|
Webcast: Today, March 6, 2015 at
10:00 a.m. ET |
www.bbgi.com |
|
Replay information provided
below |
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 and
twelve month periods ended December 31, 2014.
On December 1, 2014 the Company completed an Asset Exchange with
CBS Radio Stations Inc. (CBS Radio) whereby Beasley exchanged a
total of five radio stations in the Philadelphia and Miami-Fort
Lauderdale markets for a total of fourteen CBS Radio stations in
the Tampa-St. Petersburg, Charlotte and Philadelphia
markets. As a result of the transaction, in accordance with
U.S. generally accepted accounting principles ("GAAP"), the Company
is required to report the five stations that CBS Radio received
under "discontinued operations" for the 2014 fourth quarter and
full year, despite having operated them through November. In
addition, on a GAAP basis, the fourteen stations that the Company
received in the asset exchange are included in the 2014 fourth
quarter and full year operating results only for the month of
December. The table below summarizes the results of continuing
and discontinued operations for the three and twelve month periods
ended December 31, 2014 and 2013.
Summary of Fourth
Quarter and Full Year 2014 Results |
|
|
|
In millions, except per share
data |
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Continuing
Operations |
|
|
|
|
Net revenue |
$18.6 |
$15.0 |
$58.7 |
$56.1 |
Station operating income (SOI)
(non-GAAP) |
6.3 |
5.5 |
18.4 |
18.8 |
Operating income (1) |
1.8 |
2.8 |
5.6 |
8.4 |
Net income (1) |
1.8 |
0.8 |
1.0 |
0.2 |
Net income per diluted share (1) |
$0.08 |
$0.04 |
$0.04 |
$0.01 |
|
|
|
|
|
Discontinued
Operations |
|
|
|
|
Net revenue |
$8.1 |
$12.3 |
$42.6 |
$48.8 |
Station operating income (SOI)
(non-GAAP) |
2.6 |
4.7 |
14.9 |
19.0 |
Operating income (2) |
56.8 |
4.6 |
68.8 |
18.5 |
Net income (2) |
32.0 |
2.8 |
39.0 |
11.3 |
Net income per diluted share (2) |
$1.39 |
$0.12 |
$1.70 |
$0.50 |
|
|
|
|
|
Combined Operations
(continuing and discontinued operations)
(non-GAAP) |
|
|
|
|
Net revenue |
$26.7 |
$27.3 |
$101.3 |
$104.9 |
Station operating income (SOI) |
8.9 |
10.2 |
33.2 |
37.9 |
Operating income (3) |
58.6 |
7.4 |
74.3 |
26.8 |
Net income (3) |
33.8 |
3.6 |
40.0 |
11.5 |
Net income per diluted share
attributable to Beasley Broadcast shareholders (3) |
$1.47 |
$0.16 |
$1.74 |
$0.51 |
|
(1) Operating income, net income and net
income per diluted share from continuing operations for the three
and twelve month periods ended December 31, 2014 were impacted by a
total of $1.7 million of transaction and termination expenses
related to the Asset Exchange with CBS Radio. Net income and net
income per diluted share for the twelve month period ended December
31, 2013 were impacted by a pre-tax $1.0 million fee incurred in
connection with debt pre-payment and a non-cash pre-tax charge of
$1.3 million for loss on extinguishment of long-term debt incurred
in connection with an amended credit agreement and debt
pre-payment. |
(2) Operating income, net income and net
income per diluted share from discontinued operations for the three
and twelve month periods ended December 31, 2014 reflect a $54.3
million pre-tax gain related to the Asset Exchange with CBS
Radio. |
(3) Operating income, net income and net
income per diluted share from combined operations for the three and
twelve month periods ended December 31, 2014 were impacted by a
total of $1.7 million of transaction and termination expenses
related to the Asset Exchange with CBS Radio. Net income and net
income per diluted share for the twelve month period ended December
31, 2013 were impacted by a pre-tax $1.0 million fee incurred in
connection with debt pre-payment and a non-cash pre-tax charge of
$1.3 million for loss on extinguishment of long-term debt incurred
in connection with an amended credit agreement and debt
pre-payment. Operating income, net income and net income per
diluted share for the three and twelve month periods ended December
31, 2014 reflect a $54.3 million pre-tax gain related to the Asset
Exchange with CBS Radio. |
Please refer to the "Calculation of SOI," "Reconciliation of SOI
to Net Income," "Calculation of Same-Station SOI," and
"Reconciliation of Same-Station SOI to Net Income" tables at the
end of this announcement for a discussion regarding SOI
calculations. "Continuing & Discontinued Operations," is the
sum of Continuing Operations and Discontinued Operations. Please
refer to the "Pro Forma" and "Reconciliation of Pro Forma SOI to
Net Income" tables at the end of this announcement for a discussion
regarding our pro forma results.
