Beasley Broadcast Group, Inc. (Nasdaq: BBGI), a large- and mid-size
market radio broadcaster, today announced operating results for the
three-month period ended March 31, 2005 in line with previously
issued guidance on April 14, 2005. For the three months ended March
31, 2005, consolidated net revenue increased 10% to $28.6 million
from $26.1 million in the same period of 2004. Operating income for
the period decreased 12% to $4.1 million from $4.7 million in the
first quarter of 2004, while Station Operating Income (SOI) fell 7%
to $6.6 million in the first quarter of 2005 from $7.1 million in
the year-ago period. Operating results reflect a 16% increase in
station operating expenses, which includes approximately $1.4
million of non-recurring employee separation costs, as well as
higher programming and promotional expenses. Station operating
expenses consist of cost of services (excluding depreciation and
amortization) and selling, general and administrative expenses. Net
income for the period ended March 31, 2005 rose to $1.6 million, or
$0.7 per diluted share, from $0.2 million, or $0.01 per diluted
share, in the comparable year-ago period. Net income for the 2004
period reflects a $2.4 million loss on extinguishment of long-term
debt. Per share results for the first quarters of 2005 and 2004 are
based on 24,551,108 and 24,773,845 shares outstanding on a fully
diluted basis, respectively. Commenting on the results, George G.
Beasley, Chairman and Chief Executive Officer, said, "As noted in
our preview of first quarter results, consolidated net revenue
growth during the first quarter was consistently strong in each
month of the period. The increase reflects improved performances at
seven of our ten market clusters, including continued gains at our
Philadelphia, Las Vegas and Ft. Myers clusters. Excluding the
non-recurring employee separation cost, station operating expenses
increased approximately 9%, reflecting our continued investment in
station programming and promotions, which we believe makes our
clusters more competitive." "We also continued to invest in HD
Radio(TM) technology during the period. By the end of 2005, we
expect to have at least 50 percent of our stations broadcasting
with this technology. We believe HD Radio's higher fidelity, its
ability to multi-cast several programs at once, and its ability to
provide listeners with a richer entertainment experience through
music, traffic or weather data will provide an attractive return on
this investment in the years to come." Second Quarter Guidance For
the three-month period ending June 30, 2005, the Company
anticipates reporting a net revenue increase of up to 5% over
year-ago levels, reflecting continued strength at its Philadelphia
market cluster. This guidance is based on the economic and market
conditions as of May 2, 2005, and assumes no material changes in
economic conditions or other major world events. The Company can
give no assurance as to whether these conditions will continue, or
if they change, how such changes may affect the Company's current
expectations. While the Company may, from time to time, issue
updated guidance, it assumes no obligation to do so. Conference
Call Information The Company will host a conference call and
simultaneous webcast today, May 2, 2005, at 10:00 a.m. EDT to
discuss its financial results and operations. Both the call and
webcast are open to the general public. The dial in number for the
conference call is 973-409-9261; please call five minutes in
advance to ensure that you are connected prior to the presentation.
Following its completion, a replay of the call can be accessed for
14 days on the Internet from the Company's Web site (www.bbgi.com)
or for 24 hours via telephone at 973/341-3080 (reservation
#5957910). About Beasley Broadcast Group Founded in 1961, Beasley
Broadcast Group, Inc. is a radio broadcasting company that owns or
operates 41 stations (26 FM and 15 AM) located in ten large- and
mid-size markets in the United States. Definitions Same-station
results compare stations operated by our company at March 31, 2005
to those same-stations operated by our company at March 31, 2004.
Station Operating Income (SOI) consists of net revenue less station
operating expenses. We define station operating expenses as costs
of services (excluding depreciation and amortization) and selling,
general and administrative expenses. SOI and same-station SOI are
financial measures of performance that are not calculated in
accordance with U.S. generally accepted accounting principles. We
use these non-GAAP financial measures for internal budgeting
purposes and to evaluate the performance of our radio stations.
Management uses SOI to evaluate the operating performance of our
radio stations because SOI enables management to measure the
performance of our radio stations before non-cash expenses for
depreciation and amortization and general and administrative costs
and expenses related to our corporate and capital structure.
Management also uses SOI to make decisions as to the acquisition
and disposition of radio stations. SOI excludes recurring non-cash
and corporate-level costs and expenses, which may also be material
to an assessment of the Company's overall operating performance.
