Conference Call and
WebcastToday, Monday, February
11, 2019 at 11:00 a.m. ET323/794-2591, conference
ID 3270827 or
www.bbgi.com
Beasley Broadcast Group, Inc. (Nasdaq: BBGI) (“Beasley” or the
“Company”), a large- and mid-size market radio broadcaster, today
announced operating results for the three-month and twelve-month
periods ended December 31, 2018.
As previously reported, on May 1, 2017, the
Company completed the sale of six stations in Greenville-New
Bern-Jacksonville, and on December 19, 2017, Beasley completed an
asset exchange transaction whereby the Company exchanged its Boston
adult contemporary station WMJX-FM and $12.0 million for Boston’s
sports station WBZ-FM. On September 27, 2018, Beasley completed the
acquisition of WXTU-FM in Philadelphia from Entercom Communications
Corp. for $38.0 million. Prior to the acquisition closing, on July
23, 2018, the Company began operating WXTU-FM under a local
marketing agreement (“LMA”). During the term of the LMA, the
Company included net revenues and station operating expenses,
including the associated LMA fee from operating WXTU-FM, in its
consolidated financial statements.
The results presented herein reflect the
operations and results from WBZ-FM in the three and twelve months
ended December 31, 2018 and WMJX-FM in the three and twelve months
ended December 31, 2017, prior to its divestiture. The results also
reflect a full quarter’s contribution from WXTU-FM in the three
months ended December 31, 2018 and approximately five months of
contribution from WXTU-FM in the twelve months ended December 31,
2018 and four months of contribution from the Greenville-New
Bern-Jacksonville stations in the twelve month period ended
December 31, 2017. The pro-forma revenue for the three months ended
December 31, 2018 compared to the same period in 2017 presented
herein reflects the exchange in Boston and the acquisition of
WXTU-FM.
|
Summary of Fourth Quarter and 2018
Results |
In millions, except per share data |
Three Months EndedDecember
31, |
Twelve Months EndedDecember
31, |
|
2018 |
2017 |
2018 |
2017 |
Net revenue |
$75.6 |
$58.5 |
$257.5 |
$232.2 |
Operating income
1 |
|
13.9 |
|
23.3 |
|
34.3 |
|
60.8 |
Net income 1 |
|
2.1 |
|
69.7 |
|
6.5 |
|
87.1 |
Net income per diluted share 1 |
|
0.08 |
|
2.50 |
|
0.24 |
|
3.14 |
Station operating income (SOI - non-GAAP) 2 |
$20.6 |
$15.0 |
$61.7 |
$57.4 |
|
|
1 |
Operating
income, net income and net income per diluted share in the twelve
months ended December 31, 2018 were impacted by the $1.7 million
USTN bad debt expense. Please refer to the financial statements for
additional information on year over year variances. |
2 |
Station
operating income for the twelve months ended December 31, 2018 was
impacted by an additional $1.7 million in bad debt expense due to
financial issues at United States Traffic Network (“USTN”). |
|
|
The $17.0 million, or 29.1%, year-over-year
increase in net revenue during the three months ended December 31,
2018, reflects year-over-year revenue increases at ten of the
Company’s thirteen market clusters compared to the same period of
2017 and the inclusion of WBZ-FM Boston and WXTU-FM Philadelphia,
partially offset by the disposition of WMJX-FM Boston.
Beasley reported operating income of $13.9
million in the fourth quarter of 2018 compared to operating income
of $23.3 million in the fourth quarter of 2017. The year-over-year
decrease in operating income reflects a net benefit of $13.9
million in the fourth quarter of 2017 related to change in fair
value of contingent consideration and gain on exchange in
connection with the acquisition of Greater Media, Inc. (“Greater
Media”) and the related sale of Greater Media’s tower assets, which
net benefit was partially offset by certain transaction and other
operating expenses.
The decline in 2018 fourth quarter net income
primarily reflects the lower operating income during the period and
a $62.2 million year-over-year net increase in income tax expense
as the Company recorded a $59.7 million deferred income tax benefit
in the 2017 fourth quarter due to a reduction in the federal tax
rate following the enactment of the Tax Cuts and Jobs Act and a
revaluation of deferred tax assets and liabilities using the new
rate. As a result, net income for the 2018 fourth quarter was
$2.1 million, or $0.08 per diluted share.