Commenting on the results, George G. Beasley, Chairman and Chief
Executive Officer, said, "On a reported basis, fourth quarter net
revenue from continuing operations rose 23.5% and SOI increased
14.6%, while operating income of $1.8 million was impacted by $1.7
million of transaction and termination expenses related to the
Asset Exchange and otherwise would have compared favorably with the
$2.8 million in the comparable year ago period.
"However, given the required accounting treatment for
discontinued operations, the results include only one month of
operations from the stations we received in the asset exchange,
while excluding the results of the stations we gave up in the
transaction. As a result, we believe a pro forma presentation,
which assumes the asset exchange occurred on January 1, 2013,
better reflects the operating results. On a pro forma basis, fourth
quarter net revenue decreased 4.3% to $28.9 million while SOI
declined 8.0% to $9.2 million. Importantly, while the fourth
quarter pro forma presentation allows for a comparison of the same
stations during both periods, it does not reflect our recently
initiated and planned format and personnel changes in Tampa as well
as expense reductions in Tampa and Charlotte, the benefits of which
we expect will be reflected in our results as we move through 2015
and into 2016.
"With respect to the new markets we now operate in, Tampa-St.
Petersburg is the nation's 18th largest radio market when ranked by
revenue while Charlotte is the nation's 24th largest radio revenue
market. The six station cluster we now operate in Tampa-St.
Petersburg is already competitive on a revenue share basis, and we
have initiated several strategies to capitalize on the significant
upside in this cluster. We've already changed the format of one
station from sports talk to rock and anchored the station with the
market's leading morning show personality. We've made other
changes in Tampa including transferring two proven Beasley managers
to lead our operations in the market and appointing a new Director
of Sales for the cluster who brings long-term radio and digital
experience to his role in Tampa.
"The seven station cluster we acquired in Charlotte is a market
revenue share leader, so our strategies in this market to drive SOI
growth are focused on extending successes and driving efficiencies
in operations and processes. Overall, our post-closing
integration, cost-efficiency and operating plans in both markets,
combined with our legacy focus on targeted localism and delivering
quality programming, effective online marketing solutions and
dedicated service to the listeners and advertisers in these markets
are proceeding on schedule.
"In addition to our initiatives during the quarter to expand and
diversify our station and digital media operations, we continue to
focus on debt reduction and returning capital to
shareholders. During the fourth quarter we made credit
facility repayments totaling $1.3 million, reducing borrowings to
$97.7 million at December 31, 2014 and declared our fifth
consecutive quarterly cash dividend.
"Looking forward, we are focused on ensuring that our station
clusters match or exceed their market's revenue performance while
further strengthening our balance sheet. We are actively
executing post-closing integration, programming, personnel,
cost-efficiency and operating plans and results to date are
tracking with our expectations. Our operating initiatives
continue to focus on targeted localism and delivering quality
programming, effective online marketing solutions and dedicated
service to the listeners and advertisers in our markets. These
strategies have created long-term value for Beasley Broadcast Group
and we are confident that the application of our operating and
programming disciplines combined with our commitment to build
strong community involvement in our markets will support our goals
for growth and the enhancement of shareholder value."
