Beasley Broadcast Group, Inc. (Nasdaq: BBGI) (“Beasley” or the
“Company”), a multi-platform media company, today announced
operating results for the for the three- and twelve-month periods
ended December 31, 2021.
Summary of Fourth Quarter and Full Year
Results
In millions, except per share data |
Three Months EndedDecember
31, |
Twelve Months EndedDecember
31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net revenue |
$70.7 |
$68.5 |
$241.4 |
$206.1 |
Operating income (loss) 1 |
|
6.5 |
|
19.6 |
|
14.7 |
|
(4.3) |
Net income (loss) 1 |
|
10.6 |
|
11.0 |
|
(1.5) |
|
(18.9) |
Net income (loss) per diluted share 1 |
$0.36 |
$0.38 |
($0.05) |
($0.63) |
Station operating income (SOI - non-GAAP) |
|
13.9 |
|
20.1 |
|
42.0 |
|
24.0 |
1 For the three-month periods, net income and
net income per diluted share reflect a $10.0 million gain on
forgiveness of long-term debt for the three months ended December
31, 2021, as well as a $4.4 million gain on dispositions, $3.6
million in other operating income and $2.2 million of non-cash
impairment losses in the three months ended December 31, 2020. For
the twelve-month periods, operating income (loss), net loss and net
loss per diluted share reflect a $0.2 million gain on dispositions,
$0.4 million in other operating income, $10.0 million gain on
forgiveness of long-term debt and a $5.0 million loss on the
extinguishment of long-term debt in the twelve months ended
December 31, 2021, as well as a $4.4 million gain on dispositions,
$3.0 million in other operating income, $9.0 million of non-cash
impairment losses and a $2.8 million loss on modification of
long-term debt in the twelve months ended December 31, 2020.
Net revenue during the three months ended
December 31, 2021 increased 3.3% to $70.7 million, primarily
reflecting a year-over-year increase in audio and digital
advertising revenue and other revenue due to the continued recovery
of the commercial advertising market from the effects of the
COVID-19 pandemic, partially offset by a decrease in political
revenue.
Beasley reported operating income of $6.5
million in the fourth quarter of 2021 compared to operating income
of $19.6 million in the fourth quarter of 2020. The decrease
largely reflects higher operating expenses related to the Company’s
digital agency build out, and the return of certain expenses that
had been reduced in 2020 due to temporary measures taken in
response to the COVID-19 pandemic. The comparable 2020 period also
benefitted from a $4.4 million gain on dispositions and $3.6
million in other operating income partially offset by $2.2 million
of non-cash impairment losses, which were non-recurring in
2021.
Interest expense increased $2.5 million to $6.8
million in the fourth quarter of 2021 resulting from the issuance
of senior secured notes in February 2021. Beasley recorded a $10.0
million gain on forgiveness of long-term debt as the Company’s loan
granted under Paycheck Protection Program received approval for
forgiveness in November 2021. As a result of these factors, Beasley
reported net income of $10.6 million, or $0.36 per diluted share,
in the three months ended December 31, 2021, compared to net income
of $11.0 million, or $0.38 per diluted share, in the three months
ended December 31, 2020.
SOI decreased by $6.2 million to $13.9 million
in the fourth quarter of 2021 from $20.1 million in the fourth
quarter of 2020. The decrease is primarily attributable to higher
operating expenses, including the continued build out of the
Company’s digital agency.
Please refer to the “Calculation of SOI” and
“Reconciliation of Net Income (Loss) Attributable to BBGI
Stockholders 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, “Beasley delivered a strong
finish to a solid year of operating and financial performance, as
the strength of our content and continuing improvement in
advertising trends, combined with the ongoing success of our
digital transformation and revenue diversification strategies,
continue to fuel our recovery. Throughout the year, we made
significant progress on our near-term goal of returning all of our
revenue sources to pre-pandemic levels, as reflected by the 17%
increase in full year net revenues to $241 million. Top-line growth
was the primary factor contributing to a 75% year-over-year
increase in SOI to $42.0 million. Overall, we believe these results
demonstrate the strength and relevance of our industry-leading
audio content and our teams’ extraordinary efforts to serve our
listeners, customers and communities through challenging
circumstances.
“Growing consumer and advertiser demand for
Beasley’s digital audio content drove a 47.3% year-over-year
increase in digital revenue, with digital accounting for 15% of
total fourth quarter revenue. Notably, our digital network
delivered record digital audience impressions for the third
consecutive quarter, with total digital impressions growing 20%
over third quarter 2021 levels and 39% over the prior year
period.
