Beasley Broadcast Group, Inc. (Nasdaq:BBGI) (“Beasley,” “Beasley
Broadcast” or the “Company”), a large- and mid-size market radio
broadcaster, today announced operating results for the three month
period ended March 31, 2016.
Summary of
First Quarter Results |
|
|
|
In millions, except per share data |
Three Months Ended March 31, |
|
|
|
2016 |
|
|
2015 |
|
Change |
Net revenue |
$ |
27.5 |
|
$ |
24.3 |
|
|
13.2 |
% |
Station operating income (SOI - non-GAAP) |
|
7.5 |
|
|
6.4 |
|
|
16.0 |
% |
Operating income |
|
4.1 |
|
|
2.6 |
|
|
60.3 |
% |
Net income |
|
1.8 |
|
|
1.3 |
|
|
40.2 |
% |
Net income per diluted share |
$ |
0.08 |
|
$ |
0.06 |
|
|
33.3 |
% |
|
|
|
|
|
|
|
|
|
|
The $3.2 million, or 13.2%, year-over-year
increase in net revenue during the three months ended March 31,
2016, primarily reflects higher revenue at the Company’s Tampa-St.
Petersburg and Charlotte market clusters.
Station Operating Income (SOI, a non-GAAP
financial measure), rose 16% in the first quarter of 2016, compared
to the first quarter of 2015, to $7.5 million. The increase was
driven by higher net revenue in the first quarter of 2016,
partially offset by a $2.2 million, or 12.2%, increase in station
operating expenses related to higher bonuses earned, partially as a
result of higher revenue, promotions and event/concert
expenses.
The year-over-year decrease in other income
(expense), net is primarily due to a $0.4 million benefit from
insurance proceeds related to a damaged radio tower in Augusta,
Georgia in 2015, while the $0.5 million, or 59.8%, increase in
income tax expense primarily reflects a rise in the effective tax
rate compared to the first quarter of 2015 as well as the higher
level of pre-tax income. As a result, net income and net
income per diluted share for the 2016 first quarter was $1.8
million and $0.08, respectively, compared with $1.3 million, and
$0.06, respectively, in the comparable year ago period.
Please refer to the “Calculation of SOI,” and
“Reconciliation of SOI to Net Income,” tables at the end of this
announcement for a discussion regarding SOI calculations.
Commenting on the results, Caroline Beasley,
Interim Chief Executive Officer and Executive Vice President/Chief
Financial Officer, said, “Our strong first quarter operating
results highlight the solid revenue growth at the Company’s
Tampa-St. Petersburg and Charlotte market clusters which combined
with the success of our integration and profitability initiatives
generated double digit growth in key financial metrics. While
2016 first quarter revenue included the cyclical return of
political advertising, we generated organic revenue growth even
without the political spending. In addition, we achieved our
goal of our clusters, on a combined basis, outperforming the
markets that report to Miller Kaplan for the full quarter and
expect this trend to continue in 2016.
“At the time we announced the station exchange with CBS in 2014,
we indicated that we expected the transaction to be accretive to
the Company’s station operating income in the first eighteen months
of ownership. As reflected by the first quarter results, we
exceeded our goal as the transaction is accretive after
approximately sixteen months of ownership.
“During the first quarter, we continued to allocate operating
cash flow to debt reduction and made credit facility repayments
totaling $3.0 million, reducing borrowings to $86.0 million at
March 31, 2016. We intend to continue our use of cash from
operations to further reduce debt, pay quarterly cash dividends and
to pursue other opportunities to enhance shareholder value and
during the first quarter declared our tenth consecutive quarterly
cash dividend.
“Our strategic priorities remain focused on leveraging our local
content and the strong ratings in all of our clusters through the
further development of our digital and event marketing/NTR
activities. We've worked hard to maintain strong community
involvement and an intimate connection with our listeners and
advertisers in all of our markets. We also remain focused on
our station clusters matching or exceeding their market’s revenue
performance and further strengthening our balance sheet as means of
enhancing shareholder value. In 2016, we expect to benefit
from the changes put in place over the last year as well as the
cyclical return of political advertising.”
Webcast Information
The Company will host a webcast today, May 4,
2016, at 10:00 a.m. ET to discuss its financial results and
operations. Interested parties may access the webcast at the
Company’s web site at www.bbgi.com. Following its completion,
a replay of the webcast can be accessed for five days on the
Company’s web site, www.bbgi.com.
About Beasley Broadcast
Group:Founded in 1961, Beasley Broadcast Group, Inc.,
www.bbgi.com, is a radio broadcasting company that owns and
operates 52 stations (34 FM and 18 AM) located in twelve large- and
mid-size markets in the United States.