Station Operating Income (SOI, a non-GAAP
financial measure) rose $5.6 million or 37.2% year-over-year in the
fourth quarter of 2018 to $20.6 million. The year-over-year
increase reflects the net revenue growth during the period which
more than offset a 26.3% year-over-year rise in station operating
expenses related to the Company’s expanded platform.
Please refer to the “Calculation of SOI” and
“Reconciliation of Net Income 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, “Our record 2018 fourth
quarter and full year revenue and strong operating results, despite
the benefit of non-cash transaction related and tax items in the
2017 period, highlight the value being created as we execute
strategies to expand our scale, diversify our revenue mix and
leverage the value of our local brands in our core and ancillary
verticals. Actual fourth quarter revenue rose by 29.1% on a
year-over-year basis driven by net revenue increases at ten of our
clusters, recent acquisitions and station swaps and approximately
$3.9 million of fourth quarter gross political revenue. While
we remain focused on diversifying our operating base, our fourth
quarter pro-forma revenue rose an impressive 9.9%. Fourth quarter
net income declined from 2017 levels solely because of gains and
tax benefits in the year-ago period that did not recur in the 2018
fourth quarter.
“The value of our ongoing strategies to
transform Beasley Broadcast Group into a diversified, multi-media
company is best highlighted by our growing free cash flow.
Beasley’s 2018 fourth quarter free cash flow increased 33.9%, to
$8.6 million over the same period in 2017, while 2018 full year
free cash flow increased 12.8% over full year 2017 levels.
Notably, since implementing our initiatives to broaden and
diversify our reach, scale, revenue and free cash flow through
transactions and investments, our free cash flow rose from $14.9
million in 2015, the last full year prior to completing the Greater
Media transaction, to $25.5 million in 2018, marking a compound
annual growth rate of approximately 20% over this period.
“Throughout 2018, we continued to execute on our
integration strategy focused on premium local programming to
support our goals of ratings and market leadership at acquired
stations, while remaining opportunistic in further building our
scale and revenue diversification to drive growth and SOI margin
expansion. Our strong free cash growth has enabled us to complete
strategic investments in our broadcast, digital, technology and
other platforms, reduce leverage and pay cash dividends to
shareholders. During the year, we completed the strategically
complementary and accretive acquisition of WXTU-FM which has
significantly strengthened our competitive position and revenue
share in the Philadelphia market. We also completed several smaller
acquisitions including a Tampa-based event company and a nationally
syndicated esports show and podcast in separate transactions that
were funded with cash on hand.
“Our 2018 and recent initiatives reflect
Beasley’s disciplined approach to growing our platform, content
portfolio and distribution by identifying and completing
transactions where we can drive revenue and cost synergies, and
further strengthen SOI margins, with a limited impact on our
leverage. During the year, we successfully launched phase two of
our mobile apps and our data attribution initiative, ‘Beasley
Analytics,’ in all our markets as well as BPod Studios which
distributes compelling on-demand audio and original podcast
content. These initiatives reflect our commitment to deliver
great content to our listeners anywhere, any time, on any device,
while further demonstrating to advertisers the incredible value of
radio advertising. We believe the attribution data derived from
Beasley Analytics will strengthen our terrestrial audio business
given its unrivalled confirmation of how radio drives significant
visitation to advertisers’ websites.
“With our disciplined approach to the management
of our capital structure, Beasley remains committed to enhancing
shareholder value through capital returns and leverage reduction.
During the fourth quarter, we paid our twenty first consecutive
quarterly cash dividend.
“Given our strong balance sheet, we believe
Beasley has a solid foundation to continue pursuing a range of
near- and long-term growth opportunities that create new value for
our listeners, advertisers and shareholders. Our platform, market
position, ratings and content are strong, and as the number one
reach medium, we remain confident in the radio industry’s future
and believe that Beasley’s ongoing initiatives to expand,
diversify, and drive sales and efficiency across our platform,
combined with prudent management of our capital structure, is a
proven strategy for sustained long term growth and the enhancement
of shareholder value.”
Conference Call and Webcast
InformationThe Company will host a conference
call and webcast today, February 11, 2019, at 11:00 a.m. ET to
discuss its financial results and operations. To access the
conference call, interested parties may dial 323/794-2591,
conference ID 3270827 (domestic and international callers).
