Beasley Broadcast (BBGI) 5 Nov 24 2024 Q3 Earnings call transcript

Beasley Broadcast Group held a productive third quarter earnings call, highlighting significant progress on strategic priorities and financial improvements. CEO Caroline Beasley and newly appointed CFO Lauren Burrows Coleman discussed key achievements and future outlooks.

Strategic Priorities

The company successfully completed an exchange offer, new notes offering, and tender offer, reducing debt by $47 million and extending maturities to August 2028. This strategic move demonstrates Beasley's commitment to enhancing its capital structure and creating value for stakeholders. The reverse split of Class A and Class B common stock was also implemented to maintain NASDAQ listing and make shares more investable.

Financial Performance

Q3 revenue showed a 0.5% increase on a same-station basis, with digital revenue accounting for 19.4% of total revenue, reflecting the company's strategic shift towards digital revenue diversification. Digital revenue grew 11.7% on a same-station basis and 13.6% on a year-to-date basis. National revenue remained constrained across the industry but saw a 10.7% increase on a same-station basis, benefiting from political revenue.

Operational Efficiency

Operating expenses were reduced by $1.8 million year-over-year, with a focus on efficiency improvements and expense reductions, including severance costs and non-cash trade expenses. These actions are projected to result in annualized savings of over $5 million.

Looking Ahead

The fourth quarter is pacing up in the mid-single digits, and Beasley is optimistic about revenue growth. Despite some hesitancy from advertisers due to the election, the company remains focused on growing its traditional business and expanding digital revenues.

Conclusion

Beasley Broadcast Group's third quarter earnings call revealed a company in transition, with a clear focus on strategic priorities and financial improvements. The successful completion of the debt reduction and exchange offer, coupled with operational efficiency measures, positions Beasley well for future growth. With a strong emphasis on digital revenue diversification and a strategic focus on local direct business, the company is poised to navigate the challenges of the ad environment and economy at large.