Webcast Information
The Company will host a webcast today, March 6, 2015, 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 53 stations (34
FM and 19 AM) located in twelve large- and mid-size markets in the
United States.
Definitions
Combined operations (non-GAAP) consists of continuing operations
and discontinued operations and financial metrics presented as
combined operations are calculated by adding together the
respective continuing operations and discontinued operations
financial metric being presented. Station 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.
Same-station results, as presented herein, compare stations
operated by the Company throughout all periods presented in the
following tables. For the three months ended December 31, 2014,
same-station results exclude revenue and expenses from Tampa-St.
Petersburg, Charlotte, and WTEL-AM in Philadelphia, all of which
were acquired in December 2014. For the twelve months ended
December 31, 2014, same-station results exclude revenue and
expenses from Tampa-St. Petersburg, Charlotte, and WTEL-AM in
Philadelphia, and KVGS-FM in Las Vegas, which was acquired in
September 2013. For the twelve months ended December 31, 2013,
same-station results exclude revenue and expenses from KVGS-FM in
Las Vegas.
Pro forma results, as presented herein, assume the asset
exchange occurred on January 1, 2013. For the three months ended
December 31, 2014 and 2013, pro forma results include revenue and
expenses from our stations received in Tampa-St. Petersburg,
Charlotte, and WTEL-AM in Philadelphia, for the periods from
October 1 to November 30, 2014 and the fourth quarter of 2013,
respectively. For the twelve months ended December 31, 2014 and
2013, pro forma results include revenue and expenses from our
stations received in Tampa-St. Petersburg, Charlotte, and WTEL-AM
in Philadelphia, for the periods from January 1 to November 30,
2014 and the full year of 2013, respectively.
SOI, SOI from continuing operations, SOI from discontinued
operations, SOI from combined operations and same-station SOI are
financial measures of performance that are not calculated in
accordance with GAAP. We use these non-GAAP financial
measures for internal budgeting purposes. We also use SOI to
make decisions as to the acquisition and disposition of radio
stations. SOI, SOI from continuing operations, SOI from
discontinued operations, SOI from combined operations and
same-station SOI exclude corporate-level costs and expenses and
depreciation and amortization, which may 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 on
our statements of operations contained in our periodic reports
filed with the Securities and Exchange Commission (SEC).
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. 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 investors to measure the
performance of radio stations we owned and operated during the
entirety of the 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 "expects," "anticipates," "intends," "plans,"
"believes," "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,
2013. 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 Results of Operations
and Financial Condition" 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 March 6, 2015, 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