Participants can also listen to a live webcast of the call at the
Company’s 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’s website, www.bbgi.com.
Questions from analysts, institutional investors
and debt holders may be e-mailed to ir@bbgi.com at any time up
until 10:00 a.m. ET on Monday, February 11, 2019. Management will
answer as many questions as possible during the conference call and
webcast (provided the questions are not addressed in their prepared
remarks).
About Beasley Broadcast
GroupCelebrating its 58th anniversary this year, Beasley
Broadcast Group, Inc., (www.bbgi.com) was founded in 1961 by George
G. Beasley who remains the Company’s Chairman of the Board.
Beasley Broadcast Group owns and operates 64 stations (46 FM and 18
AM) in 15 large- and mid-size markets in the United States.
Approximately 19.0 million consumers listen to Beasley radio
stations weekly over-the-air, online and on smartphones and tablets
and millions regularly engage with the Company’s brands and
personalities through digital platforms such as Facebook, Twitter,
text, apps and email. For more information, please visit
www.bbgi.com.
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.
Free Cash Flow (FCF) consists of SOI less
station stock-based compensation expense, corporate general and
administrative expenses, interest expense, current income tax
expense and capital expenditures plus amortization of debt issuance
costs and interest income.
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.
Note Regarding Forward-Looking
StatementsStatements 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 “Looking ahead,” “look
forward,” “intends,” “believe,” “hope,” “plan,” “expects,”
“expected,” “anticipates” 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, such as
statements about expected income; shareholder value; revenues; and
growth. Key risks are described in our reports filed with the
SEC including in our 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:
- external economic forces that could have a material adverse
impact on the Company’s advertising revenues and results of
operations;
- the ability of the Company’s radio stations to compete
effectively in their respective markets for advertising
revenues;
- the ability of the Company to develop compelling and
differentiated digital content, products and services;
- audience acceptance of the Company’s content, particularly its
radio programs;
- the ability of the Company to respond to changes in technology,
standards and services that affect the radio industry;
- the Company’s dependence on federally issued licenses subject
to extensive federal regulation;
- actions by the FCC or new legislation affecting the radio
industry;
- 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 the Company’s FCC broadcasting licenses and/or
goodwill could become impaired;
- the Company’s substantial debt levels and the potential effect
of restrictive debt covenants on the Company’s operational
flexibility and ability to pay dividends;
- the failure or destruction of the internet, satellite systems
and transmitter facilities that the Company depends upon to
distribute its programming;
- disruptions or security breaches of the Company’s information
technology infrastructure;
- the loss of key personnel;
- the fact that the Company is controlled by the Beasley family,
which creates difficulties for any attempt to gain control of the
Company;
- 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;
- other economic, business, competitive, and regulatory factors
affecting the businesses of the Company, including those set forth
in the Company’s filings with the SEC.
Our actual performance and results could differ
materially because of these factors and other factors discussed in
our SEC filings, including but not limited to our 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
February 11, 2019, and we undertake no obligation to update the
information contained herein to actual results or changes to our
expectations.
