Conference Call and Webcast |
Today, |
877-407-4018 or 201-689-8471, conference ID 13744073 or |
www.bbgi.com |
Replay information provided below |
Summary of Fourth Quarter and Full Year Results
In millions, except per share data | Three Months Ended | Twelve Months Ended | ||
2023 | 2022 | 2023 | 2022 | |
Net revenue | ||||
Operating income (loss) 1 | 7.6 | (31.7) | (82.0) | (34.3) |
Net income (loss) 1 | 6.4 | (24.5) | (75.1) | (42.1) |
Net income (loss) per diluted share 1 | ( | ( | ( | |
Adjusted EBITDA (non-GAAP) |
1 Operating income (loss), net income (loss) and net income (loss) per diluted share in the three and twelve months ended |
Net revenue during the three months ended
Beasley reported fourth quarter operating income of
Beasley reported net income of
Adjusted EBITDA (a non-GAAP financial measure) was
Please refer to the “Calculation of Adjusted EBITDA” and “Reconciliation of Net Income (Loss) to Adjusted EBITDA” tables at the end of this release.
Commenting on the financial results,
“For the 2023 fourth quarter and full year, net income (loss) was
“For the better part of the year, we continued to execute on our successful growth agenda for our digital business that capitalizes on the value of our strong local brands, unique local business relationships and proven marketing capabilities. While macroeconomic pressures held fourth quarter digital revenue flat compared to the prior year, Beasley delivered meaningful full-year digital revenue growth, up 11.4% year-over-year. Our digital business represented 18.4% of full year 2023 revenue. We remain laser focused on prioritizing the growth of our digital platform as a means to diversify our revenue in a cash flow positive manner, and we expect digital revenue to account for between 20% and 25% of total revenue in 2024. Our dedicated sales teams also continue to leverage the tremendous audience reach and engagement of our local multi-platform content to attract new advertisers, resulting in fourth quarter and full year new local business revenue growth of 52% and 20%, respectively. Additionally, the actions we have taken to reduce costs drove a year-over-year decline in operating expenses of 3.3% in the fourth quarter and 2.3% for the full year.
“Throughout the year, we further refined our media platform and completed several strategic transactions in order to prioritize investments in key growth areas, with an emphasis on digital. In the fourth quarter, we closed the sale of
“Consistent with Beasley’s commitment to enhancing financial flexibility and cash flows through debt reduction, we used the proceeds from these transactions, along with cash on hand, to repurchase
“In summary, we are proud of the commitment of our teams in delivering exceptional content and services to millions of listeners, advertisers, digital users and sports fans, and remain confident that the actions we are taking to transform our company are laying the foundation for future growth and success. While macroeconomic uncertainty persists, we are cautiously optimistic about our 2024 growth prospects given our solid foundation, including powerful brands, leading audience share, effective strategies, and anticipated strong political spending in the back half of the year.”
Conference Call and Webcast Information
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Questions from analysts, institutional investors and debt holders may be e-mailed to ir@bbgi.com at any time up until
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Definitions
EBITDA is defined as net income (loss) before interest income or expense, income tax expense or benefit, depreciation, and amortization.
Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain, non-operating or other items that we believe are not indicative of the performance of our ongoing operations, such as impairment losses, other income or expense, or equity in earnings of unconsolidated affiliates. See “Reconciliation of Net Income (Loss) to Adjusted EBITDA” for additional information.
Adjusted EBITDA can also be calculated as net revenue less operating and corporate expenses. We define operating expenses as cost of services and selling, general and administrative expenses. Corporate expenses include general and administrative expenses and certain other income and expense items not allocated to the operating segments.
Adjusted EBITDA is a measure widely used in the media industry. The Company recognizes that because Adjusted EBITDA is not calculated in accordance with GAAP, it is not necessarily comparable to similarly titled measures employed by other companies. However, management believes that Adjusted EBITDA provides meaningful information to investors because it is an important measure of how effectively we operate our business and assists investors in comparing our operating performance with that of other media companies. The Company also presents Net revenue, excluding the impacts of political advertising, acquisitions and dispositions, and Adjusted EBITDA, excluding the impacts of political advertising, acquisitions and dispositions, to provide meaningful information to investors regarding how political advertising and acquisition and disposition activity impacted certain key performance measures.