Ended December 31, |
Year Ended
December 31, |
|
2014 |
2013 |
2014 |
2013 |
Net revenue |
$18,562,069 |
$15,027,736 |
$58,705,903 |
$56,097,960 |
Operating expenses: |
|
|
|
|
Station operating expenses (including
stock-based compensation and excluding depreciation and
amortization shown separately below) (2) |
12,261,368 |
9,531,608 |
40,351,258 |
37,253,276 |
Corporate general and administrative
expenses (including stock-based compensation) (3) |
2,110,910 |
2,243,679 |
8,923,117 |
8,624,395 |
Radio station exchange transaction
cost |
1,261,318 |
-- |
1,261,318 |
-- |
Employee termination expenses |
458,585 |
-- |
458,585 |
-- |
Other operating expenses |
-- |
-- |
-- |
185,916 |
Depreciation and amortization |
715,412 |
437,595 |
2,151,949 |
1,656,015 |
Total operating expenses |
16,807,593 |
12,212,882 |
53,146,227 |
47,719,602 |
Operating income |
1,754,476 |
2,814,854 |
5,559,676 |
8,378,358 |
Non-operating income (expense): |
|
|
|
|
Interest expense |
(970,513) |
(1,370,072) |
(4,375,129) |
(7,081,801) |
Loss on extinguishment of long-term
debt |
-- |
-- |
(30,569) |
(1,260,784) |
Other income (expense), net |
24,201 |
(17,910) |
326,282 |
80,444 |
Income from continuing operations before
income taxes |
808,164 |
1,426,872 |
1,480,260 |
116,217 |
Income tax expense (benefit) |
(1,021,611) |
604,288 |
514,275 |
(129,433) |
Income from continuing operations |
1,829,775 |
822,584 |
965,985 |
245,650 |
Income from discontinued operations (net of
income taxes) |
32,006,621 |
2,758,332 |
39,033,382 |
11,300,613 |
Net income |
$33,836,396 |
$3,580,916 |
$39,999,367 |
$11,546,263 |
|
|
|
|
|
Basic net income per share: |
|
|
|
|
Continuing operations |
$ 0.08 |
$ 0.04 |
$ 0.04 |
$ 0.01 |
Discontinued operations |
$ 1.40 |
$ 0.12 |
$ 1.71 |
$ 0.50 |
Net income per share |
$ 1.48 |
$ 0.16 |
$ 1.75 |
$ 0.51 |
Diluted net income per share: |
|
|
|
|
Continuing operations |
$ 0.08 |
$ 0.04 |
$ 0.04 |
$ 0.01 |
Discontinued operations |
$ 1.39 |
$ 0.12 |
$ 1.70 |
$ 0.50 |
Net income per share |
$ 1.47 |
$ 0.16 |
$ 1.74 |
$ 0.51 |
Basic common shares outstanding |
22,824,920 |
22,745,384 |
22,811,825 |
22,735,774 |
Diluted common shares outstanding |
22,949,058 |
22,857,365 |
22,944,815 |
22,838,209 |
|
(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 $(74,196) and $(4,458) for the three months ended
December 31, 2014 and 2013, respectively and $101,362 and $21,371
for the twelve months ended December 31, 2014 and 2013,
respectively. |
(3) Includes stock-based
compensation of $297,493 and $191,471 for the three months ended
December 31, 2014 and 2013, respectively and $1,216,540 and
$671,724 for the twelve months ended December 31, 2014 and 2013,
respectively. |
|
Selected Balance Sheet
Data - Unaudited |
(in
thousands) |
|
|
|
|
December 31,
2014 |
December 31,
2013 |
Cash and cash equivalents |
$ 14,259 |
$ 14,299 |
Working capital |
21,511 |
21,535 |
Total assets |
315,967 |
264,209 |
Long term debt, net of current portion |
94,581 |
102,625 |
Stockholders' equity |
$ 130,542 |
$ 93,626 |
|
|
Selected Statement of
Cash Flows Data – Unaudited |
|
|
|
Year
Ended December 31, |
|
2014 |
2013 |
Net cash provided by operating
activities |
$ 16,913,700 |
$ 19,913,684 |
Net cash used in investing activities |
(2,931,179) |
(6,655,233) |