|
-tables follow- |
|
|
BEASLEY BROADCAST GROUP, INC. |
Consolidated Statements of Operations (Unaudited) |
|
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Net revenue |
$ |
75,568,596 |
|
|
$ |
58,523,448 |
|
|
$ |
257,494,599 |
|
|
$ |
232,179,463 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Station
operating expenses (including stock-based compensation and
excluding depreciation and amortization shown separately
below) |
|
54,921,709 |
|
|
|
43,477,851 |
|
|
|
195,752,948 |
|
|
|
174,822,164 |
|
Corporate
general and administrative expenses (including stock-based
compensation) |
|
4,901,898 |
|
|
|
4,087,306 |
|
|
|
16,290,535 |
|
|
|
15,832,406 |
|
Transaction expenses |
|
- |
|
|
|
217,909 |
|
|
|
110,901 |
|
|
|
963,979 |
|
Other
operating expenses |
|
- |
|
|
|
96,860 |
|
|
|
- |
|
|
|
968,603 |
|
Depreciation and amortization |
|
1,799,264 |
|
|
|
1,558,166 |
|
|
|
6,601,123 |
|
|
|
6,133,812 |
|
Change in
fair value of contingent consideration |
|
- |
|
|
|
(2,387,609 |
) |
|
|
4,415,925 |
|
|
|
(10,053,754 |
) |
Gain on
dispositions, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,707,993 |
) |
Gain on
exchange |
|
- |
|
|
|
(11, 803,585 |
) |
|
|
- |
|
|
|
(11,803,585 |
) |
Termination of postretirement benefits plan |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,812,448 |
) |
Total
operating expenses |
|
61,622,871 |
|
|
|
35,246,898 |
|
|
|
223,171,432 |
|
|
|
171,343,184 |
|
Operating
income |
|
13,945,725 |
|
|
|
23,276,550 |
|
|
|
34,323,167 |
|
|
|
60,836,279 |
|
Non-operating income
(expense): |
|
|
|
|
|
|
|
Interest
expense |
|
(4,501,988 |
) |
|
|
(4,133,159 |
) |
|
|
(16,006,461 |
) |
|
|
(18,430,072 |
) |
Loss on
modification of long-term debt |
|
- |
|
|
|
(3,954,035 |
) |
|
|
(281,021 |
) |
|
|
(3,954,035 |
) |
Other
income (expense), net |
|
425,973 |
|
|
|
8,771 |
|
|
|
140,910 |
|
|
|
450,707 |
|
Income
before income taxes |
|
9,869,710 |
|
|
|
15,198,127 |
|
|
|
18,176,595 |
|
|
|
38,902,879 |
|
Income tax expense
(benefit) |
|
7,777,857 |
|
|
|
(54,470,821 |
) |
|
|
11,695,546 |
|
|
|
(48,228,290 |
) |
Net
income |
$ |
2,091,853 |
|
|
$ |
69,668,948 |
|
|
$ |
6,481,049 |
|
|
$ |
87,131,169 |
|
|
|
|
|
|
|
|
|
Basic net income per
share |
$ |
0.08 |
|
|
$ |
2.51 |
|
|
$ |
0.24 |
|
|
$ |
3.15 |
|
Diluted net income per
share |
$ |
0.08 |
|
|
$ |
2.50 |
|
|
$ |
0.24 |
|
|
$ |
3.14 |
|
Basic common shares
outstanding |
|
27,367,568 |
|
|
|
27,716,349 |
|
|
|
27,444,110 |
|
|
|
27,696,790 |
|
Diluted common shares
outstanding |
|
27,409,701 |
|
|
|
27,832,510 |
|
|
|
27,533,983 |
|
|
|
27,792,702 |
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Data -
Unaudited |
(in thousands) |
|
|
December 31,
2018 |
|
December 31,
2017 |
Cash and cash
equivalents |
$ |
13,434 |
|
|
$ |
13,922 |
|
Working capital |
|
42,086 |
|
|
|
55,700 |
|
Total assets |
|
681,085 |
|
|
|
654,719 |
|
Long term debt, net of
current portion and unamortized debt issuance costs |
|
243,276 |
|
|
|
212,466 |
|
Stockholders’
equity |
$ |
275,034 |
|
|
$ |
286,166 |
|
|
Selected Statement of Cash Flows Data –
Unaudited |
|
|
Twelve Months EndedDecember
31, |
|
2018 |
|
|