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
- our ability to comply with the continued standards of the Nasdaq Global Market;
- 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 our 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
Consolidated Statements of Comprehensive Income (Loss) - Unaudited | |||||||||||
Three months ended | Twelve months ended | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Net revenue | $ | 65,748,658 | $ | 72,027,012 | $ | 247,109,258 | $ | 256,381,018 | |||
Operating expenses: | |||||||||||
Operating expenses (including stock-based compensation and excluding depreciation and amortization shown separately below) | 56,148,960 | 58,088,223 | 208,247,221 | 213,236,063 | |||||||
Corporate expenses (including stock-based compensation) | 4,865,328 | 4,068,067 | 18,246,731 | 18,001,359 | |||||||
Depreciation and amortization | 2,182,369 | 2,496,898 | 8,809,343 | 9,920,546 | |||||||
FCC licenses impairment losses | 969,600 | 19,179,611 | 89,214,665 | 23,799,383 | |||||||
- | 10,396,536 | 10,582,360 | 16,253,087 | ||||||||
Other impairment losses | - | 12,822,000 | - | 12,822,000 | |||||||
Gain on exchange | - | (3,350,539) | - | (3,350,539) | |||||||
Extinguishment of franchise fee | (6,000,000) | - | (6,000,000) | - | |||||||
Total operating expenses | 58,166,257 | 103,700,796 | 329,100,320 | 290,681,899 | |||||||
Operating income (loss) | 7,582,401 | (31,673,784) | (81,991,062) | (34,300,881) | |||||||
Non-operating income (expense): | |||||||||||
Interest expense | (6,843,853) | (6,620,251) | (26,607,920) | (26,914,045) | |||||||
Gain on repurchases of long-term debt | 6,834,667 | - | 7,807,875 | 1,131,346 | |||||||
Other income, net | 821,171 | 24,810 | 1,532,131 | 250,976 | |||||||
Income (loss) before income taxes | 8,394,386 | (38,269,225) | (99,258,976) | (59,832,604) | |||||||
Income tax expense (benefit) | 1,997,841 | (13,912,788) | (24,287,366) | (17,787,434) | |||||||
Income (loss) before equity in earnings of unconsolidated affiliates | 6,396,545 | (24,356,437) | (74,971,610) | (42,045,170) | |||||||
Equity in earnings of unconsolidated affiliates, net of tax | (12,651) | (153,414) | (148,528) | (12,260) | |||||||
Net income (loss) | $ | 6,383,894 | $ | (24,509,851) | $ | (75,120,138) | $ | (42,057,430) | |||
Basic and diluted net income (loss) per share | $ | 0.21 | $ | (0.83) | $ | (2.51) | $ | (1.43) | |||
Basic common shares outstanding | 29,970,584 | 29,557,050 | 29,893,722 | 29,473,989 | |||||||
Diluted common shares outstanding | 30,028,002 | 29,557,050 | 29,893,722 | 29,473,989 |
Selected Balance Sheet Data - Unaudited | |||||
(in thousands) | |||||
2023 | 2022 | ||||
Cash and cash equivalents | $ | 26,734 | $ | 39,535 | |
Working capital | 38,351 | 48,966 | |||
Total assets | 574,268 | 714,943 | |||
Long-term debt, net of unamortized debt issuance costs | 264,203 | 285,473 | |||
Stockholders' equity | $ | 148,979 | $ | 223,489 |
Selected Statement of Cash Flows Data – Unaudited | |||||
Year ended | |||||
2023 | 2022 | ||||
Net cash provided by (used in) operating activities | $ | (4,678,549) | $ | 11,147,084 | |
Net cash provided by (used in) investing activities | 6,870,446 | (14,177,688) | |||