“Total outstanding debt as of December 31, 2021
was $300.0 million and we had $51.4 million of cash and cash
equivalents on hand. Our strong liquidity position enables us to
make debt repayments while providing us with increased financial
flexibility to pursue a potential acquisition or investment within
the digital space, should an opportunity arise that could
accelerate our digital growth or provide synergies and increased
free cash flow.
“I am extremely proud of Beasley’s valued team
members for their continued commitment to delivering exceptional
content and services to our listeners, advertisers, online users
and esports fans, while creating value for our stockholders. The
experience of our team and competitive positions in our markets
combined with the investments we are making in our business, are
positioning us well for continued success, particularly as economic
trends further improve. Our operating momentum has continued into
the first quarter of 2022, and looking forward, we remain focused
on serving our communities and taking advantage of upcoming
political advertising opportunities. Finally, we believe further
success on our revenue diversification and cash flow focus while
maintaining a solid and flexible balance sheet with liquidity at
current or higher levels, will best position Beasley for near- and
long-term success and the enhancement of stockholder value.”
Conference Call and Webcast Information
The Company will host a conference call and
webcast today, February 8, 2022, at 10:00 a.m. ET to discuss its
financial results and operations. To access the conference call,
interested parties may dial 773-305-6853, conference ID 2580362
(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 9:00 a.m. ET on Tuesday, February 8, 2022. 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
GroupThe Company owns and operates 62 stations (47 FM and
15 AM) in 15 large- and mid-size markets in the United States.
Approximately 20 million consumers listen to the Company’s 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 messaging, digital and web applications and email.
The Overwatch League’s Houston Outlaws esports team is a wholly
owned subsidiary. The Company also owns BeasleyXP, a national
esports content hub, and AXLR-R8, a Rocket League Championship
Series team, in its esports portfolio. For more information, please
visit www.bbgi.com.
For further information, or to receive future
Beasley Broadcast Group news announcements via e-mail, please
contact Beasley Broadcast Group, at 239-263-5000 or email@bbgi.com,
or Joseph Jaffoni, JCIR, at 212-835-8500 or bbgi@jcir.com.
Definitions
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.
Free Cash Flow (FCF) consists of SOI less
corporate expenses, interest expense, current income tax expense
and capital expenditures plus stock-based compensation expense, net
proceeds from dispositions, net insurance proceeds, 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 “intends,” “believes,”
“expects,” “seek,” “we remain optimistic that” 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.
Key risks are described in the Company’s reports filed with the
Securities and Exchange Commission (“SEC”) including its 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:
- the effects of the COVID-19 pandemic, including its potential
effects on the economic environment and our results of operations,
liquidity and financial condition, and the increased risk of
impairments of our Federal Communications Commission (“FCC”)
licenses and/or goodwill;
- external economic forces that could have a material adverse
impact on our advertising revenues and results of operations;
- the ability of our radio 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 radio
programs;
- our ability to respond to changes in technology, standards and
services that affect the radio industry;
- our dependence on federally issued licenses subject to