2017 |
|
Net cash provided by
operating activities |
$ |
24,394,480 |
|
|
$ |
28,021,057 |
|
Net cash provided by
(used in) investing activities |
|
(45,612,343 |
) |
|
|
17,523,283 |
|
Net cash provided by
(used in) financing activities |
|
20,729,301 |
|
|
|
(51,947,365 |
) |
Net decrease in cash
and cash equivalents |
$ |
(488,562 |
) |
|
$ |
(6,403,025 |
) |
|
Calculation of SOI – Unaudited |
|
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Net revenue |
$ |
75,568,596 |
|
|
$ |
58,523,448 |
|
|
$ |
257,494,599 |
|
|
$ |
232,179,463 |
|
Station operating
expenses |
|
(54,921,709 |
) |
|
|
(43,477,851 |
) |
|
|
(195,752,948 |
) |
|
|
(174,822,164 |
) |
SOI |
$ |
20,646,887 |
|
|
$ |
15,045,597 |
|
|
$ |
61,741,651 |
|
|
$ |
57,357,299 |
|
|
Reconciliation of Net Income
to SOI - Unaudited |
|
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Net income |
$ |
2,091,853 |
|
|
$ |
69,668,948 |
|
|
$ |
6,481,049 |
|
|
$ |
87,131,169 |
|
Corporate general and
administrative expenses |
|
4,901,898 |
|
|
|
4,087,306 |
|
|
|
16,290,535 |
|
|
|
15,832,406 |
|
Transaction
expenses |
|
- |
|
|
|
217,909 |
|
|
|
110,901 |
|
|
|
963,979 |
|
Other operating
expenses |
|
- |
|
|
|
96,860 |
|
|
|
- |
|
|
|
968,603 |
|
Depreciation and
amortization |
|
1,799,264 |
|
|
|
1,558,166 |
|
|
|
6,601,123 |
|
|
|
6,133,812 |
|
Change in fair value of
contingent consideration |
|
- |
|
|
|
(2,387,609 |
) |
|
|
4,415,925 |
|
|
|
(10,053,754 |
) |
Gain on dispositions,
net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,707,993 |
) |
Gain on exchange |
|
- |
|
|
|
(11,803,585 |
) |
|
|
- |
|
|
|
(11,803,585 |
) |
Termination of
postretirement benefits plan |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,812,448 |
) |
Interest expense |
|
4,501,988 |
|
|
|
4,133,159 |
|
|
|
16,006,461 |
|
|
|
18,430,072 |
|
Loss on modification of
long-term debt |
|
- |
|
|
|
3,954,035 |
|
|
|
281,021 |
|
|
|
3,954,035 |
|
Other income (expense),
net |
|
(425,973 |
) |
|
|
(8,771 |
) |
|
|
(140,910 |
) |
|
|
(450,707 |
) |
Income tax expense
(benefit) |
|
7,777,857 |
|
|
|
(54,470,821 |
) |
|
|
11,695,546 |
|
|
|
(48,228,290 |
) |
SOI |
$ |
20,646,887 |
|
|
$ |
15,045,597 |
|
|
$ |
61,741,651 |
|
|
$ |
57,357,299 |
|
|
Calculation of FCF |
|
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Net revenue |
$ |
75,568,596 |
|
|
$ |
58,523,448 |
|
|
$ |
257,494,599 |
|
|
$ |
232,179,463 |
|
Station operating
expenses |
|
(54,921,709 |
) |
|
|
(43,477,851 |
) |
|
|
(195,752,948 |
) |
|
|
(174,822,164 |
) |
Station stock-based
compensation expense |
|
(263,787 |
) |
|
|
(149,367 |
) |
|
|
266,015 |
|
|
|
54,163 |
|
Corporate general and
administrative expenses |
|
(4,471,072 |
) |
|
|
(3,706,482 |
) |
|
|
(14,610,881 |
) |
|
|
(14,141,435 |
) |
Interest expense |
|
(4,501,988 |
) |
|
|
(4,133,159 |
) |
|
|
(16,006,461 |
) |
|
|
(18,430,072 |
) |
Amortization of debt
issuance costs |
|
483,983 |
|
|
|
510,026 |
|
|
|
1,899,532 |
|
|
|
2,150,450 |
|
Interest income |
|
44,999 |
|
|
|
39,990 |
|
|
|
147,150 |
|
|
|
127,270 |
|
Current income tax
expense |
|
(2,510,153 |
) |
|
|
22,666 |
|
|
|
(3,687,442 |
) |
|
|
(289,563 |
) |
