Beasley Broadcast Group Q4 revenue increases to $72.0 Million

Beasley Broadcast Group, Inc., a multi-platform media company, today announced operating results for the three- and twelve-month periods ended December 31, 2022.

Operating loss, net loss and net loss per diluted share for the three months ended December 31, 2022 include $44.2 million of non-cash impairment losses related to FCC licenses, goodwill and franchise rights. Operating loss, net loss and net loss per diluted share for the twelve months ended December 31, 2022 include $54.7 million of non-cash impairment losses related to FCC licenses, goodwill and franchise rights. Net loss and net loss per diluted share in the three and twelve months ended December 31, 2021 reflect a $10.0 million gain on forgiveness of long-term debt. Net loss and net loss per diluted share in the twelve months ended December 31, 2021 reflect a $5.0 million loss on extinguishment of long-term debt.

Net revenue during the three months ended December 31, 2022 increased 1.8% to $72.0 million, primarily reflecting a year-over-year increase in digital revenue, political revenue and other revenue, partially offset by a slight decrease in audio revenue related to softness in the national agency business.

Beasley reported an operating loss of $33.5 million in the fourth quarter of 2022, compared to operating income of $6.5 million in the fourth quarter of 2021, primarily due to $44.2 million of non-cash impairment losses and higher operating expenses related to digital, partially offset by lower corporate and depreciation and amortization expense.

The financial information included in this release reflects the recognition of preliminary pre-tax noncash impairment charges of $54.7 million relating to FCC licenses, goodwill and franchise rights. The Company is in the process of finalizing the impairment assessment. As a result, the financial information included in this report is subject to change and constitutes forward-looking information. Actual results may differ materially from the preliminary unaudited results provided herein. The Company expects to complete the impairment analysis and finalize the impairment charges in connection with the filing of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Beasley reported a net loss of $25.8 million, or $0.87 per diluted share, in the three months ended December 31, 2022, compared to net income of $10.6 million, or $0.36 per diluted share, in the three months ended December 31, 2021. The fourth quarter net loss was primarily due to the aforementioned non-cash impairment losses. The comparable 2021 period also benefitted from a $10.0 million gain on forgiveness of long-term debt for the Company’s loan granted under Paycheck Protection Program.

SOI increased 0.2% to $13.9 million in the fourth quarter of 2022 primarily due to higher revenue.

Please refer to the “Calculation of SOI” and “Reconciliation of Net 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, Caroline Beasley, Chief Executive Officer, said, “Beasley’s 2022 fourth quarter and full year financial results reflect the ongoing success of our digital transformation and revenue diversification strategies, which drove year-over-year increases in revenue and SOI for both the three- and twelve-month periods. Throughout the year, Beasley largely offset ongoing challenges related to the economy and softness in the national spot market, as we generated healthy growth across all of our digital, local audio, political and other revenue sources, as reflected by the 6.2% increase in full year net revenues to $256 million. This top-line growth was the primary factor contributing to a 2.8% year-over-year increase in full year SOI to $43.1 million.

“While economic uncertainty remains, Beasley initiated several actions throughout the year that we believe will strengthen the long-term position of our business. First, our digital strategy continues to deliver strong results with fourth quarter digital revenue growth of 13.2% year-over-year, representing nearly 17% of total fourth quarter revenue. Digital revenue has consistently outpaced national spot advertising revenue over the past several quarters due to a combination of organic growth and contributions from the second quarter acquisition of our white label digital agency business, Guarantee Digital. With accelerating demand from consumers and advertisers for our local content and multi-platform marketing solutions, we are solidly on the path for this revenue source to reach 20% of total revenue.

“Second, we remain focused on monetizing our premium audio and digital content through new local business development, revenue diversification and maximizing political revenue opportunities. As a result, in the fourth quarter, we delivered $5.1 million in net political revenue, with stronger than expected gains in Las Vegas, Philadelphia, and Detroit, as well as year-over-year total revenue increases across nearly all of our markets and in our esports business. Our radio brands remain dominant in Nielsen Audio ratings, where Beasley currently has the highest average cluster share when compared to the major radio broadcasters in PPM. Finally, we implemented a cost reduction program in the second half of 2022, with the majority of cost cuts occurring in October.

“Total outstanding debt as of December 31, 2022 was $290.0 million, reflecting our bond repurchase activity throughout 2022. As such, fourth quarter interest expense declined to $6.6 million. Beasley had $39.5 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, given the uncertain economic environment.

“Looking ahead to 2023, our strategic priorities remain focused on growing our overall audience and delivering exceptional content and services to our listeners, advertisers, online users and esports fans, 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.” Globe Newswire