Beasley Broadcast Group, Inc. today announced operating results for the three-month and six-month periods ended June 30, 2018.
As previously reported, on May 1, 2017, the Company completed the sale of six stations in Greenville-New Bern-Jacksonville, and on December 19, 2017, Beasley completed an asset exchange transaction whereby the Company exchanged its Boston adult contemporary station WMJX-FM and $12.0 million for Boston’s sports station WBZ-FM. The results presented herein reflect the operations and results from WBZ-FM in the three and six months ended June 30, 2018 and WMJX-FM in the three and six months ended June 30, 2017. The results also reflect one month of contribution from the Greenville-New Bern-Jacksonville stations in the three-month period, and four months of contribution in the six-month period ended June 30, 2017.
The $0.6 million, or 1.0%, year-over-year increase in net revenue during the three months ended June 30, 2018, reflects the inclusion of WBZ-FM Boston, partially offset by the disposition of WMJX-FM Boston and the Greenville-New Bern-Jacksonville stations. Net revenue for the three months ended June 30, 2018 was comparable to net revenue for the same period in 2017 at the Company’s other market clusters.
Station Operating Income (SOI, a non-GAAP financial measure), increased 3.5% year-over-year in the second quarter of 2018. The increase in second quarter 2018 SOI reflects the higher net revenue during the period which more than offset a 0.1% year-over-year increase in station operating expenses.
The year-over-year decrease in second quarter 2018 operating income to $10.7 million solely reflects the benefit in the year ago period of $2.9 million for items which did not recur in the second quarter of 2018 but raised second quarter 2017 operating income to $12.8 million.
Commenting on the financial results, Caroline Beasley, Chief Executive Officer, said, “During the second quarter, Beasley remained committed to enhancing shareholder value through capital returns and capital structure improvements. In this regard, we declared our nineteenth consecutive quarterly cash dividend. In addition, interest expense decreased approximately 20% year-over-year to $3.8 million, reflecting the recent refinancing of our senior debt, which reduced our interest rate by 200 basis points. We used cash from operations to make voluntary debt repayments of $2.0 million in the second quarter and ended June 30, 2018 with total outstanding debt of $220.0 million.