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., 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 U.S. Private Securities Litigation Reform Act of
1995. Words or expressions such as “intend,” “believe,”
“may,” “could,” “should,” “will,” “expects,” “anticipates,”
“intends,” “continue,” “looking forward,” “plans,” “estimates” and
similar expressions or the negative of these terms or other
comparable terminology are intended to identify such
forward-looking statements. Key risks are described in our
reports filed with the SEC including in our Annual Report on Form
10-K for the year ended December 31, 2015. 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: risks that the stations acquired in the asset
exchange with CBS Radio will not be integrated successfully or that
the combined company will not realize estimated cost savings,
synergies and growth or that such benefits may take longer to
realize than expected; risks relating to unanticipated costs of
integrating the stations acquired in the asset exchange with CBS
Radio; external economic forces that could have a material adverse
impact on our advertising revenues and results of operations; our
radio stations may not be able to compete effectively in their
respective markets for advertising revenues; we may not remain
competitive if we do not respond to changes in technology,
standards and services that affect our industry; our substantial
debt levels; and, the loss of key personnel. Our actual
performance and results could differ materially because of these
factors and other factors discussed in the “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” in
our SEC filings, including but not limited to 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 May 4,
2016, 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 Operations (Unaudited) |
|
|
Three Months EndedMarch
31, |
|
|
2016 |
|
|
|
2015 |
|
Net revenue |
$ |
27,454,947 |
|
|
$ |
24,250,839 |
|
Operating expenses: |
|
|
|
Station operating expenses
(including stock-based compensation and excluding depreciation and
amortization shown separately below) (1)(2) |
|
19,986,291 |
|
|
|
17,813,948 |
|
Corporate general and
administrative expenses (including stock-based compensation)
(3) |
|
2,500,957 |
|
|
|
2,439,147 |
|
Radio station exchange transaction
cost |
|
- |
|
|
|
303,762 |
|
Depreciation and amortization |
|
839,406 |
|
|
|
1,118,853 |
|
Total operating expenses |
|
23,326,654 |
|
|
|
21,675,710 |
|
Operating income |
|
4,128,293 |
|
|
|
2,575,129 |
|
Non-operating income
(expense): |
|
|
|
Interest expense |
|
(988,524 |
) |
|
|
(948,006 |
) |
Other income (expense), net |
|
(39,641 |
) |
|
|
471,805 |
|
Income before income taxes |
|
3,100,128 |
|
|
|
2,098,928 |
|
Income tax expense |
|
1,279,375 |
|
|
|
800,544 |
|
Net income |
$ |
1,820,753 |
|
|
$ |
1,298,384 |
|
|
|
|
|
Basic and diluted net
income per share |
$ |
0.08 |
|
|
$ |
0.06 |
|
Basic common shares
outstanding |
|
22,983,471 |
|
|
|
22,880,681 |
|
Diluted common shares
outstanding |
|
23,020,926 |
|
|
|
22,906,828 |
|
(1 |
) |
We refer to “Cost of services,” and
“Selling, general and administrative” together as “station
operating expenses” for the “Calculation of SOI” and
“Reconciliation of SOI to Net Income” below. |
(2 |
) |
Includes stock-based compensation
of $36,412 and $41,791 for the three months ended March 31, 2016
and 2015, respectively. |
(3 |
) |
Includes stock-based compensation
of $198,894 and $328,091 for the three months ended March 31, 2016
and 2015, respectively. |
|
|
|
Selected
Balance Sheet Data - Unaudited |
(in
thousands) |
|
|
March 31,2016 |
|
December 31,2015 |
Cash and cash
equivalents |
$ |
15,557 |
|
|
$ |
14,318 |
|
Working capital |
|
26,739 |
|
|
|
26,180 |
|
Total assets |
|
311,839 |
|
|
|
311,402 |
|
Long term debt, net of
current portion |
|
84,964 |
|
|
|
86,462 |
|
Stockholders’ equity |
$ |
134,376 |
|
|
$ |
133,537 |
|
|
|
|
|
|
|
|
|
|
Selected
Statement of Cash Flows Data – Unaudited |
|
|
|
Three Months Ended March
31, |
|
|
2016 |
|
|
|
2015 |
|
Net cash provided by operating activities |
$ |
6,087,590 |
|
|
$ |
1,564,316 |
|
Net cash used in investing activities |
|
(656,073 |
) |
|
|
(560,592 |
) |
Net cash used in financing activities |
|
(4,193,105 |
) |
|
|
(2,916,244 |
) |
Net increase (decrease) in cash and cash
equivalents |
$ |
1,238,412 |
|
|
$ |
(1,912,520 |
) |
|
|
|
|
|
|
|
|
|
Calculation
of SOI – Unaudited |
|
|
|
Three Months EndedMarch
31, |
|
|
2016 |
|
|
|
2015 |
|
Net revenue |
$ |
27,454,947 |
|
|
$ |
24,250,839 |
|
Station operating
expenses |
|
(19,986,291 |
) |
|
|
(17,813,948 |
) |
SOI |
$ |
7,468,656 |
|
|
$ |
6,436,891 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of SOI to Net Income -
Unaudited |
|
|
|
Three Months EndedMarch
31, |
|
|
2016 |
|
|
|
2015 |
|
SOI |
$ |
7,468,656 |
|
|
$ |
6,436,891 |
|
Corporate general and
administrative expenses |
|
(2,500,957 |
) |
|
|
(2,439,147 |
) |
Radio station exchange
transaction costs |
|
- |
|
|
|
(303,762 |
) |
Depreciation and
amortization |
|
(839,406 |
) |
|
|
(1,118,853 |
) |
Interest expense |
|
(988,524 |
) |
|
|
(948,006 |
) |
Other income (expense), net |
|
(39,641 |
) |
|
|
471,805 |
|
Income tax expense |
|
(1,279,375 |
) |
|
|
(800,544 |
) |
Net income |
$ |
1,820,753 |
|
|
$ |
1,298,384 |
|
|
|
|
|
|
|
|
|
CONTACT:
B. Caroline Beasley, Interim Chief Executive Officer & Chief Financial Officer
Beasley Broadcast Group, Inc.
239/263-5000; email@bbgi.com
Joseph N. Jaffoni
JCIR
212/835-8500 or bbgi@jcir.com
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