362 | 3,980,815 | 13,933,292 | 11,843,958 | ||||||||||||
Depreciation and amortization | 2,456,646 | 2,843,350 | 7,423,648 | 8,646,174 | ||||||||||||
Impairment losses | - | - | 10,476,323 | - | ||||||||||||
Gain on dispositions | - | - | - | (191,988 | ) | |||||||||||
Other operating income, net | - | - | - | (400,000 | ) | |||||||||||
Interest expense | 6,621,540 | 7,021,577 | 20,293,794 | 19,665,017 | ||||||||||||
Loss on extinguishment of long-term debt | - | - | - | 4,996,731 | ||||||||||||
Other income, net | (1,166,430 | ) | (12,186 | ) | (1,357,512 | ) | (58,679 | ) | ||||||||
Income tax benefit | (1,252,669 | ) | (515,380 | ) | (3,874,646 | ) | (4,417,660 | ) | ||||||||
Equity in earnings of unconsolidated affiliates, net of tax | 22,072 | 19,018 | (141,154 | ) | 75,042 | |||||||||||
Earnings attributable to noncontrolling interest | - | - | - | (129,249 | ) | |||||||||||
SOI | $ | 12,311,589 | $ | 11,716,871 | $ | 29,206,166 | $ | 28,041,325 |
CONTACT: | |
Chief Executive Officer | JCIR |
212/835-8500 or bbgi@jcir.com | |
239/263-5000 or ir@bbgi.com |
Source:
2022 GlobeNewswire, Inc., source