Net cash used in financing activities | (14,992,629) | (8,813,385) | |||
Net decrease in cash and cash equivalents | $ | (12,800,732) | $ | (11,843,989) |
Calculation of Adjusted EBITDA – Unaudited | |||||||||||
Three months ended | Year ended | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Net revenue | $ | 65,748,658 | $ | 72,027,012 | $ | 247,109,258 | $ | 256,381,018 | |||
Operating expenses | (56,148,960) | (58,088,223) | (208,247,221) | (213,236,063) | |||||||
Corporate expenses | (4,865,328) | (4,068,067) | (18,246,731) | (18,001,359) | |||||||
Adjusted EBITDA | $ | 4,734,370 | $ | 9,870,722 | $ | 20,615,306 | $ | 25,143,596 |
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA, excluding the impacts of political advertising, acquisitions and dispositions | |||||||||||
Three months ended | Year ended | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Net income (loss) | $ | 6,383,894 | $ | (24,509,851) | $ | (75,120,138) | $ | (42,057,430) | |||
Interest expense | 6,843,853 | 6,620,251 | 26,607,920 | 26,914,045 | |||||||
Income tax expense (benefit) | 1,997,841 | (13,912,788) | (24,287,366) | (17,787,434) | |||||||
Depreciation and amortization | 2,182,369 | 2,496,898 | 8,809,343 | 9,920,546 | |||||||
EBITDA | 17,407,957 | (29,305,490) | (63,990,241) | (23,010,273) | |||||||
FCC licenses impairment losses | 969,600 | 19,179,611 | 89,214,665 | 23,799,383 | |||||||
- | 10,396,536 | 10,582,360 | 16,253,087 | ||||||||
Other impairment losses | - | 12,822,000 | - | 12,822,000 | |||||||
Gain on exchange | - | (3,350,539) | - | (3,350,539) | |||||||
Extinguishment of franchise fee | (6,000,000) | - | (6,000,000) | - | |||||||
Gain on repurchases of long-term debt | (6,834,667) | - | (7,807,875) | (1,131,346) | |||||||
Other income, net | (821,171) | (24,810) | (1,532,131) | (250,976) | |||||||
Equity in earnings of unconsolidated affiliates, net of tax | 12,651 | 153,414 | 148,528 | 12,260 | |||||||
Adjusted EBITDA | $ | 4,734,370 | $ | 9,870,722 | $ | 20,615,306 | $ | 25,143,596 | |||
Political advertising | (382,998) | (4,125,167) | (530,419) | (6,121,767) | |||||||
Acquisitions | 211,637 | - | 3,162,546 | 15,045 | |||||||
Dispositions | 790,025 | (437,131) | 1,994,926 | 156,457 | |||||||
Adjusted EBITDA, excluding impacts of political advertising, acquisitions and dispositions | $ | 5,353,034 | $ | 5,308,424 | $ | 25,242,359 | $ | 19,193,331 |
Reconciliation of Net revenue, excluding the impacts of political advertising, acquisitions and dispositions – Unaudited | |||||||||||
Three months ended | Year ended | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Net revenue | $ | 65,748,658 | $ | 72,027,012 | $ | 247,109,258 | $ | 256,381,018 | |||
Political advertising | (425,553) | (4,583,519) | (589,355) | (6,801,963) | |||||||
Acquisitions | (164,308) | - | (3,795,660) | (2,026,046) | |||||||
Dispositions | (524,291) | (2,585,462) | (5,401,059) | (8,884,738) | |||||||
Net revenue, excluding impacts of political advertising, acquisitions and dispositions | $ | 64,634,506 | $ | 64,858,031 | $ | 237,323,184 | $ | 238,668,271 |
CONTACT: | ||
Chief Executive Officer | JCIR | |
212/835-8500 or bbgi@jcir.com | ||
239/263-5000 or ir@bbgi.com |
Source:
2024 GlobeNewswire, Inc., source