Capital
expenditures |
|
(863,110 |
) |
|
|
(1,230,148 |
) |
|
|
(4,209,668 |
) |
|
|
(4,192,614 |
) |
FCF |
$ |
8,565,759 |
|
|
$ |
6,399,123 |
|
|
$ |
25,539,896 |
|
|
$ |
22,635,498 |
|
|
Reconciliation of Net Income to
FCF |
|
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Net income |
$ |
2,091,853 |
|
|
$ |
69,668,948 |
|
|
$ |
6,481,049 |
|
|
$ |
87,131,169 |
|
Station stock-based
compensation expense |
|
(263,787 |
) |
|
|
(149,367 |
) |
|
|
266,015 |
|
|
|
54,163 |
|
Corporate stock-based
compensation expense |
|
430,826 |
|
|
|
380,824 |
|
|
|
1,679,654 |
|
|
|
1,690,971 |
|
Transaction
expenses |
|
- |
|
|
|
217,909 |
|
|
|
110,901 |
|
|
|
963,979 |
|
Other operating
expenses |
|
- |
|
|
|
96,860 |
|
|
|
- |
|
|
|
968,603 |
|
Depreciation and
amortization |
|
1,799,264 |
|
|
|
1,558,166 |
|
|
|
6,601,123 |
|
|
|
6,133,812 |
|
Change in fair value of
contingent consideration |
|
- |
|
|
|
(2,387,609 |
) |
|
|
4,415,925 |
|
|
|
(10,053,754 |
) |
Gain on dispositions,
net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,707,993 |
) |
Gain on exchange |
|
- |
|
|
|
(11,803,585 |
) |
|
|
- |
|
|
|
(11,803,585 |
) |
Termination of
postretirement benefits plan |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,812,448 |
) |
Loss on modification of
long-term debt |
|
- |
|
|
|
3,954,035 |
|
|
|
281,021 |
|
|
|
3,954,035 |
|
Amortization of debt
issuance costs |
|
483,983 |
|
|
|
510,026 |
|
|
|
1,899,532 |
|
|
|
2,150,450 |
|
Interest income |
|
44,999 |
|
|
|
39,990 |
|
|
|
147,150 |
|
|
|
127,270 |
|
Other income (expense),
net |
|
(425,973 |
) |
|
|
(8,771 |
) |
|
|
(140,910 |
) |
|
|
(450,707 |
) |
Deferred income tax
expense |
|
5,267,704 |
|
|
|
(54,448,155 |
) |
|
|
8,008,104 |
|
|
|
(48,517,853 |
) |
Capital
expenditures |
|
(863,110 |
) |
|
|
(1,230,148 |
) |
|
|
(4,209,668 |
) |
|
|
(4,192,614 |
) |
FCF |
$ |
8,565,759 |
|
|
$ |
6 ,399,123 |
|
|
$ |
25,539,896 |
|
|
$ |
22,635,498 |
|
|
Pro-Forma |
|
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
2017 |
|
Reported net
revenue |
75,568,596 |
|
|
58,523,448 |
|
|
257,494,599 |
|
232,179,463 |
|
Acquired
stations |
- |
|
|
13,674,029 |
|
|
5,935,293 |
|
47,490,120 |
|
Disposed
stations |
(10,815 |
) |
|
(3,442,509 |
) |
|
54,071 |
|
(17,432,333 |
) |
Pro-forma net
revenue |
75,557,781 |
|
|
68,754,968 |
|
|
263,483,963 |
|
262,237,250 |
|
|
Calculation of FCF |
|
|
Three months ended |
|
Twelve months ended |
|
Twelve months ended |
|
December 31, |
|
December 31, |
|
December 31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
2015 |
|
Net revenue |
$ |
75,568,596 |
|
|
$ |
58,523,448 |
|
|
$ |
257,494,599 |
|
|
$ |
232,179,463 |
|
|
$ |
105,946,670 |
|
Station operating
expenses |
|
(54,921,709 |
) |
|
|
(43,477,851 |
) |
|
|
(195,752,948 |
) |
|
|
(174,822,164 |
) |
|
|
(75,609,147 |
) |
Station stock-based
compensation expense |
|
(263,787 |
) |
|
|
(149,367 |
) |
|
|
266,015 |
|
|
|
54,163 |
|
|
|
110,781 |
|
Corporate general and
administrative expenses |
|
(4,471,072 |
) |
|
|
(3,706,482 |
) |
|
|
(14,610,881 |
) |
|
|
(14,141,435 |
) |
|
|
(7,981,750 |
) |
Interest expense |
|
(4,501,988 |
) |
|
|
(4,133,159 |