Net cash used in financing activities |
(14,022,093) |
(10,620,086) |
Net increase (decrease) in cash and cash
equivalents |
$ (39,572) |
$ 2,638,365 |
|
Calculation of
SOI – Unaudited |
|
|
|
|
Three Months
Ended December 31, |
Year
Ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Net revenue |
$ 18,562,069 |
$ 15,027,736 |
$ 58,705,903 |
$ 56,097,960 |
Station operating expenses |
(12,261,368) |
(9,531,608) |
(40,351,258) |
(37,253,276) |
SOI |
$ 6,300,701 |
$ 5,496,128 |
$ 18,354,645 |
$ 18,844,684 |
|
|
Reconciliation of SOI
to Net Income - Unaudited |
|
|
|
|
|
|
Three Months
Ended December 31, |
Year
Ended December 31, |
|
|
2014 |
2013 |
2014 |
2013 |
|
SOI |
$ 6,300,701 |
$ 5,496,128 |
$ 18,354,645 |
$ 18,844,684 |
|
Corporate general and administrative
expenses |
(2,110,910) |
(2,243,679) |
(8,923,117) |
(8,624,395) |
|
Radio station exchange transaction cost |
(1,261,318) |
-- |
(1,261,318) |
-- |
|
Employee termination expenses |
(458,585) |
-- |
(458,585) |
-- |
|
Other operating expenses |
-- |
-- |
-- |
(185,916) |
|
Depreciation and amortization |
(715,412) |
(437,595) |
(2,151,949) |
(1,656,015) |
|
Interest expense |
(970,513) |
(1,370,072) |
(4,375,129) |
(7,081,801) |
|
Loss on extinguishment of long-term debt |
-- |
-- |
(30,569) |
(1,260,784) |
|
Other income (expense), net |
24,201 |
(17,910) |
326,282 |
80,444 |
|
Income tax (expense) benefit |
1,021,611 |
(604,288) |
(514,275) |
129,433 |
|
Discontinued operations |
32,006,621 |
2,758,332 |
39,033,382 |
11,300,613 |
|
Net income |
$ 33,836,396 |
$ 3,580,916 |
$ 39,999,367 |
$ 11,546,263 |
|
|
|
Calculation of
Same-Station SOI - Unaudited |
|
|
|
|
Three Months
Ended December 31, |
Year
Ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Reported net revenue |
18,562,069 |
15,027,736 |
58,705,903 |
56,097,960 |
Tampa-St. Petersburg |
(1,602,676) |
-- |
(1,602,676) |
-- |
Charlotte |
(2,453,429) |
-- |
(2,453,429) |
-- |
WTEL-AM |
(72,967) |
-- |
(72,967) |
-- |
KVGS-FM |
-- |
-- |
(1,890,942) |
(688,922) |
Same-station net revenue |
14,432,997 |
15,027,736 |
52,685,889 |
55,409,038 |
|
|
|
|
|
Reported station operating expenses |
12,261,368 |
9,531,608 |
40,351,258 |
37,253,276 |
Tampa-St. Petersburg |
(1,274,192) |
-- |
(1,274,192) |
-- |
Charlotte |
(1,520,024) |
-- |
(1,520,024) |
-- |
WTEL-AM |
(7,112) |
-- |
(7,112) |
-- |
KVGS-FM |
-- |
-- |
(1,573,949) |
(420,427) |
Same-station station operating expenses |
9,460,040 |
9,531,608 |
35,975,981 |
36,832,849 |
|
|
|
|
|
Same-station net revenue |
14,432,997 |
15,027,736 |
52,685,889 |
55,409,038 |
Same-station station operating expenses |
9,460,040 |
9,531,608 |
35,975,981 |
36,832,849 |
Same-station SOI |
4,972,957 |
5,496,128 |
16,709,908 |
18,576,189 |
|
|
Reconciliation of
Same-Station SOI to Net Income -
Unaudited |
|
|
|
|
Three Months
Ended December 31, |
Year
Ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Same-station SOI |
4,972,957 |
5,496,128 |
16,709,908 |
$ 18,576,189 |
Same-station net revenue adjustment |
4,129,072 |
-- |
6,020,014 |
688,922 |
Same-station station operating expenses
adjustment |
(2,801,328) |
-- |
(4,375,277) |
(420,427) |
Corporate general and administrative
expenses |
(2,110,910) |
(2,243,679) |
(8,923,117) |
(8,624,395) |
Radio station exchange transaction costs |
(1,261,318) |