Management compensates for this limitation by separately
considering the impact of these excluded items to the extent they
are material to operating decisions or assessments of the Company's
operating performance. Moreover, the corresponding amounts of the
non-cash and corporate-level costs and expenses excluded from the
calculation are available to investors as they are presented as
separate line items on our statements of operations contained in
our periodic reports filed with the SEC. While the Company
recognizes that because SOI is not calculated in accordance with
U.S. generally accepted accounting principles, it is not
necessarily comparable to similarly titled measures employed by
other companies, SOI is a measure widely used in the radio
broadcast industry. 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. We also believe
that providing SOI on a same station basis is a useful measure of
our performance because it presents SOI before the impact of any
acquisitions or dispositions completed during the relevant periods.
This allows management and investors to measure the performance of
radio stations we owned and operated during the entirety of two
operating periods being compared. 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 "intends", "expects," "expected," "anticipates"
or variations of such words and similar expressions are intended to
identify such forward-looking statements. Key risks are described
in the Company's reports filed with the Securities and Exchange
Commission (SEC). Readers should note that these statements are
subject to change and to inherent risks and uncertainties and may
be impacted by several factors, including: economic and regulatory
changes, the loss of key personnel, a downturn in the performance
of our large-market radio stations, the Company's substantial debt
levels, and changes in the radio broadcast industry generally. The
Company's actual performance and results could differ materially
because of these factors and other factors discussed in the
"Management's Discussion and Analysis of Results of Operations and
Financial Condition" of 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. These statements do not include the
potential impact of any acquisitions or dispositions announced or
completed after May 2, 2005. All information in this release is as
of May 2, 2005, and the Company undertakes no obligation to update
the information contained herein to actual results or changes to
the Company's expectations. -0- *T BEASLEY BROADCAST GROUP, INC.
Consolidated Statements of Operations (unaudited) Three Months
Ended March 31, 2005 2004 ------------ ------------ Net revenue
$28,636,183 $26,068,618 ------------ ------------ Costs and
expenses: Cost of services (excluding depreciation and
amortization) 9,849,947 8,923,760 Selling, general and
administrative 12,174,373 10,039,239 Corporate general and
administrative 1,632,218 1,562,610 Depreciation and amortization
846,588 822,826 ------------ ------------ Total costs and expenses
24,503,126 21,348,435 Operating income 4,133,057 4,720,183 Interest
expense (1,758,895) (1,964,500) Loss on extinguishment of long-term
debt (1) -- (2,418,781) Gain on increase in fair value of
derivative financial instruments -- 39,113 Interest income 124,654
88,856 Other non-operating income (expense) 200,289 (60,070)
------------ ------------ Income before income taxes 2,699,105
404,801 Income tax expense 1,071,545 161,920 ------------
------------ Net income $1,627,560 $242,881 ============
============ Basic and diluted net income per share $0.07 $0.01
============ ============ Basic common shares outstanding
24,234,975 24,275,700 ============ ============ Diluted common
shares outstanding 24,551,108 24,773,845 ============ ============
(1) In the 2004 first quarter, Beasley incurred a loss on
extinguishment of debt of $2.4 million to write-off debt issuance
costs related to the old credit facility and certain fees related
to establish a new credit facility. Selected Balance Sheet Data
(Unaudited) (in thousands) -------------------------- March 31,
December 31, 2005 2004 ------------ ------------ Cash and cash
equivalents $17,149 $14,850 Working capital 25,012 26,580 Total
assets 286,337 286,300 Long term debt, less current installments
148,487 153,362 Total stockholders' equity 82,103 81,075 Selected
Statement of Cash Flows Data (Unaudited) (in thousands)
-------------------------- Three Months Ended March 31,
-------------------------- 2005 2004 ------------ ------------ Net
cash provided by operating activities $5,057 $7,649 Net cash
provided by (used in) investing activities 216 (1,029) Net cash
used in financing activities (2,975) (4,284) Net increase in cash
and cash equivalents 2,298 2,336 Calculation of SOI (Unaudited):
------------------------------- -------------------------- Three
Months Ended March 31, -------------------------- 2005 2004
------------ ------------ Net revenue $28,636,183 $26,068,618
Station operating expenses (22,024,320) (18,962,999) ------------
------------ SOI $6,611,863 $7,105,619 ============ ============
Reconciliation of SOI to Net Income (Unaudited):
------------------------------------------------
-------------------------- Three Months Ended March 31,
-------------------------- 2005 2004 ------------ ------------ SOI
$6,611,863 $7,105,619 Corporate general and administrative
(1,632,218)) (1,562,610) Depreciation and amortization (846,588)
(822,826) Interest expense (1,758,895) (1,964,500) Loss on
extinguishment of long-term debt -- (2,418,781) Gain on increase in
fair value of derivative financial instruments -- 39,113 Interest
income 124,654 88,856 Other non-operating income (expense) 200,289
(60,070) Income tax expense (1,071,545) (161,920) ------------
------------ Net income $1,627,560 $242,881 ============
============ *T
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