extensive federal regulation;
- actions by the FCC or new legislation affecting the radio
industry;
- increases to royalties we pay to copyright owners or the
legislation requiring royalties to be paid to record labels and
recording artists;
- 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 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 radio 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;
- 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 we are controlled by the Beasley family, which
creates difficulties for any attempt to gain control of the
Company; and
- 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 8, 2022 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 ended |
|
Twelve months ended |
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net revenue |
$ |
70,736,628 |
|
|
$ |
68,460,644 |
|
|
$ |
241,426,308 |
|
|
$ |
206,143,861 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (including stock-based compensation and
excluding depreciation and amortization shown separately
below) |
|
56,821,830 |
|
|
|
48,313,273 |
|
|
|
199,470,185 |
|
|
|
182,181,555 |
|
Corporate expenses (including stock-based compensation) |
|
4,734,088 |
|
|
|
3,677,698 |
|
|
|
16,578,046 |
|
|
|
15,628,370 |
|
Depreciation and amortization |
|
2,663,821 |
|
|
|
2,721,710 |
|
|
|
11,309,995 |
|
|
|
11,096,937 |
|
Impairment losses |
|
- |
|
|
|
2,166,400 |
|
|
|
- |
|
|
|
8,970,812 |
|
Gain on dispositions |
|
- |
|
|
|
(4,439,710 |
) |
|
|
(191,988 |
) |
|
|
(4,439,710 |
) |
Other operating income, net |
|
- |
|
|
|
(3,600,000 |
) |
|
|
(400,000 |
) |
|
|
(3,000,000 |
) |
Total operating expenses |
|
64,219,739 |
|
|
|
48,839,371 |
|
|
|
226,766,238 |
|
|
|
210,437,964 |
|
Operating income (loss) |
|
6,516,889 |
|
|
|
19,621,273 |
|
|
|
14,660,070 |
|
|
|
(4,294,103 |
) |
Non-operating income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(6,791,219 |
) |
|
|
(4,313,701 |
) |
|
|
(26,456,236 |
) |
|
|
(16,894,407 |
) |
Loss on extinguishment of long-term debt |
|
- |
|
|
|
- |
|
|
|
(4,996,731 |
) |
|
|
(2,798,789 |
) |
Gain on forgiveness of long-term debt |
|
10,000,000 |
|
|
|
- |
|
|
|
10,000,000 |
|
|
|
- |
|
Other income, net |
|
9,758 |
|
|
|
32,070 |
|
|
|
68,437 |
|
|
|
88,030 |
|
Income (loss) before income taxes |
|
9,735,428 |
|
|
|
15,339,642 |
|
|
|
(6,724,460 |
) |
|
|
(23,899,269 |
) |
Income tax expense (benefit) |
|
(903,970 |
) |
|
|
4,304,900 |
|
|
|
(5,321,630 |
) |
|
|
(5,185,992 |
) |
Income (loss) before equity in earnings of unconsolidated
affiliates |
|
10,639,398 |
|
|
|
11,034,742 |
|
|
|
(1,402,830 |
) |
|
|
(18,713,277 |
) |
Equity in earnings of
unconsolidated affiliates, net of tax |
|
(57,222 |
) |
|
|
(70,164 |
) |
|
|
(132,264 |
) |
|
|
(160,879 |
) |
Net income (loss) |
|
10,582,176 |
|
|
|
10,964,578 |
|
|
|
(1,535,094 |
) |
|
|
(18,874,156 |
) |
Earnings attributable to
noncontrolling interest |
|
- |
|
|
|
226,420 |
|
|
|
129,249 |
|
|
|
1,108,234 |
|
Net income (loss) attributable to BBGI stockholders |
$ |
10,582,176 |
|
|
$ |
11,190,998 |
|
|
$ |
(1,405,845 |
) |
|
$ |
(17,765,922 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income
(loss) per share |
$ |
0.36 |
|
|
$ |
0.38 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.63 |
) |
Basic common shares
outstanding |
|
29,264,059 |
|
|
|
29,276,454 |
|
|
|
29,263,963 |
|
|
|
28,386,456 |
|
Diluted common shares
outstanding |
|
29,412,239 |
|
|
|
29,293,120 |
|
|
|
29,493,764 |
|
|
|
28,415,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Data –
Unaudited(in thousands)
|
December 31, |
|
December 31, |
|
2021 |
|
2020 |
Cash and cash equivalents |
$ |
51,379 |
|
$ |
20,759 |
Working capital |
|
67,696 |
|
|
37,065 |
Total assets |
|
762,088 |
|
|
738,614 |
Long-term debt, net of current
portion and unamortized debt issuance costs |
|
293,790 |
|
|
258,345 |
Stockholders' equity |
$ |
263,082 |
|
$ |
267,727 |