-- |
(1,261,318) |
-- |
Employee termination expenses |
(458,585) |
-- |
(458,585) |
-- |
Other operating expenses |
-- |
-- |
-- |
(185,916) |
Depreciation and amortization |
(715,412) |
(437,595) |
(2,151,949) |
(1,656,015) |
Interest expense |
(970,513) |
(1,370,072) |
(4,375,129) |
(7,081,801) |
Loss on extinguishment of long-term debt |
-- |
-- |
(30,569) |
(1,260,784) |
Other income (expense), net |
24,201 |
(17,910) |
326,282 |
80,444 |
Income tax (expense) benefit |
1,021,611 |
(604,288) |
(514,275) |
129,433 |
Discontinued operations |
32,006,621 |
2,758,332 |
39,033,382 |
11,300,613 |
Net income |
33,836,396 |
3,580,916 |
39,999,367 |
11,546,263 |
|
|
Calculation of SOI –
Discontinued Operations - Unaudited |
|
|
|
|
Three Months
Ended |
Year
Ended |
|
December
31, |
December
31, |
|
2014 |
2013 |
2014 |
2013 |
Net revenue |
$8,120,794 |
$12,259,780 |
$42,621,758 |
$48,807,760 |
Station operating expenses |
(5,564,225) |
(7,530,055) |
(27,732,682) |
(29,790,863) |
SOI |
$2,556,569 |
$4,729,725 |
$14,889,076 |
$19,016,897 |
|
|
|
|
|
|
Reconciliation of SOI
to Net Income – Discontinued Operations -
Unaudited |
|
|
|
|
Three Months
Ended |
Year
Ended |
|
December
31, |
December
31, |
|
2014 |
2013 |
2014 |
2013 |
SOI |
$2,556,569 |
$4,729,725 |
$14,889,076 |
$19,016,897 |
Employee termination expenses |
(62,500) |
-- |
(62,500) |
-- |
Depreciation and amortization |
47,009 |
(142,638) |
(374,002) |
(564,626) |
Gain on exchange of radio stations |
54,306,974 |
-- |
54,306,974 |
-- |
Other income (expense), net |
-- |
1,275 |
(330,416) |
9,314 |
Income tax expense |
(24,841,431) |
(1,830,030) |
(29,395,750) |
(7,160,972) |
Net income |
$32,006,621 |
$2,758,332 |
$39,033,382 |
$11,300,613 |
|
|
|
|
|
|
|
|
|
|
Calculation of SOI –
Combined Operations |
(continuing and
discontinued operations) - Unaudited |
|
|
|
|
Three Months
Ended |
Year
Ended |
|
December
31, |
December
31, |
|
2014 |
2013 |
2014 |
2013 |
Net revenue |
$26,682,863 |
$27,287,516 |
$101,327,661 |
$104,905,720 |
Station operating expenses |
(17,825,593) |
(17,061,663) |
(68,083,940) |
(67,044,139) |
SOI |
$8,857,270 |
$10,225,853 |
$33,243,721 |
$37,861,581 |
|
|
|
|
|
|
Reconciliation of SOI
to Net Income – Combined Operations |
(continuing and
discontinued operations) - Unaudited |
|
|
|
|
Three Months
Ended |
Year
Ended |
|
December
31, |
December
31, |
|
2014 |
2013 |
2014 |
2013 |
SOI |
$8,857,270 |
$10,225,853 |
$33,243,721 |
$37,861,581 |
Corporate general and administrative
expenses |
(2,110,910) |
(2,243,679) |
(8,923,117) |
(8,624,395) |
Radio station exchange transaction costs |
(1,261,318) |
-- |
(1,261,318) |
-- |
Employee termination expenses |
(521,085) |
-- |
(521,085) |
-- |
Other operating expenses |
-- |
-- |
-- |
(185,916) |
Depreciation and amortization |
(668,403) |
(580,233) |
(2,525,951) |
(2,220,641) |
Gain on exchange of radio stations |
54,306,974 |
-- |
54,306,974 |
-- |
Interest expense |
(970,513) |
(1,370,072) |
(4,375,129) |
(7,081,801) |
Loss on extinguishment of long-term debt |
-- |
-- |
(30,569) |
(1,260,784) |
Other income (expense), net |
24,201 |
(16,635) |
(4,134) |
89,758 |
Income tax expense |
(23,819,820) |
(2,434,318) |
(29,910,025) |
(7,031,539) |
Net income |
$33,836,396 |
$3,580,916 |
$39,999,367 |
$11,546,263 |
|
|
|
|
|
Three Months
