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Beasley Broadcast Group First Quarter Net Revenue Rises

Same station net revenue increases, company pays down debt

Beasley Broadcast Group has released revenue data for the quarter that ended March 31.

The $1.5 million, or 6.5%, rise in net revenue during the three months, 2013, compared with the same period in 2012, is based in part on the strength of the Philadelphia, Las Vegas and Fort Myers, Fla. market clusters, as well as the recent acquisition of KOAS(FM) in Las Vegas.

The $0.2 million, or 4%, year-over-year improvement in first quarter operating income reflects the quarterly revenue increase which offset a $1.3 million rise in total operating expenses, which included costs related to operating KOAS and sales expenses.

First quarter 2013 station operating income, a non-GAAP (U.S. generally accepted accounting principles) financial measure, rose 4.1%, to $8.1 million compared with the 2012 first quarter, as the revenue offset a $1.2 million increase in station operating expenses.

A $0.7 million, or 52.1%, increase in interest expense and a $0.5 million, or 34%, reduction in income tax expense resulted in net income and net income per diluted share of $2.4 million and $0.11, respectively for the 2013 first quarter, which was in line with the comparable period last year.

“The solid first quarter revenue growth led to another period of SOI [station operating income] growth, as consolidated SOI increased 4.1% year-over-year,” Chairman and CEO George G. Beasley said. “First quarter SOI margins also remain healthy at 32.7% but declined slightly from last year as station operating expenses rose due to our investments in our local sales teams.”

“During the first quarter, we made repayments totaling $1.0 million against the credit facility, reducing total bank debt to $115.7 million at March 31, 2013, from $123.4 million at the end of last year’s first quarter,” Beasley continued.

On April 3, Beasley Broadcast Group said that it amended its first lien credit agreement, enabling it to prepay the $25 million second lien credit facility in full and modify the interest rate margins on the term loan. The company also borrowed $20 million on the first lien term loan and $2 million on its revolving credit facility, and paid the remaining $3 million from cash on hand. Total debt outstanding is currently $112.7 million. Beasley expects to record a loss on extinguishment of debt of $1.3 million in the quarter ending June 30.

“Our debt and leverage reduction initiatives over the last few years have reduced our leverage ratio to its lowest level in over ten years, and we intend to continue deploying cash from operations to further reduce debt and pursue other initiatives that can enhance shareholder value, including the return of capital through possible dividend declarations or share repurchases,” Beasley said.

Beasley held a webcast April 26 to discuss financial results and operations. A replay will be available online for five days.