Selected Statement of Cash Flows Data –
Unaudited
|
Year ended |
|
December 31, |
|
2021 |
|
|
2020 |
|
Net cash provided by (used in) operating activities |
$ |
(1,907,227 |
) |
|
$ |
4,214,316 |
|
Net cash used in investing
activities |
|
(1,136,268 |
) |
|
|
(3,845,616 |
) |
Net cash provided by financing
activities |
|
33,662,705 |
|
|
|
1,742,561 |
|
Net increase in cash and cash
equivalents |
$ |
30,619,210 |
|
|
$ |
2,111,261 |
|
Calculation of SOI –
Unaudited
|
Three months ended |
|
Year ended |
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net revenue |
$ |
70,736,628 |
|
|
$ |
68,460,644 |
|
|
$ |
241,426,308 |
|
|
$ |
206,143,861 |
|
Station operating
expenses |
|
(56,821,830 |
) |
|
|
(48,313,273 |
) |
|
|
(199,470,185 |
) |
|
|
(182,181,555 |
) |
SOI |
$ |
13,914,798 |
|
|
$ |
20,147,371 |
|
|
$ |
41,956,123 |
|
|
$ |
23,962,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss)
Attributable to BBGI Stockholders to SOI – Unaudited
|
Three months ended |
|
Year ended |
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net income (loss) attributable
to BBGI stockholders |
$ |
10,582,176 |
|
|
$ |
11,190,998 |
|
|
$ |
(1,405,845 |
) |
|
$ |
(17,765,922 |
) |
Corporate expenses |
|
4,734,088 |
|
|
|
3,677,698 |
|
|
|
16,578,046 |
|
|
|
15,628,370 |
|
Depreciation and
amortization |
|
2,663,821 |
|
|
|
2,721,710 |
|
|
|
11,309,995 |
|
|
|
11,096,937 |
|
Impairment losses |
|
- |
|
|
|
2,166,400 |
|
|
|
- |
|
|
|
8,970,812 |
|
Gain on dispositions |
|
- |
|
|
|
(4,439,710 |
) |
|
|
(191,988 |
) |
|
|
(4,439,710 |
) |
Other operating income,
net |
|
- |
|
|
|
(3,600,000 |
) |
|
|
(400,000 |
) |
|
|
(3,000,000 |
) |
Interest expense |
|
6,791,219 |
|
|
|
4,313,701 |
|
|
|
26,456,236 |
|
|
|
16,894,407 |
|
Loss on extinguishment of
long-term debt |
|
- |
|
|
|
- |
|
|
|
4,996,731 |
|
|
|
2,798,789 |
|
Gain on forgiveness of
long-term debt |
|
(10,000,000 |
) |
|
|
- |
|
|
|
(10,000,000 |
) |
|
|
- |
|
Other income, net |
|
(9,758 |
) |
|
|
(32,070 |
) |
|
|
(68,437 |
) |
|
|
(88,030 |
) |
Income tax expense
(benefit) |
|
(903,970 |
) |
|
|
4,304,900 |
|
|
|
(5,321,630 |
) |
|
|
(5,185,992 |
) |
Equity in earnings of
unconsolidated affiliates, net of tax |
|
57,222 |
|
|
|
70,164 |
|
|
|
132,264 |
|
|
|
160,879 |
|
Earnings attributable to
noncontrolling interest |
|
- |
|
|
|
(226,420 |
) |
|
|
(129,249 |
) |
|
|
(1,108,234 |
) |
SOI |
$ |
13,914,798 |
|
|
$ |
20,147,371 |
|
|
$ |
41,956,123 |
|
|
$ |
23,962,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Revenue to Free
Cash Flow - Unaudited
|
Three months ended |
|
Year ended |
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net revenue |
$ |
70,736,628 |
|
|
$ |
68,460,644 |
|
|
$ |
241,426,308 |
|
|
$ |
206,143,861 |
|
Operating expenses |
|
(56,821,830 |
) |
|
|
(48,313,273 |
) |
|
|
(199,470,185 |
) |
|
|
(182,181,555 |
) |
Corporate expenses |
|
(4,734,088 |
) |
|
|
(3,677,698 |
) |
|
|
(16,578,046 |
) |
|
|
(15,628,370 |
) |
Net proceeds from
dispositions |
|
- |
|
|
|
4,631,566 |
|
|
|
362,500 |
|
|
|
4,631,566 |
|
Insurance proceeds |
|
- |
|
|
|
- |
|
|
|
3,000,000 |
|
|
|
- |
|
Stock-based compensation
expense |
|
209,118 |
|
|
|
55,999 |
|
|
|
1,383,456 |
|
|
|
750,670 |
|
Interest expense |
|
(6,791,219 |
) |
|
|
(4,313,701 |
) |
|
|
(26,456,236 |
) |
|
|
(16,894,407 |
) |
Amortization of debt issuance
costs |
|
380,211 |
|
|
|
473,668 |
|
|
|
1,551,996 |
|
|
|
1,915,302 |
|
Interest income |
|
4,588 |
|
|
|
410 |
|
|
|
32,260 |
|
|
|
28,149 |
|
Capital expenditures |
|
(794,018 |
) |
|
|
(480,563 |
) |
|
|
(4,498,768 |
) |
|
|
(7,477,182 |
) |
FCF |
$ |
2,189,390 |
|
|
$ |
16,837,052 |
|
|
$ |
753,285 |
|
|
$ |
(8,711,966 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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From Jun 2024 to Jul 2024
Beasley Broadcast (NASDAQ:BBGI)
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From Jul 2023 to Jul 2024