Ended December 31, 2014 (unaudited) |
|
Continuing
Operations |
Discontinued
Operations |
Combined
Operations |
Net revenue |
$18,562,069 |
$8,120,794 |
$26,682,863 |
Operating expenses: |
|
|
|
Station operating expenses |
12,261,368 |
5,564,225 |
17,825,593 |
Corporate general and administrative
expenses |
2,110,910 |
-- |
2,110,910 |
Radio station exchange transaction
costs |
1,261,318 |
-- |
1,261,318 |
Employee termination expenses |
458,585 |
62,500 |
521,085 |
Depreciation and amortization |
715,412 |
(47,009) |
668,403 |
Gain on exchange of radio stations |
-- |
(54,306,974) |
(54,306,974) |
Total operating expenses |
16,807,593 |
(48,727,258) |
(31,919,665) |
Operating income |
1,754,476 |
56,848,052 |
58,602,528 |
Non-operating income (expense): |
|
|
|
Interest expense |
(970,513) |
-- |
(970,513) |
Other income (expense), net |
24,201 |
-- |
24,201 |
Income from continuing operations before
income taxes |
808,164 |
56,848,052 |
57,656,216 |
Income tax expense (benefit) |
(1,021,611) |
24,841,431 |
23,819,820 |
Net income |
1,829,775 |
32,006,621 |
33,836,396 |
|
|
|
Three Months
Ended December 31, 2013 (unaudited) |
|
Continuing
Operations |
Discontinued
Operations |
Combined
Operations |
Net revenue |
$15,027,736 |
$12,259,780 |
$27,287,516 |
Operating expenses: |
|
|
|
Station operating expenses |
9,531,608 |
7,530,055 |
17,061,663 |
Corporate general and administrative
expenses |
2,243,679 |
-- |
2,243,679 |
Depreciation and amortization |
437,595 |
142,638 |
580,233 |
Total operating expenses |
12,212,882 |
7,672,693 |
19,885,575 |
Operating income |
2,814,854 |
4,587,087 |
7,401,941 |
Non-operating income (expense): |
|
|
|
Interest expense |
(1,370,072) |
-- |
(1,370,072) |
Other income (expense), net |
(17,910) |
1,275 |
(16,635) |
Income from continuing operations before
income taxes |
1,426,872 |
4,588,362 |
6,015,234 |
Income tax expense |
604,288 |
1,830,030 |
2,434,318 |
Net income |
822,584 |
2,758,332 |
3,580,916 |
|
|
|
Year
Ended Year Ended December 31, 2014
(unaudited) |
|
Continuing
Operations |
Discontinued
Operations |
Combined
Operations |
Net revenue |
$58,705,903 |
$42,621,758 |
$101,327,661 |
Operating expenses: |
|
|
|
Station operating expenses |
40,351,258 |
27,732,682 |
68,083,940 |
Corporate general and administrative
expenses |
8,923,117 |
-- |
8,923,117 |
Radio station exchange transaction
cost |
1,261,318 |
-- |
1,261,318 |
Employee termination expenses |
458,585 |
62,500 |
521,085 |
Depreciation and amortization |
2,151,949 |
374,002 |
2,525,951 |
Gain on exchange of radio stations |
-- |
(54,306,974) |
(54,306,974) |
Total operating expenses |
53,146,227 |
(26,137,790) |
27,008,437 |
Operating income |
5,559,676 |
68,759,548 |
74,319,224 |
Non-operating income (expense): |
|
|
|
Interest expense |
(4,375,129) |
-- |
(4,375,129) |
Loss on extinguishment of long-term
debt |
(30,569) |
-- |
(30,569) |
Other income (expense), net |
326,282 |
(330,416) |
(4,134) |
Income from continuing operations before
income taxes |
1,480,260 |
68,429,132 |
69,909,392 |
Income tax expense |
514,275 |
29,395,750 |
29,910,025 |
Net income |
965,985 |
39,033,382 |
39,999,367 |
|
|
|
Year Ended
December 31, 2013 (unaudited) |
|
Continuing
Operations |
Discontinued
Operations |
Combined
Operations |
Net revenue |
$56,097,960 |