) |
|
|
(16,006,461 |
) |
|
|
(18,430,072 |
) |
|
|
(3,967,794 |
) |
Amortization of debt
issuance costs |
|
483,983 |
|
|
|
510,026 |
|
|
|
1,899,532 |
|
|
|
2,150,450 |
|
|
|
339,924 |
|
Interest income |
|
44,999 |
|
|
|
39,990 |
|
|
|
147,150 |
|
|
|
127,270 |
|
|
|
61,319 |
|
Current income tax
expense |
|
(2,510,153 |
) |
|
|
22,666 |
|
|
|
(3,687,442 |
|
|
|
(289,563 |
) |
|
|
(1,850,676 |
) |
Capital
expenditures |
|
(683,110 |
) |
|
|
(1,230,148 |
) |
|
|
(4,209,668 |
) |
|
|
(4,192,614 |
) |
|
|
(2,129,084 |
) |
FCF |
$ |
8,565,759 |
|
|
$ |
6,399,123 |
|
|
$ |
25,539,896 |
|
|
$ |
22,635,498 |
|
|
$ |
14,920,243 |
|
|
Reconciliation of Net Income to
FCF |
|
|
Three months ended |
|
Twelve months ended |
|
Twelve months ended |
|
December 31, |
|
December 31, |
|
December 31, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
2015 |
|
Net income |
$ |
2,091,853 |
|
|
$ |
69,668,948 |
|
|
$ |
6,481,049 |
|
|
$ |
87,131,169 |
|
|
$ |
6,362,322 |
|
Station stock-based
compensation expense |
|
(263,787 |
) |
|
|
(149,367 |
) |
|
|
266,015 |
|
|
|
54,163 |
|
|
|
110,781 |
|
Corporate stock-based
compensation expense |
|
430,826 |
|
|
|
380,824 |
|
|
|
1,679,654 |
|
|
|
1,690,971 |
|
|
|
1,002,110 |
|
Transaction
expenses |
|
- |
|
|
|
217,909 |
|
|
|
110,901 |
|
|
|
963,979 |
|
|
|
349,917 |
|
Other operating
expenses |
|
- |
|
|
|
96,860 |
|
|
|
- |
|
|
|
968,603 |
|
|
|
- |
|
Depreciation and
amortization |
|
1,799,264 |
|
|
|
1,558,166 |
|
|
|
6,601,123 |
|
|
|
6,133,812 |
|
|
|
3,834,992 |
|
Change in fair value of
contingent consideration |
|
- |
|
|
|
(2,387,609 |
) |
|
|
4,415,925 |
|
|
|
(10,053,754 |
) |
|
|
- |
|
Gain on dispositions,
net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,707,993 |
) |
|
|
- |
|
Gain on exchange |
|
- |
|
|
|
(11,803,585 |
) |
|
|
- |
|
|
|
(11,803,585 |
) |
|
|
- |
|
Termination of
postretirement benefits plan |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,812,448 |
) |
|
|
- |
|
Impairment loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,520,933 |
|
Loss on modification of
long-term debt |
|
- |
|
|
|
3,954,035 |
|
|
|
281,021 |
|
|
|
3,954,035 |
|
|
|
558,856 |
|
Amortization of debt
issuance costs |
|
483,983 |
|
|
|
510,026 |
|
|
|
1,899,532 |
|
|
|
2,150,450 |
|
|
|
339,924 |
|
Interest income |
|
44,999 |
|
|
|
39,990 |
|
|
|
147,150 |
|
|
|
127,270 |
|
|
|
61,319 |
|
Other income (expense),
net |
|
(425,973 |
) |
|
|
(8,771 |
) |
|
|
(140,910 |
) |
|
|
(450,707 |
) |
|
|
(881,938 |
) |
Deferred income tax
expense |
|
5,267,704 |
|
|
|
(54,448,155 |
) |
|
|
8,008,104 |
|
|
|
(48,517,853 |
) |
|
|
1,790,111 |
|
Capital
expenditures |
|
(863,110 |
) |
|
|
(1,230,148 |
) |
|
|
(4,209,668 |
) |
|
|
(4,192,614 |
) |
|
|
(2,129,084 |
) |
FCF |
$ |
8,565,759 |
|
|
$ |
6,399,123 |
|
|
$ |
25,539,896 |
|
|
$ |
22,635,498 |
|
|
$ |
14,920,243 |
|
|
|
CONTACT: |
|
B. Caroline
Beasley |
Joseph Jaffoni,
Jennifer Neuman |
Chief Executive
Officer |
JCIR |
Beasley Broadcast
Group, Inc. |
212/835-8500 or
bbgi@jcir.com |
239/263-5000 or
ir@bbgi.com |
|
Beasley Broadcast (NASDAQ:BBGI)
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