Thursday, May 1, 2014

Brutal Winter Weather Hurt Beasley Broadcasting

Brutal winter weather and a bigger tax bite cut quarterly profits for the Naples-based Beasley Broadcast Group Inc. according to

On Wednesday, Beasley reported net income of $700,000, or 3 cents a share, in the quarter ended March 31, down from net income of $2.4 million, or 11 cents a share, in the same quarter a year ago.

The radio company reported that its income tax expense increased by $1.3 million, or 128.8 percent, in the quarter compared to a year ago.


Net revenue was $2.4 million in the quarter, down from $2.8 million a year ago.

Revenue was constrained by harsh winter weather as retailers didn't spend on advertising to reach customers who were largely staying home, said Caroline Beasley, executive vice president and chief financial officer.

The weather impact was especially noticeable in Philadelphia and in Augusta, Georgia, where ice storms damaged a broadcasting tower. Repairing it also added to the company's capital spending in the quarter.

About 60 percent of the company's revenues come from station clusters in Philadelphia, Las Vegas and Miami, its three largest markets, Beasley said. All three reported revenues lower than a year ago.

Revenue from the Southwest Florida stations were up for the quarter, with January revenues up "significantly," Beasley said.

Beasley said the company's tax rates should stabilize through the rest of the year and political advertising will pick up later in the year.

Beasley operates 44 stations, 28 FM and 16 AM, located in eleven markets in the United States.

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