$48,807,760 |
$104,905,720 |
Operating expenses: |
|
|
|
Station operating expenses |
37,253,276 |
29,790,863 |
67,044,139 |
Corporate general and administrative
expenses |
8,624,395 |
-- |
8,624,395 |
Other operating expenses |
185,916 |
-- |
185,916 |
Depreciation and amortization |
1,656,015 |
564,626 |
2,220,641 |
Total operating expenses |
47,719,602 |
30,355,489 |
78,075,091 |
Operating income |
8,378,358 |
18,452,271 |
26,830,629 |
Non-operating income (expense): |
|
|
|
Interest expense |
(7,081,801) |
-- |
(7,081,801) |
Loss on extinguishment of long-term
debt |
(1,260,784) |
-- |
(1,260,784) |
Other income (expense), net |
80,444 |
9,314 |
89,758 |
Income from continuing operations before
income taxes |
116,217 |
18,461,585 |
18,577,802 |
Income tax expense (benefit) |
(129,433) |
7,160,972 |
7,031,539 |
Net income |
245,650 |
11,300,613 |
11,546,263 |
|
|
Pro Forma |
|
|
|
|
Three Months
Ended December 31, |
Year
Ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Reported net revenue |
18,562,069 |
15,027,736 |
58,705,903 |
56,097,960 |
Tampa |
4,116,213 |
6,531,540 |
22,931,163 |
26,050,480 |
Charlotte |
6,042,687 |
8,393,834 |
29,948,041 |
31,087,111 |
WTEL-AM |
172,480 |
251,793 |
588,878 |
1,158,124 |
Pro forma net revenue |
28,893,449 |
30,204,903 |
112,173,985 |
114,393,675 |
|
|
|
|
|
Reported station operating expenses |
12,261,368 |
9,531,608 |
40,351,258 |
37,253,276 |
Tampa |
3,470,814 |
5,246,452 |
18,313,419 |
21,061,829 |
Charlotte |
3,877,992 |
5,345,261 |
20,026,843 |
21,835,543 |
WTEL-AM |
70,999 |
70,003 |
467,846 |
590,727 |
Pro-forma station operating expenses |
19,681,173 |
20,193,324 |
79,159,366 |
80,741,375 |
|
|
|
|
|
Pro forma net revenue |
28,893,449 |
30,204,903 |
112,173,985 |
114,393,675 |
Pro forma station operating expenses |
19,681,173 |
20,193,324 |
79,159,366 |
80,741,375 |
Pro forma SOI |
9,212,276 |
10,011,579 |
33,014,619 |
33,652,300 |
|
|
Reconciliation
of Pro Forma SOI to Net Income |
|
|
|
|
Three Months
Ended December 31, |
Year
Ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Pro forma SOI |
9,212,276 |
10,011,579 |
33,014,619 |
$ 33,652,300 |
Pro forma net revenue adjustment |
(10,331,380) |
(15,177,167) |
(53,468,082) |
(58,295,715) |
Pro forma station operating expenses
adjustment |
7,419,805 |
10,661,716 |
(38,808,108) |
(43,488,099) |
Corporate general and administrative
expenses |
(2,110,910) |
(2,243,679) |
(8,923,117) |
(8,624,395) |
Radio station exchange transaction costs |
(1,261,318) |
-- |
(1,261,318) |
-- |
Employee termination expenses |
(458,585) |
-- |
(458,585) |
-- |
Other operating expenses |
-- |
-- |
-- |
(185,916) |
Depreciation and amortization |
(715,412) |
(437,595) |
(2,151,949) |
(1,656,015) |
Interest expense |
(970,513) |
(1,370,072) |
(4,375,129) |
(7,081,801) |
Loss on extinguishment of long-term debt |
-- |
-- |
(30,569) |
(1,260,784) |
Other income (expense), net |
24,201 |
(17,910) |
326,282 |
80,444 |
Income tax (expense) benefit |
1,021,611 |
(604,288) |
(514,275) |
129,433 |
Discontinued operations |
32,006,621 |
2,758,332 |
39,033,382 |
11,300,613 |
Net income |
33,836,396 |
3,580,916 |
39,999,367 |
11,546,263 |
CONTACT: B. Caroline Beasley, 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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